TOPIC 10: CHANGE MANAGEMENT

For organizations, the last decade has been fraught with restructurings, process enhancements, mergers, acquisitions, and layoffsall in hopes of achieving revenue growth and increased profitability. While the external environment (competitive, regulatory, and so on) will continue to play a role in an organization's ability to deliver goods and services, the internal environment within the organization will increasingly inhibit it from delivering products required to meet the demands of the marketplace unless it is able to adapt quickly. The major areas of changes in a company's internal environment include:

Strategic: Sometimes in the course of normal business operation it is necessary for management to adjust the firm's strategy to achieve the goals of the company, or even to change the mission statement of the organization in response to demands of the external environments. Adjusting a company's strategy may involve changing its fundamental approach to doing business: the markets it will target, the kinds of products it will sell, how they will be sold, its overall strategic orientation, the level of global activity, and its various partnerships and other joint-business arrangements. Structural: Organizations often find it necessary to redesign the structure of the company due to influences from the external environment. Structural changes involve the hierarchy of authority, goals, structural characteristics, administrative procedures, and management systems. Almost all change in how an organization is managed falls under the category of structural change. A structural change may be as simple as implementing a no-smoking policy, or as involved as restructuring the company to meet the customer needs more effectively. Process-oriented: Organizations may need to reengineer processes to achieve optimum workflow and productivity. Process-oriented change is often related to an organization's production process or how the organization assembles products or delivers services. The adoption of robotics in a manufacturing plant or of laser-scanning checkout systems at supermarkets is examples of process-oriented changes. People-centered: This type of change alters the attitudes, behaviors, skills, or performance of employees in the company. Changing people-centered processes involves communicating, motivating, leading, and interacting within groups. This focus may entail changing how problems are solved, the way employees learn new skills, and even the very nature of how employees perceive themselves, their jobs, and the organization. Some people-centered changes may involve only incremental changes or small improvements in a process. For example, many organizations undergo leadership training that teaches managers how to communicate more openly with employees. Other programs may concentrate on team processes by teaching both managers and employees to work together more effectively to solve problems.

Remember that strategic, structural, process-oriented, and people-centered changes occur continuously in dynamic businesses. Often, changes in one of these areas impact changes in the other areas. Many employees believe that a change is often reactive and nothing more than a quick fix; then they brace themselves for more changes in the future. Management needs to realize that serious underlying problems in organizations must be addressed with long-term consequences in mind. Thus, when management implements changes, careful thought must be given to ensure that the new processes are for the long-term good of the company. Major Types of Organizational Change Typically, the phrase organizational change is about a significant change in the organization, such as reorganization or adding a major new product or service. This is in contrast to smaller changes, such as

adopting a new computer procedure. Organizational change can seem like such a vague phenomena that it is helpful if you can think of change in terms of various dimensions as described below. Organization-wide Versus Subsystem Change Examples of organization-wide change might be a major restructuring, collaboration or rightsizing. Usually, organizations must undertake organization-wide change to evolve to a different level in their life cycle, for example, going from a highly reactive, entrepreneurial organization to one that has a more stable and planned development. Experts assert that successful organizational change requires a change in culture cultural change is another example of organization-wide change. Examples of a change in a subsystem might include addition or removal of a product or service, reorganization of a certain department, or implementation of a new process to deliver products or services. Transformational Versus Incremental Change An example of transformational (or radical, fundamental) change might be changing an organizations structure and culture from the traditional top-down, hierarchical structure to a large amount of self-directing teams. Another example might be Business Process Re-engineering, which tries to take apart (at least on paper, at first) the major parts and processes of the organization and then put them back together in a more optimal fashion. Transformational change is sometimes referred to as quantum change. Examples of incremental change might include continuous improvement as a quality management process or implementation of new computer system to increase efficiencies. Many times, organizations experience incremental change and its leaders do not recognize the change as such. Remedial Versus Developmental Change Change can be intended to remedy current situations, for example, to improve the poor performance of a product or the entire organization, reduce burnout in the workplace, and help the organization to become much more proactive and less reactive, or address large budget deficits. Remedial projects often seem more focused and urgent because they are addressing a current, major problem. It is often easier to determine the success of these projects because the problem is solved or not. Change can also be developmental to make a successful situation even more successful, for example, expand the amount of customers served, or duplicate successful products or services. Developmental projects can seem more general and vague than remedial, depending on how specific goals are and how important it is for members of the organization to achieve those goals. Some people might have different perceptions of what is a remedial change versus a developmental change. They might see that if developmental changes are not made soon, there will be need for remedial changes. Also, organizations may recognize current remedial issues and then establish a developmental vision to address the issues. In those situations, projects are still remedial because they were conducted primarily to address current issues. Unplanned Versus Planned Change Unplanned change usually occurs because of a major, sudden surprise to the organization, which causes its members to respond in a highly reactive and disorganized fashion. Unplanned change might occur when the Chief Executive Officer suddenly leaves the organization, significant public relations problems occur, poor product performance quickly results in loss of customers, or other disruptive situations arise. Planned change occurs when leaders in the organization recognize the need for a major change and proactively organize a plan to accomplish the change. Planned change occurs with successful implementation of a Strategic Plan, plan for reorganization, or other implementation of a change of this magnitude. Note that planned change, even though based on a proactive and well-done plan, often does not occur in a highly organized fashion. Instead, planned change tends to occur in more of a chaotic and disruptive fashion than expected by participants. Causes of Organizational Change This is a time of unprecedented change in our society. The changes one experiences are happening at faster and faster rates. As examples, the telephone, radio, TV, and microwave weren't even in use decades ago, and today these gadgets are commonplace, along with the computer, Internet, and fax machine. In just a few months, the technology that an organization uses on an everyday basis may be outdated and replaced. That means an organization needs to be responsive to advances in the technological environment; its employees' work skills must evolve as technology evolves. Organizations that refuse to adapt are likely to be the ones that won't be around in a few short years. If an organization wants to survive and prosper, its managers must continually innovate and adapt to new situations.

Every organization goes through periods of transformation that can cause stress and uncertainty. To be successful, organizations must embrace many types of change. Businesses must develop improved production technologies, create new products desired in the marketplace, implement new administrative systems, and upgrade employees' skills. Organizations that adapt successfully are both profitable and admired. Managers must contend with all factors that affect their organizations. The following lists internal and external environmental factors that can encourage organizational changes:

The external environment is affected by political, social, technological, and economic stimuli outside of the organization that cause changes. The internal environment is affected by the organization's management policies and styles, systems, and procedures, as well as employee attitudes.

Typically, the concept of organizational change is used to describe organization-wide change, as opposed to smaller changes such as adding a new person, modifying a program, and so on. Examples of organization-wide change might include a change in mission, restructuring operations (for example, restructuring to self-managed teams or due to layoffs), new technologies, mergers, or new programs such as Total Quality Management, re-engineering, and so on. Managers should note that all changes should be implemented as part of a strategy to accomplish an overall goal; these transformations should not take place just for the sake of change. Reasons why People Resist Change 1. The risk of change is seen as greater than the risk of standing still 2. People feel connected to other people who are identified with the old way 3. People have no role models for the new activity 4. People fear they lack the competence to change 5. People feel overloaded and overwhelmed 6. People have a healthy skepticism and want to be sure new ideas are sound 7. People fear hidden agendas among would-be reformers 8. People feel the proposed change threatens their notions of themselves 9. People anticipate a loss of status or quality of life 10. People genuinely believe that the proposed change is a bad idea Managing or overcoming resistance to change There are three basic elements in creating successful change:

1. The desire to change 2. The ability to change 3. The permission to change (for those in organizations)
1. The Desire to Change Most humans will not change their beliefs, habits, or behaviors unless they are motivated to do so. Most will not change, even if change is for the better, unless there is come compelling reason. As long as the perceived rewards of staying as we are remain greater than the rewards of changing, we will likely stay as we are. Or, conversely, as long as the perceived risks of changing are greater than the risks for staying the same, we will be unlikely to change.

Of the three elements required for change, the bias is that desire is most important. Little happens if there is no real motivation to change. And strong motivation frequently makes up for shortcomings in the other two. A central question, then, is how do we create this desire to change? Awareness

First we must create awareness of the need to change. What are the compelling reasons to move away from the familiar and comfortable and move to something different and perhaps uncomfortable? In today's competitive world economy, more and more people are becoming aware of the need for improving the way or organizations work. However, if we really want to turn up the heat on change, we must discuss internally the specific challenges facing our organization. Who is our competition? What are they doing? What new products and services are they adding? Is the market for our product or service expanding or contracting? What are our costs and revenues per employee versus our competitions? Will our products be subject to new environmental controls? What will rapidly expanding telecommunications technology mean to us and our existing work processes? Can we reduce our overhead expenses to match those considered best in our industry? Could we really become "paperless?" How could we reduce our basic work process by 10 steps this month? How could we improve turnaround time by 90%? It is my opinion that the more profitable an organization is, the more creative it must be in creating the appropriate challenge. One organization I worked with wanted to increase the rate of implementation of employee involvement, which for several years had been painfully slow. The company was old, well established in its market, and experiencing continued earnings growth. What, I asked myself, would provide some motivation for these people to move forward? By chance, I came across an article discussing one of their strongest competitors. The article related performance data of the competitor showing, for example, that its revenues per employee were twice that of my client! I shared this information with the management team and they were shocked by the numbers. They could now see the potential threat posed by a competitor with such strong financial performance. In this case, the risk of inaction became a greater motivator than the discomfort of changing to a participative style of management.

Again, the purpose of these strategies is to create some discomfort or dissatisfaction with the status quo--a realization that to stay as we are is more of a threat than to move forward with new concepts. The above strategies make one major assumption, however, and that is that management is not already destroying employee motivation and allegiance with destructive dictates and mandates. For example, those organizations prone to laying off employees at the first sign of financial weakness will find it difficult, if not impossible, to implement and sustain any form of participative management. A layoff as a first alternative to cost reduction contradicts the notion of participative management. Employees will find it hard to commit fully to the organization and its mission, goals, and ideals. 2. The Ability to Change If the motivation for change exists, then people will need some assistance developing the skills to change. Ignorant of the dynamics of human behavior, we assume that once people understand the need for change, they will miraculously move in that direction. However, what hold us back is our ingrained beliefs and resulting behaviors. For example, I may want to become a participative manager but all my previous training has conditioned me to be controlling and directive and, clearly, the decision maker. And down deep inside, I might really have doubts about this employee involvement stuff. To change my beliefs and ultimately my behaviors significantly, I will need some help. Because our prior training and conditioning is such a significant barrier to our ability to change, we need to take some very proactive steps (such as the strategies listed above). Our learned behavior is like a spring that pulls us back to a comfortable position whenever we stretch a little too far. Breaking free of that spring is difficult, but possible, if we take conscious actions that eventually replace the old behaviors with new ones.

3. The Permission to Change Finally, there is the issue of permission. When a change is personal, we only have to give ourselves permission to change. But when the change is in an organizational context, permission must be granted by those in power. I may have the desire to change, and I may have the knowledge and ability to change. But if I work in an environment that doesn't enable me to change, very little will happen. Desire and ability are there, but permission is not.

HRs role in change management People management and development professionals have significant role to play in any change management process. HRs involvement in certain areas was identified as sometimes being the difference between successful and less successful projects: * Involvement at the initial stage in the project team. * Advising project leaders in skills available within the organisation identifying any skills gaps, training needs, new posts, new working practices etc * Balancing out the narrow/short-term goals with broader strategic needs. * Assessing the impact of change in one area/department/site on another part of the organisation. * Being used to negotiating and engaging across various stakeholders. * Understanding stakeholder concerns to anticipate problems. * Understanding the appropriate medium of communication to reach various groups. * Helping people cope with change, performance management and motivation. Kurt Lewins Force field analysis Force field analysis provides useful background and a practical tool for assessing the case for change a necessary precursor for the creation and implementation of a change management initiative. Force field analysis is the creation of the American social psychologist Kurt Lewin, widely regarded as one of the early 20th century founders of modern psychology, who developed the change model - known as "Lewin's Freeze Phases" - and which still forms the underlying basis of many change management theories models and strategies for managing change. According to Kurt Lewin's force field analysis: "An issue is held in balance by the interaction of two opposing sets of forces - those seeking to promote change (driving forces) and those attempting to maintain the status quo (restraining forces)". In Lewins view, organizations can be seen as systems in which the current situation is not a static pattern, but rather an "equilibrium" - or dynamic balance of forces working in opposite directions. Thus, any change that may occur is dependent on a shift in this balance or equilibrium where the driving forces need to exceed the restraining forces. Force field analysis provides a framework for looking at the factors or forces that influence a potential change situation. Lewins freeze model suggests that change involves a move from one static state via a state of activity to another static status quo -and all this via a three-stage process of managing change: unfreezing, changing and re-freezing. UNFRFEEZE----------------------------------------CHANGE--------------------------------REFREEZE The freeze change model recognizes that people like the safety, comfort and feeling of control within their environment. It also recognizes that they derive a strong sense of identity from their environment.

At the unfreezing stage, the right environment should be created, whereas at the change stage, there should be enough support for the desired state and at the refreezing stage there is need for a reinforcement to anchor and safeguard change. Thus change is threatening to that status quo and causes discomfort. Lewin regarded this status quo as a 'frozen' state and suggested that significant effort may be required to 'unfreeze' them in order to get them to change.

Unfreeze This first stage of change involves preparing the organization to accept that change is necessary, which involves break down the existing status quo before you can build up a new way of operating. Key to this is developing a compelling message showing why the existing way of doing things cannot continue. This is easiest to frame when you can point to declining sales figures, poor financial results, worrying customer satisfaction surveys, or suchlike: These show that things have to change in a way that everyone can understand. To prepare the organization successfully, you need to start at its core you need to challenge the beliefs, values, attitudes, and behaviors that currently define it. Using the analogy of a building, you must examine and be prepared to change the existing foundations as they might not support add-on storeys; unless this is done, the whole building may risk collapse. This first part of the change process is usually the most difficult and stressful. When you start cutting down the way things are done, you put everyone and everything off balance. You may evoke strong reactions in people, and thats exactly what needs to done. By forcing the organization to re-examine its core, you effectively create a (controlled) crisis, which in turn can build a strong motivation to seek out a new equilibrium. Without this motivation, you wont get the buy-in and participation necessary to effect any meaningful change. In order for the Kenya government to achieve the vision 2030, one of its strategic changes that are currently being implemented is the structural change which started by instilling a need to Kenyans that they should discard the status quo and embrace a new dawn. Through civic education and campaigns, Kenyans were convinced about the need for change and despite the forces that were against the proposed change, the new order was greeted with great enthusiasm.

Change After the uncertainty created in the unfreeze stage; the change stage is where people begin to resolve their uncertainty and look for new ways to do things. People start to believe and act in ways that support the new direction. The transition from unfreeze to change does not happen overnight: People take time to embrace the new direction and participate proactively in the change. In order to accept the change and contribute to making the change successful, people need to understand how the changes will benefit them. Not everyone will fall in line just because the change is necessary and will benefit the company. This is a common assumption and pitfall that should be avoided. Unfortunately, some people will genuinely be harmed by change, particularly those who benefit strongly from the status quo. Others may take a long time to recognize the benefits that change brings. Managers need to foresee and manage these situations.

Time and communication are the two keys to success for the changes to occur. People need time to understand the changes and they also need to feel highly connected to the organization throughout the transition period. When you are managing change, this can require a great deal of time and effort and hands-on management is usually the best approach. When the new constitution was promulgated in August last year, both the forces that were against the change and those that were for it embraced and supported the change. This is characterized by the strong adherence Kenyans to the new constitution.

Refreeze When the changes are taking shape and people have embraced the new ways of working, the organization is ready to refreeze. The outward signs of the refreeze are a stable organization chart, consistent job descriptions, and so on. The refreeze stage also needs to help people and the organization internalize or institutionalize the changes. This means making sure that the changes are used all the time; and that they are incorporated into everyday business. With a new sense of stability, employees feel confident and comfortable with the new ways of working. The rationale for creating a new sense of stability in our every changing world is often questioned. Even though change is constant in many organizations, this refreezing stage is still important. Without it, employees get caught in a transition trap where they arent sure how things should be done, so nothing ever gets done to full capacity. In the absence of a new frozen state, it is very difficult to tackle the next change initiative effectively. How do you go about convincing people that something needs changing if you havent allowed the most recent changes to sink in? Change will be perceived as change for changes sake, and the motivation required to implement new changes simply wont be there. As part of the Refreezing process, make sure that you celebrate the success of the change this helps people to find closure, thanks them for enduring a painful time, and helps them believe that future change will be successful. It has now become business as usual when as we watch people being vetted for the top jobs in the country in public. Before August last year the Status quo was that the president was appointing top civil servant unilaterally, the current status quo is that the top jobs must vetting is a rigorous process subjected to public scrutiny. The change process Analysis Unfreeze 1. Determine what needs to change

Survey the organization to understand the current state Understand why change has to take place.

2. Ensure there is strong support from upper management Use Stakeholder Analysis and Stakeholder Management to identify and win the support of key people within the organization Frame the issue as one of organization-wide importance.

3. Create the need for change Create a compelling message as to why change has to occur


Change

Use your vision and strategy as supporting evidence Communicate the vision in terms of the change required Emphasize the why. Remain open to employee concerns and address them in terms of the need to change.

4. Manage and understand the doubts and concerns

1. Communicate often

Do so throughout the planning and implementation of the changes Describe the benefits Explain exactly the how the changes will affect everyone Prepare everyone for what is coming. Answer questions openly and honestly Deal with problems immediately Relate the need for change back to operational necessities. Provide plenty of options for employee involvement Have line managers provide daytoday direction. Generate short-term successes to reinforce the change Negotiate with external stakeholders as necessary (such as employee organizations).

2. Dispel rumours

3. Empower action

4. Involve people in the process

Refreeze 1. Anchor the changes into the culture

Identity what supports the change Identify barriers to sustaining change. Ensure leadership support Create a reward system Establish feedback systems Adapt the organizational structure as necessary.

2. Develop ways to sustain the change

3. Provide support and training Keep everyone informed and supported. 4. Celebrate success. Summary Lewins change model is a simple and easy-to-understand framework for managing change. By recognizing these three distinct stages of change, you can plan to implement the change required. You start by creating the motivation to change (unfreeze). You move through the change process by promoting effective communications and empowering people to embrace new ways of working (change). And the process ends when you return the organization to a sense of stability (refreeze), which is so necessary for creating the confidence from which to embark on the next, inevitable change.

TOPIC 3: GROUPS & TEAMS

Groups and teams are a major feature of organizational life. Individuals seldom work in isolation from others. Work is a group-based activity and if the organization is to function effectively it requires collaboration and co-operation among its members. The work organization and its sub-units are made up of groups of people. Most activities of the organization require at least some degree of coordination through the operation of groups and teamwork. An understanding of the nature of groups is vital if the manager is to influence the behavior of people in the work situation. The manager must be aware of the impact of group and teams and their effect on organizational performance. Group versus Team Group Team A type or form of group Higher degree of coordinated interaction Stronger sense of members personal responsibility for achieving specified group outcomes A set of people, usually, with some degree of interaction and shared objectives

 Team Outcomes

High level of members identification with the group

demonstrate enhanced: Coordinated interaction Personal responsibility for group outcomes Individual identification with group

Basic Types of Groups Informal Type of Group Not originated by the organization -Voluntary membership obvious differences and boundaries between members and nonmembers Group of employees who lunch together. TYPES OF GROUPS Governance Executive Steering Disaster planning Compensation Finance Safety Long-range planning Overnight Audit Ethics n Public relations Size Social loafing: the phenomenon of reduced effort per person in large groups Process costs: increasing costs of coordination as group size increases Homogeneous

Examples of Committees

Characteristics of Groups and Teams

Composition Tucumns stages of group development

The Forming Storming Norming Performing model of group development was first proposed by Bruce Tuckman in 1965, who maintained that these phases are all necessary and inevitable in order for the team to grow, to face up to challenges, to tackle problems, to find solutions, to plan work, and to deliver results. This model has become the basis for subsequent models. Forming In the first stages of team building, the forming of the team takes place. The individual's behavior is driven by a desire to be accepted by the others, and avoid controversy or conflict. Serious issues and feelings are avoided, and people focus on being busy with routines, such as team organization, who does what, when to meet, etc. But individuals are also gathering information and impressions - about each other, and about the scope of the task and how to approach it. This is a comfortable stage to be in, but the avoidance of conflict and threat means that not much actually gets done.

The team meets and learns about the opportunities and challenges, and then agrees on goals and begins to tackle the tasks. Team members tend to behave quite independently. They may be motivated but are usually relatively uninformed of the issues and objectives of the team. Team members are usually on their best behavior but very focused on themselves. Mature team members begin to model appropriate behavior even at this early phase. Sharing the knowledge of the concept of "Teams - Forming, Storming, Norming, and Performing" is extremely helpful to the team. Supervisors of the team tend to need to be directive during this phase. The forming stage of any team is important because, in this stage, the members of the team get to know one another, exchange some personal information, and make new friends. This is also a good opportunity to see how each member of the team works as an individual and how they respond to pressure. Storming Every group will next enter the storming stage in which different ideas compete for consideration. The team addresses issues such as what problems they are really supposed to solve, how they will function independently and together and what leadership model they will accept. Team members open up to each other and confront each other's ideas and perspectives. In some cases storming can be resolved quickly. In others, the team never leaves this stage. The maturity of some team members usually determines whether the team will ever move out of this stage. Some team members will focus on minutiae to evade real issues. The storming stage is necessary to the growth of the team. It can be contentious, unpleasant and even painful to members of the team who are averse to conflict. Tolerance of each team member and their differences should be emphasized. Without tolerance and patience the team will fail. This phase can become destructive to the team and will lower motivation if allowed to get out of control. Some teams will never develop past this stage. Supervisors of the team during this phase may be more accessible, but tend to remain directive in their guidance of decision-making and professional behavior. The team members will therefore resolve their differences and members will be able to participate with one another more comfortably. The ideal is that they will not feel that they are being judged, and will therefore share their opinions and views. Norming The team manages to have one goal and come to a mutual plan for the team at this stage. Some may have to give up their own ideas and agree with others in order to make the team function. In this stage, all team members take the responsibility and have the ambition to work for the success of the team's goals. Performing It is possible for some teams to reach the performing stage. These high-performing teams are able to function as a unit as they find ways to get the job done smoothly and effectively without inappropriate conflict or the need for external supervision. Team members have become interdependent. By this time, they are motivated and knowledgeable. The team members are now competent, autonomous and able to handle the decision-making process without supervision. Dissent is expected and allowed as long as it is channeled through means acceptable to the team. Supervisors of the team during this phase are almost always participative. The team will make most of the necessary decisions. Even the most high-performing teams will revert to earlier stages in certain circumstances. Many long-standing teams go through these cycles many times as they react to changing circumstances. For example, a change in leadership may cause the team to revert to storming as the new people challenge the existing norms and dynamics of the team. Characteristics of an effective work group Belief in shared aims and objective A sense of commitment to group Acceptance of group values and norms A feeling of mutual trust and dependency Full participation by all members and decision making by consensus

A free flow of information and communication An open expression of feeling and disagreement Resolution of conflict by the members themselves A lower level of staff turnover, absenteeism, accidents, errors and complaints

Type of Diversity in groups Observable Attributes Race Ethnicity Gender Age Values Skills Knowledge and information Tenure Affective Consequences Satisfaction Identification with the group Conflict within the group Cognitive consequences Innovation Amount and quality of new ideas Communication-Related Consequences Decreased frequency within group Increased frequency outside of group

Underlying Attributes

Characteristics of Groups and Teams Differentiated roles Differentiated status Role ambiguity: a situation in which the expected behaviors for a group member are not clearly defined Role conflict: a situation in which a member of a group faces two or more contrasting sets of expectations

Norms: a groups shared standards that guide the behavior of its individual members Characteristics of group norms

Usually established for the more important issues of concern to the group Some apply only to certain members (like the leader), usually based on the status or particular role of those members Vary in the degree of their acceptance by group members Vary in how much deviation members are permitted in following them Early behaviors Imported behaviors Critical events Conformity: close adherence to the groups norms by the individual members

Development of group norms

Effects of group norms

In development of Group Norms Members observe the behavior of others to determine what is appropriate Norm is established. Suggested behavior is tolerated even though dissenting member withdraws from group. New behavior is suggested Members decide if any past experience can contribute effective behaviors Group members meet Members agree on behavior Members disagree on behavior Group Cohesion Development of group cohesion Positive effects Increased quality and quantity of group interactions Strengthened adherence to group norms Increased effectiveness in achieving group goals Augmented individual satisfaction with group membership Useful or creative ideas may be ignored if they deviate from established norms or values deeply cohesive in-group whose members try to minimize conflict and reach consensus without critically testing, analyzing, and evaluating ideas) Potential decrease in inter-group cooperation Counterproductive norms may be emphasized Strengthening interpersonal attraction among group members Generating a record of high performance and past success of the group Fostering competition with other groups The degree to which members are motivated to remain in the group

Effects of group cohesion

Negative effects

Increased probability of developing groupthink ( a type of thought within a

Formation and Development of Groups and Teams Organizational goals Opportunities for interaction and sharing mutual knowledge Psychological factors Security needs

 . Team Conflict

Social support Self-esteem needs Status needs

Influences on Formation Knowledge of team mission, objectives, norms Task sequencing Team role Interaction patterns Understanding team work skills Teammate characteristics Adaptability and flexibility Mutual performance monitoring and feedback, self-correction Coordination and task integration Communication Decision making and problem solving Team orientation Shared vision Team cohesion Mutual trust Importance of teamwork

Team Competencies in Areas of Knowledge Skills Attitudes

Types of team conflict Task (substantive): conflict that focuses on differences in ideas and courses of action in addressing the issues facing a group Relationship (affective) conflict: interpersonal differences among group members

Dealing with Team Conflict Possible causes of group conflict Task conflict Ambiguities regarding the task Differences in goals, objectives, and perspectives among group members Scarcity (actual or perceived) of resources Dissimilarities in the composition of the membership of the group Differences in interpersonal styles of individual members Differences in values

Relationship conflict

Managing intra-group conflict Increase the ratio of substantive to relationship conflict. Clarify and reduce task ambiguities Get the group to focus on goals that emphasize the common interests of all group members Avoid relationship conflicts Reduce unnecessary relational conflicts in inter-group interaction situations Increase the focus on substantive differences Emphasize organization-wide goals to increase cooperation and performance

Managing inter-group conflict

Any product or service they develop is highly desired and valued by customers. Increased cooperation among members is encouraged and achieved. Group membership increases individual members feelings of satisfaction, personal growth, and overall well-being.

2.

Ingredients Necessary for Group Effectiveness Exert enough effort to accomplish its tasks at acceptable levels of quantity and quality Obtain sufficient knowledge and skills to carry out its work Use appropriate strategies to apply its effort, knowledge, and skills effectively Develop appropriate group structures Develop appropriate support from the organization Obtain appropriate coaching and consultation assistance Processes Group Structure Context Coaching and Consultation

3.

Managers Responsibilities for Encouraging Group Effectiveness

Conflict within groups Conflicts between people in work groups, committees, task forces, and other organizational forms of faceto-face groups are inevitable. As we have mentioned, these conflicts may be destructive as well as constructive. Conflict arises in groups because of the scarcity of freedom, position, and resources. People who value independence tend to resist the need for interdependence and, to some extent, conformity within a group. People who seek power therefore struggle with others for position or status within the group. Rewards and recognition are often perceived as insufficient and improperly distributed, and members are inclined to compete with each other for these prizes. In western culture, winning is more acceptable than losing, and competition is more prevalent than cooperation, all of which tends to intensify intra-group conflict. Group meetings are often conducted in a win-lose climate that is, individual or subgroup interaction is conducted for the purpose of determining a winner and a loser rather than for achieving mutual problem solving. Negative effects of group conflicts The win-lose conflict in groups may have some of the following negative effects [6]: 1. Divert time and energy from the main issues

2. 3. 4. 5. 6. 7. 8. 9.

Delay decisions Create deadlocks Drive unaggressive committee members to the sidelines Interfere with listening Obstruct exploration of more alternatives Decrease or destroy sensitivity Cause members to drop out or resign from committees Arouse anger that disrupts a meeting

10. Interfere with empathy 11. Leave losers resentful 12. Incline underdogs to sabotage 13. Provoke personal abuse 14. Cause defensiveness Results of group conflicts Conflict in the group need not lead to negative results, however. The presence of a dissenting member or subgroup often results in more penetration of the group's problem and more creative solutions. This is because disagreement forces the members to think harder in an attempt to cope with what may be valid objections to general group opinion. But the group must know how to deal with differences that may arise. True interdependence among members leads automatically to conflict resolution in the group. Interdependence recognizes that differences will exist and that they can be helpful. Hence, members learn to accept ideas from dissenters (which do not imply agreeing with them), they learn to listen and to value openness, and they learn to share a mutual problem-solving attitude to ensure the exploration of all facets of a problem facing the group. Intergroup conflict between groups is a sometimes necessary, sometimes destructive, event that occurs at all levels and across all functions in organizations. Intergroup conflict may help generate creative tensions leading to more effective contributions to the organization's goals, such as competition between sales districts for the highest sales. Intergroup conflict is destructive when it alienates groups that should be working together, when it results in win-lose competition, and when it leads to compromises that represent less-than-optimum outcomes. Intergroup conflict occurs in two general forms. Horizontal strain involves competition between functions: for example, sales versus production, research and development versus engineering, purchasing versus legal, line versus staff, and so on. Vertical strain involves competition between hierarchical levels: for example, union versus management, foremen versus middle management, shop workers versus foremen. A struggle between a group of employees and management is an example of vertical strain or conflict. A clash between a sales department and production over inventory policy would be an example of horizontal strain. Certain activities and attitudes are typical in groups involved in a win-lose conflict. Each side closes ranks and prepares itself for battle. Members show increased loyalty and support for their own groups. Minor differences between group members tend to be smoothed over, and deviants are dealt with harshly. The level of morale in the groups increases and infuses everyone with competitive spirit. The power structure becomes better defined, as the "real" leaders come to the surface and members rally around the "best" thinkers and talkers. In addition, each group tends to distort both its own views and those of the competing group. What is perceived as "good" in one's own position is emphasized, what is "bad" is ignored; the position of the other group is assessed as uniformly "bad," with little "good" to be acknowledged or accepted. Thus, the judgment and objectivity of both groups are impaired. When such groups meet to "discuss" their differences, constructive, rational behavior is severely inhibited.[6] Each side phrases its questions and answers in a way that strengthens its own position and disparages the other's. Hostility between the two groups increases; mutual understandings are buried in negative stereotypes.

It is easy to see that under the conditions described above, mutual solutions to problems cannot be achieved. As a result, the side having the greater power wins; the other side loses. Or the conflict may go unresolved, and undesirable conditions or circumstances continue. Or the conflict may be settled by a higher authority. None of these outcomes is a happy one. Disputes settled on the basis of power, such as through a strike or a lockout in a labor-management dispute, are often deeply resented by the loser. Such settlements may be resisted and the winner defeated in underground ways that are difficult to detect and to counter. When this happens, neither side wins; both are losers. If the conflict is left unresolved, as when both sides withdraw from the scene, intergroup cooperation and effectiveness may be seriously impaired to the detriment of the entire organization. Disputes that are settled by higher authority also may cause resentment and what is called "lose-lose" consequences. Such settlements are invariably made on the basis of incomplete information without data that the conflict itself obscures and therefore are poor substitutes for mutually reasoned solutions. Again, both sides have lost. A specific approach to resolving intergroup conflict is outlined in the next chapter on organization development. Thus, conflict affecting organizations can occur in individuals, between individuals, and between groups. Conflicts within work groups are often caused by struggles over control, status, and scarce resources. Conflicts between groups in organizations have similar origins. The constructive resolution of such conflicts can most often be achieved through a rational process of problem solving, coupled with a willingness to explore issues and alternatives and to listen to each other. Conflict is not always destructive, it may be a motivator. When it is destructive, however, managers need to understand and do something about it. A rational process for dealing with the conflict should be programmed. Such a process should include a planned action response on the part of the manager or the organization, rather than relying on a simple reaction or a change that occurs without specific action by management. Conflict resolution

When personal conflict leads to frustration and loss of efficiency, counseling may prove to be a helpful antidote. Although few organizations can afford the luxury of having professional counselors on the staff, given some training, managers may be able to perform this function. Nondirective counseling, or "listening with understanding", is little more than being a good listener something every manager should be. Sometimes the simple process of being able to vent one's feelings that is, to express them to a concerned and understanding listener, is enough to relieve frustration and make it possible for the frustrated individual to advance to a problem-solving frame of mind, better able to cope with a personal difficulty that is affecting his work adversely. The nondirective approach is one effective way for managers to deal with frustrated subordinates and co-workers. There are other more direct and more diagnostic ways that might be used in appropriate circumstances. The great strength of the nondirective approach (nondirective counseling is based on the client-centered therapy of Carl Rogers), however, lies in its simplicity, its effectiveness, and the fact that it deliberately avoids the manager-counselor's diagnosing and interpreting emotional problems, which would call for special psychological training. No one has ever been harmed by being listened to sympathetically and understandingly. On the contrary, this approach has helped many people to cope with problems that were interfering with their effectiveness on the job. Strategies for Managing Group Conflicts

Avoidance - a management strategy which includes non attention or creating a total separation of the combatants or a partial separation that allows limited interaction Smoothing - technique which stresses the achievement of harmony between disputants Dominance or Power Intervention - the imposition of a solution by higher management, other than the level at which the conflict exists Compromise - strategy that seeks a resolution which satisfies at least part of the each party's position

Confrontation - strategy featuring a thorough and frank discussion of the sources and types of conflict and achieving a resolution that is in the best interest of the group, but that may be at the expense of one or all of the conflicting parties

A trained conflict resolver can begin with an economical intervention, such as getting group members to clarify and reaffirm shared goals. If necessary, he or she moves through a systematic series of interventions, such as testing the members' ability and willingness to compromise; resorting to confrontation, enforced counseling, and/or termination as last resorts.

TOPIC 2: INTRODUCTION TO ORGANIZATIONAL COMMUNICATION

Communication is the process by which a message or information is exchanged from a sender to a receiver. For example a production manager (sender) may send a message to a sales manager (receiver) asking for sales forecasts for the next 6 months so they can plan production levels. The sales manager would then reply (feedback) to the production manager with the appropriate figures. This is an example of internal communication, i.e. when communications occur between employees of a business. Communication therefore links together all the different activities involved in a business and ensures all employees are working towards the same goal and know exactly what they should be doing and by when. Effective communication is therefore fundamental to the success of a business. A business will of course need to communicate with people or organizations outside of the business. This is known as external communication. For example a marketing manager will need to tell customers of a new special pricing offers or the finance director may need to ask banks for a loan. Internal: Workers, Directors, Manager etc External: Customers Local community Suppliers Shareholders Government Banks etc The importance of good communication Good communication has many advantages for a business: strong communication: Motivates employees helps them feel part of the organization Easier to control and coordinate business activity prevents different parts of the organization going in opposite directions Makes decision making easier for managers decisions are based on more complete and accurate information Better communication with customers will increase sales Improve relationships with stake holders such as suppliers and possibly lead to more reliable delivery Improves chances of obtaining finance e.g. keeping the bank up-to-date about how the business is doing

Communication Skills Effective communication is all about conveying your messages to other people clearly and unambiguously. It's also about receiving information that others are sending to you, with as little distortion as possible.

Doing this involves effort from both the sender of the message and the receiver. And it's a process that can be fraught with errors, with messages muddled by the sender, or misinterpreted by the recipient. When this isn't detected, it can cause tremendous confusion, wasted effort and missed opportunity. In fact, communication is only successful when both the sender and the receiver understand the same information as a result of the communication. By successfully getting your message across, you convey your thoughts and ideas effectively. When not successful, the thoughts and ideas that you actually send do not necessarily reflect what you think, causing a communications breakdown and creating roadblocks that stand in the way of your goals both personally and professionally. In a recent survey of recruiters from companies with more than 50,000 employees, communication skills were cited as the single more important decisive factor in choosing managers. The survey, conducted by the University of Pittsburghs Katz Business School, points out that communication skills, including written and oral presentations, as well as an ability to work with others, are the main factor contributing to job success. In spite of the increasing importance placed on communication skills, many individuals continue to struggle, unable to communicate their thoughts and ideas effectively whether in verbal or written format. This inability makes it nearly impossible for them to compete effectively in the workplace, and stands in the way of career progression. Being able to communicate effectively is therefore essential if you want to build a successful career. To do this, you must understand what your message is, what audience you are sending it to, and how it will be perceived. You must also weigh-in the circumstances surrounding your communications, such as situational and cultural context. Communication process and its barriers Problems with communication can pop-up at every stage of the communication process (which consists of the sender, encoding, the channel, decoding, the receiver, feedback and the context see the diagram below). At each stage, there is the potential for misunderstanding and confusion.

To be an effective communicator and to get your point across without misunderstanding and confusion, your goal should be to lessen the frequency of problems at each stage of this process, with clear, concise, accurate, well-planned communications. We follow the process through below: Source As the source of the message, you need to be clear about why you're communicating, and what you want to communicate. You also need to be confident that the information you're communicating is useful and accurate. Message The message is the information that you want to communicate. Encoding This is the process of transferring the information you want to communicate into a form that can be sent and correctly decoded at the other end. Your success in encoding depends partly on your ability to

convey information clearly and simply, but also on your ability to anticipate and eliminate sources of confusion (for example, cultural issues, mistaken assumptions, and missing information.) A key part of this knows your audience: Failure to understand who you are communicating with will result in delivering messages that are misunderstood. Channel Messages are conveyed through channels, with verbal channels including face-to-face meetings, telephone and videoconferencing; and written channels including letters, emails, memos and reports. Different channels have different strengths and weaknesses. For example, it's not particularly effective to give a long list of directions verbally, while you'll quickly cause problems if you give someone negative feedback using email. Decoding Just as successful encoding is a skill, so is successful decoding (involving, for example, taking the time to read a message carefully, or listen actively to it.) Just as confusion can arise from errors in encoding, it can also arise from decoding errors. This is particularly the case if the decoder doesn't have enough knowledge to understand the message. Receiver Your message is delivered to individual members of your audience. No doubt, you have in mind the actions or reactions you hope your message will get from this audience. Keep in mind, though, that each of these individuals enters into the communication process with ideas and feelings that will undoubtedly influence their understanding of your message, and their response. To be a successful communicator, you should consider these before delivering your message, and act appropriately. Feedback Your audience will provide you with feedback, as verbal and nonverbal reactions to your communicated message. Pay close attention to this feedback, as it is the only thing that can give you confidence that your audience has understood your message. If you find that there has been a misunderstanding, at least you have the opportunity to send the message a second time. Context The situation in which your message is delivered is the context. This may include the surrounding environment or broader culture (corporate culture, international cultures, and so on). Removing Communication Barriers To deliver your messages effectively, you must commit to breaking down the barriers that exist within each of these stages of the communication process. Lets begin with the message itself. If your message is too lengthy, disorganized, or contains errors, you can expect the message to be misunderstood and misinterpreted. Use of poor verbal and body language can also confuse the message. Barriers in context tend to stem from senders offering too much information too fast. When in doubt here, less is oftentimes more. It is best to be mindful of the demands on other peoples time, especially in todays ultra-busy society. Once you understand this, you need to work to understand your audiences culture, making sure you can converse and deliver your message to people of different backgrounds and cultures within your own organization, in your country and even abroad. It is the spoken, oral, and unwritten way of communicating. It makes use of words, vocabulary, numbers and symbols and is organized in sentences. Verbal communication This communication skill is not reserved for the selected few. It is an ability that each and every one should develop to improve relationships and interactions.

Everyone's mind is forever having thoughts and they are primarily in pictures and words. Words spoken affect your life as well as others. They have the power to create emotions and move people to take action. When you communicate clearly, you activate your mind and that of others and you stimulate creativity. You create your reality with your senses, the eyes, ears and feelings and words and symbols are used to create the meanings. This is why you are encouraged to read and watch informative materials, listen to motivational audio programs and attend classes or seminars that relate to your line of work or objectives. Positive and uplifting spoken words motivate and inspire. Written communication Written communication has great significance in todays business world. It is an innovative activity of the mind. Effective written communication is essential for preparing worthy promotional materials for business development. Speech came before writing. But writing is more unique and formal than speech. Effective writing involves careful choice of words, their organization in correct order in sentences formation as well as cohesive composition of sentences. Also, writing is more valid and reliable than speech. But while speech is spontaneous, writing causes delay and takes time as feedback is not immediate. Advantages of Written Communication Written communication helps in laying down apparent principles, policies and rules for running of an organization. It is a permanent means of communication. Thus, it is useful where record maintenance is required. It assists in proper delegation of responsibilities. While in case of oral communication, it is impossible to fix and delegate responsibilities on the grounds of speech as it can be taken back by the speaker or he may refuse to acknowledge. Written communication is more precise and explicit. Effective written communication develops and enhances an organizations image. It provides ready records and references. Legal defenses can depend upon written communication as it provides valid records. Disadvantages of Written Communication Written communication does not save upon the costs. It costs huge in terms of stationery and the manpower employed in writing/typing and delivering letters. Also, if the receivers of the written message are separated by distance and if they need to clear their doubts, the response is not spontaneous. Written communication is time-consuming as the feedback is not immediate. The encoding and sending of message takes time. Effective written communication requires great skills and competencies in language and vocabulary use. Poor writing skills and quality have a negative impact on organizations reputation. Too much paper work and e-mails burden is involved.

Nonverbal Communication Skills

Good communication is the foundation of successful relationships, both personally and professionally. But we communicate with much more than words i.e. through our behaviours. In fact, research shows

that the majority of our communication is nonverbal. Nonverbal communication, or body language, includes our facial expressions, gestures, eye contact, posture, and even the tone of our voice. The ability to understand and use nonverbal communication is powerful tools that will help you connect with others, express what you really mean, navigate challenging situations, and build better relationships at home and work. The power of nonverbal communication and body language Nonverbal communication, or body language, is a vital form of communication. When we interact with others, we continuously give and receive countless wordless signals. All of our nonverbal behaviors the gestures we make, the way we sit, how fast or how loud we talk, how close we stand, how much eye contact we makesend strong messages. The way you listen, look, move, and react tell the other person whether or not you care and how well youre listening. The nonverbal signals you send either produce a sense of interest, trust, and desire for connectionor they generate disinterest, distrust, and confusion. Five roles of non-verbal cues Repetition: they can repeat the message the person is making verbally Contradiction: they can contradict a message the individual is trying to convey Substitution: they can substitute for a verbal message. For example, a person's eyes can often convey a far more vivid message than words can often do. Complementing: they may add to or complement a verbal message. A boss who pats a person on the back in addition to giving praise can increase the impact of the message Accenting: they may accent or underline a verbal message. Pounding the table, for example, can underline a message. Expressing behaviour: Our body language is the behaviour which means dissatisfaction, satisfaction etc. Nonverbal communication and body language in work-place relationships It takes more than words to create fulfilling, strong relationships. Nonverbal communication has a huge impact on the quality of our work-place relationships. Nonverbal communication skills improve relationships by helping us to: Accurately read other people, including the emotions theyre feeling and the unspoken messages theyre sending. Create trust and transparency in relationships by sending nonverbal signals that match up with your words. Respond with nonverbal cues that show others that you understand, notice, and care. Unfortunately, many people send confusing or negative nonverbal signals without even knowing it. When this happens, both connection and trust are lost in our relationships. Types of nonverbal communication and body language There are many different types of nonverbal communication. Together, the following nonverbal signals and cues communicate your interest and investment in others. Facial expressions The human face is extremely expressive, able to express countless emotions without saying a word. And unlike some forms of nonverbal communication, facial expressions are universal. The facial expressions for happiness, sadness, anger, surprise, fear, and disgust are the same across cultures.

Body movements and posture Consider how your perceptions of people are affected by the way they sit, walk, stand up, or hold their head. The way you move and carry yourself communicates a wealth of information to the world. This type of nonverbal communication includes your posture, bearing, stance, and subtle movements. Gestures Gestures are woven into the fabric of our daily lives. We wave, point, beckon, and use our hands when were arguing or speaking animatedlyexpressing ourselves with gestures often without thinking. However, the meaning of gestures can be very different across cultures and regions, so its important to be careful to avoid misinterpretation. Eye contact Since the visual sense is dominant for most people, eye contact is an especially important type of nonverbal communication. The way you look at someone can communicate many things, including interest, affection, hostility, or attraction. Eye contact is also important in maintaining the flow of conversation and for gauging the other persons response. Touch We communicate a great deal through touch. Think about the messages given by the following: a firm handshake, a timid tap on the shoulder, a warm bear hug, a reassuring pat on the back, a patronizing pat on the head, or a controlling grip on your arm. Space Have you ever felt uncomfortable during a conversation because the other person was standing too close and invading your space? We all have a need for physical space, although that need differs depending on the culture, the situation, and the closeness of the relationship. You can use physical space to communicate many different nonverbal messages, including signals of intimacy, aggression, dominance, or affection. Voice We communicate with our voices, even when we are not using words. Nonverbal speech sounds such as tone, pitch, volume, inflection, rhythm, and rate are important communication elements. When we speak, other people read our voices in addition to listening to our words. These nonverbal speech sounds provide subtle but powerful clues into our true feelings and what we really mean. Think about how tone of voice, for example, can indicate sarcasm, anger, affection, or confidence. PROBLEM-SOLVING AND DECISION-MAKING Problem solving and decision-making are important skills for business and life. Problem-solving often involves decision-making, and decision-making is especially important for management and leadership. There are processes and techniques to improve decision-making and the quality of decisions. Decisionmaking is more natural to certain personalities, so these people should focus more on improving the quality of their decisions. People that are less natural decision-makers are often able to make quality assessments, but then need to be more decisive in acting upon the assessments made. Problem-solving and decisionmaking are closely linked, and each requires creativity in identifying and developing options, for which the brainstorming technique is particularly useful. Good decision-making requires a mixture of skills: creative development and identification of options, clarity of judgment, firmness of decision, and effective implementation. For group problem-solving and decision-making, or when a consensus is required, workshops help, within which you can incorporate these tools and process as appropriate. Here are some useful methods for effective decision-making and problem-solving: First a simple step-by-step process for effective decision-making and problem-solving. Much of what managers and supervisors do is solve problems and make decisions. New managers and supervisors, in particular, often make decisions and solve problems by reacting to them. They are "under the gun", stressed and very short of time. Consequently, when they encounter a new problem or decision they must make, they react with a decision that seemed to work before. It's easy with this approach to get

stuck in a circle of solving the same problem over and over again. Therefore, as a new manager or supervisor, get used to an organized approach to problem solving and decision making. The following basic guidelines will get you started. Decision making Good decision making is an essential skill for career success generally, and effective leadership particularly. If you can learn to make timely and well-considered decisions, then you can often lead your team to spectacular and well-deserved success. However, if you make poor decisions, your team risks failure and your time as a leader will, most likely, be brutally short. Simple processes for decision-making 1. 2. 3. 4. 5. 6. Define and clarify the issue - does it warrant action? If so, now? Is the matter urgent, important or both. Gather all the facts and understand their causes. Think about or brainstorm possible options and solutions. Consider and compare the pros and cons of each option - consult if necessary - it probably will be. Select the best option - avoid vagueness or 'foot in both camps' compromise. Explain your decision to those involved and affected, and follow up to ensure proper and effective implementation.

The following decision-making maxims will help to reinforce the above decision-making process whether related to problem-solving or not. "We know what happens to people who stay in the middle of the road. They get run down." (Aneurin Bevan) "In any moment of decision the best thing you can do is the right thing, the next best thing is the wrong thing, and the worst thing you can do is nothing." (Attributed to Theodore Roosevelt) JFDI - Just Frigging! Do it (polite version). The decision-makers motto There are usually several right answers when you are faced with a complex decision. When you've found the best solution you can find, get on with it, make it work, and it most probably will. Pros and cons decision-making method Another simple process for decision-making is the pros and cons list. Pro means 'for', and con means 'against'. In other words, advantages and disadvantages. This method also applies to all sorts of problem-solving where issues and implications need to be understood and a decision has to be made. Some decisions are a simple matter of whether to make a change or not, such as moving, taking a new job, or buying something, selling something, replacing something, etc. Other decisions involve number of options, and are concerned more with how to do something, involving a number of choices. Basic Guidelines to Problem Solving NB: It might be more your nature to view a "problem" as an "opportunity". Therefore, you might substitute "problem" for "opportunity" in the following guidelines. 1. Define the problem - This is often where people struggle. They react to what they think the problem is. Instead, seek to understand more about why you think there's a problem. 2. Look at potential causes for the problem 3. Identify alternatives for approaches to resolve the problem 4. Select an approach to resolve the problem

5. Plan the implementation of the best alternative (this is your action plan) 6. Monitor implementation of the plan 7. Verify if the problem has been resolved or not

TOPIC 5: ORGANIZATIONAL STRUCTURES AND DESIGNS

Managers must make choices about how to group people together to perform their work. Five common approaches functional, divisional, matrix, team, and networkinghelp managers determine departmental groupings (grouping of positions into departments). The five structures are basic organizational structures, which are then adapted to an organization's needs. All five approaches combine varying elements of mechanistic and organic structures. For example, the organizational design trend today incorporates a minimum of bureaucratic features and displays more features of the organic design with a decentralized authority structure, fewer rules and procedures, and so on. Functional structure The functional structure groups positions into work units based on similar activities, skills, expertise, and resources (see Figure 1 for a functional organizational chart). Production, marketing, finance, and human resources are common groupings within a functional structure.

Figure 1The functional structure. As the simplest approach, a functional structure features well-defined channels of communication and authority/responsibility relationships. Not only can this structure improve productivity by minimizing duplication of personnel and equipment, but it also makes employees comfortable and simplifies training as well. But the functional structure has many downsides that may make it inappropriate for some organizations. Here are a few examples: The functional structure can result in narrowed perspectives because of the separateness of different department work groups. Managers may have a hard time relating to marketing, for example, which is often in an entirely different grouping. As a result, anticipating or reacting to changing consumer needs may be difficult. In addition, reduced cooperation and communication may occur. Decisions and communication are slow to take place because of the many layers of hierarchy. Authority is more centralized.

The functional structure gives managers experience in only one fieldtheir own. Managers do not have the opportunity to see how all the firm's departments work together and understand their interrelationships and interdependence. In the long run, this specialization results in executives with narrow backgrounds and little training handling top management duties.

Divisional structure Because managers in large companies may have difficulty keeping track of all their company's products and activities, specialized departments may develop. These departments are divided according to their organizational outputs. Examples include departments created to distinguish among production, customer service, and geographical categories. This grouping of departments is called divisional structure (see Figure 2 ). These departments allow managers to better focus their resources and results. Divisional structure also makes performance easier to monitor. As a result, this structure is flexible and responsive to change.

Figure 2The divisional structureDisney in the early 1990s. However, divisional structure does have its drawbacks. Because managers are so specialized, they may waste time duplicating each other's activities and resources. In addition, competition among divisions may develop due to limited resources. Matrix structure The matrix structure combines functional specialization with the focus of divisional structure (see Figure 3 This structure uses permanent cross-functional teams to integrate functional expertise with a divisional focus

Figure 3The matrix structure. Employees in a matrix structure belong to at least two formal groups at the same timea functional group and a product, program, or project team. They also report to two bossesone within the functional group and the other within the team. This structure not only increases employee motivation, but it also allows technical and general management training across functional areas as well. Potential advantages include Better cooperation and problem solving. Increased flexibility. Better customer service. Better performance accountability. Improved strategic management.

Predictably, the matrix structure also has potential disadvantages. Here are a few of this structure's drawbacks: The two-boss system is susceptible to power struggles, as functional supervisors and team leaders vie with one another to exercise authority. Members of the matrix may suffer task confusion when taking orders from more than one boss. Teams may develop strong team loyalties that cause a loss of focus on larger organization goals. Adding the team leaders, a crucial component, to a matrix structure can result in increased costs.

Team structure Team structure organizes separate functions into a group based on one overall objective (see Figure 4 ). These cross-functional teams are composed of members from different departments who work together as needed to solve problems and explore opportunities. The intent is to break down functional barriers among departments and create a more effective relationship for solving ongoing problems.

Figure 4The team structure. The team structure has many potential advantages, including the following: Intradepartmental barriers break down. Decision-making and response times speed up. Employees are motivated. Levels of managers are eliminated. Administrative costs are lowered. Conflicting loyalties among team members. Time-management issues. Increased time spent in meetings.

The disadvantages include:

Managers must be aware that how well team members work together often depends on the quality of interpersonal relations, group dynamics, and their team management abilities. Network structure The network structure relies on other organizations to perform critical functions on a contractual basis (see Figure 5 ). In other words, managers can contract out specific work to specialists.

IMPORTANCE OF ORGANIZATIONAL STRUCTURES AND DESIGN The importance of an organizational structure involves assisting business owners, CEOs, and entrepreneurs to conceptualize, visualize, and construct a hierarchical system to be implemented into their organization. For example, the building blocks of an organizational structure include: a chain of command, span of control, departmentalization, distribution of authority, and organization height. 1. Chain of Command An organizational structure involves a chain of command which determines and defines: job positions, who makes the decisions, and who's accountable for various duties. Span of control determines and quantifies the actual amount of employees a manager supervises. Departments within an organization structure are sections of the structure divided into functional divisions (such as the Sales Department) relevant to specific tasks. Determining what activities, tasks, and talents are to be grouped to best achieve an origination's objective is called the departmentalization process. Distribution of authority determines if decision-making authority is concentrated among a few high-level figures commonly seen in bureaucratic organizations or is the authority shared and distributed throughout a variety of departments working closet to the their corresponding tasks. Organization Height Organization height defines how many departments, divisions, and layers there are between the highest levels and the lowest levels of an organization.

Span of Control

Departmentalization

Distribution of Authority

TOPIC 8: LEADERSHIP
LEADERSHIP AND MANAGEMENT Many people become confused over the roles and attributes between leadership and management. The following table attempts to define the differences to minimize any confusion. Leadership 1. 2. 3. 4. 5. 6. Leaders mostly work from an elected base Leadership continually thinks beyond the horizon Leadership is a quality Leadership provides vision Leadership deals with concepts Leadership exercises faith Management Managers are appointed to position Management strives to reach the horizon Management is a science and an art Management provides realistic perspectives Management relates to functions Management deals with facts

7. 8. 9. 10. 11. 12. 13. 14. 15. 16.

Leadership seeks for effectiveness Leadership challenges the status quo Leadership provides direction Leadership thrives on finding opportunity Leadership determines policy Leadership motivates people Leadership determines true culture Leadership embraces and adapts to change Leadership is about having confidence in people Leaders review position

Management strives for efficiency Management administers Management is concerned with control Management succeeds on accomplishment Management devises procedures Management provides structure for people Management follows true culture Management provides the process of change Management accountabilities defines performance

Management measures achievement

LEADERSHIP Leadership is a process whereby an individual or individuals influences a group of individuals to achieve a common goal. Interest in leadership increased during the early part of the twentieth century. Early leadership theories focused on what qualities distinguished between leaders and followers, while subsequent theories looked at other variables such as situational factors and skill levels. While many different leadership theories have emerged, most can be classified as one of eight major types: Trait Theory Assumptions People are born with inherited traits. Some traits are particularly suited to leadership. People who make good leaders have the right (or sufficient) combination of traits. Description Early research on leadership was based on the psychological focus of the day, which was of people having inherited characteristics or traits. Attention was thus put on discovering these traits, often by studying successful leaders, but with the underlying assumption that if other people could also be found with these traits, then they, too, could also become great leaders. Stodgily (1974) identified the following traits and skills as critical to leaders. Traits Adaptable to situations Alert to social environment Ambitious and achievement-orientated Assertive

Cooperative Decisive Dependable Dominant (desire to influence others) Energetic (high activity level) Persistent Self-confident Tolerant of stress Good communication Skill Willing to assume responsibility Conceptually skilled Creative Diplomatic and tactful Fluent in speaking Knowledgeable about group task Organized (administrative ability) Persuasive Socially skilled Clever (intelligent)

McCall and Lombardo (1983) researched both success and failure identified four primary traits by which leaders could succeed or 'derail':

Emotional stability and composure: Calm, confident and predictable, particularly when under stress. Admitting error: Owning up to mistakes, rather than putting energy into covering up. Good interpersonal skills: Able to communicate and persuade others without resort to negative or coercive tactics. Intellectual breadth: Able to understand a wide range of areas, rather than having a narrow (and narrow-minded) area of expertise.

Discussion There have been many different studies of leadership traits and they agree only in the general saintly qualities needed to be a leader. For a long period, inherited traits were sidelined as learned and situational factors were considered to be far more realistic as reasons for people acquiring leadership positions. Paradoxically, the research into twins who were separated at birth along with new sciences such as Behavioral Genetics have shown that far more is inherited than was previously supposed. Perhaps one day they will find a 'leadership gene'. GREAT-MANS THEORY Assumptions Leaders are born and not made. Great leaders will arise when there is a great need. Description

Early research on leadership was based on the study of people who were already great leaders. These people were often from the aristocracy, as few from lower classes had the opportunity to lead. This contributed to the notion that leadership had something to do with breeding. The idea of the Great Man also strayed into the mythic domain, with notions that in times of need, a Great Man would arise, almost by magic. This was easy to verify, by pointing to people such as Eisenhower and Churchill, let alone those further back along the timeline, even to Jesus, Moses, Mohammed and the Buddha. Discussion Gender issues were not on the table when the 'Great Man' theory was proposed. Most leaders were male and the thought of a Great Woman was generally in areas other than leadership. Most researchers were also male, and concerns about andocentric bias were a long way from being reality Behavioral Theory Assumptions Leaders can be made, rather than are born. Successful leadership is based in definable, learnable behavior. Description Behavioral theories of leadership do not seek inborn traits or capabilities. Rather, they look at what leaders actually do. If success can be defined in terms of describable actions, then it should be relatively easy for other people to act in the same way. This is easier to teach and learn then to adopt the more ephemeral 'traits' or 'capabilities'. Discussion Behavioral is a big leap from Trait Theory, in that it assumes that leadership capability can be learned, rather than being inherent. This opens the floodgates to leadership development, as opposed to simple psychometric assessment that sorts those with leadership potential from those who will never have the chance. A behavioral theory is relatively easy to develop, as you simply assess both leadership success and the actions of leaders. With a large enough study, you can then correlate statistically significant behaviors with success. You can also identify behaviors which contribute to failure, thus adding a second layer of understanding. Role Theory Assumptions People define roles for themselves and others based on social learning and reading. People form expectations about the roles that they and others will play. People subtly encourage others to act within the role expectations they have for them. People will act within the roles they adopt. Description We all have internal schema about the role of leaders, based on what we read, discuss and so on. We subtly send these expectations to our leaders, acting as role senders, for example through the balance of decisions we take upon ourselves and the decisions we leave to the leader. Leaders are influenced by these signals, particularly if they are sensitive to the people around them, and will generally conform to these, playing the leadership role that is put upon them by others. Within organizations, there is much formal and informal information about what the leader's role should be, including 'leadership values', culture, training sessions, modeling by senior managers, and so on. These and more (including contextual factors) act to shape expectations and behaviors around leadership.

Role conflict can also occur when people have differing expectations of their leaders. It also happens when leaders have different ideas about what they should be doing vs. the expectations that are put upon them. Discussion Role expectations of a leader can vary from very specific to a broad idea within which the leader can define their own style. Lewin's leadership styles

Description Kurt Lewin and colleagues did leadership decision experiments in 1939 and identified three different styles of leadership, in particular around decision-making. Autocratic In the autocratic style, the leader takes decisions without consulting with others. The decision is made without any form of consultation. In Lewin's experiments, he found that this caused the most level of discontent. An autocratic style works when there is no need for input on the decision, where the decision would not change as a result of input, and where the motivation of people to carry out subsequent actions would not be affected whether they were or were not involved in the decision-making. Democratic In the democratic style, the leader involves the people in the decision-making, although the process for the final decision may vary from the leader having the final say to them facilitating consensus in the group. Democratic decision-making is usually appreciated by the people, especially if they have been used to autocratic decisions with which they disagreed. It can be problematic when there are a wide range of opinions and there is no clear way of reaching an equitable final decision. Laissez-Faire The laissez-faire style is to minimize the leader's involvement in decision-making, and hence allowing people to make their own decisions, although they may still be responsible for the outcome. Laissez-faire works best when people are capable and motivated in making their own decisions, and where there is no requirement for a central coordination, for example in sharing resources across a range of different people and groups. Discussion In Lewin et alls experiments, he discovered that the most effective style was Democratic. Excessive autocratic styles led to revolution, whilst under a Laissez-faire approach, people were not coherent in their work and did not put in the energy that they did when being actively led. These experiments were actually done with groups of children, but were early in the modern era and were consequently highly influential. Situational Leadership Assumptions The best action of the leader depends on a range of situational factors. Style When a decision is needed, an effective leader does not just fall into a single preferred style, such as using transactional or transformational methods. In practice, as they say, things are not that simple.

Factors that affect situational decisions include motivation and capability of followers. This, in turn, is affected by factors within the particular situation. The relationship between followers and the leader may be another factor that affects leader behavior as much as it does follower behavior. The leaders' perception of the follower and the situation will affect what they do rather than the truth of the situation. The leader's perception of themselves and other factors such as stress and mood will also modify the leaders' behavior. Yukl (1989) seeks to combine other approaches and identifies six variables:

Subordinate effort: the motivation and actual effort expended. Subordinate ability and role clarity: followers knowing what to do and how to do it. Organization of the work: the structure of the work and utilization of resources. Cooperation and cohesiveness: of the group in working together. Resources and support: the availability of tools, materials, people, etc. External coordination: the need to collaborate with other groups.

Leaders here work on such factors as external relationships, acquisition of resources, managing demands on the group and managing the structures and culture of the group. Discussion Tannenbaum and Schmidt (1958) identified three forces that led to the leader's action: the forces in the situation, the forces in then follower and also forces in the leader. This recognizes that the leader's style is highly variable, and even such distant events as a family argument can lead to the displacement activity of a more aggressive stance in an argument than usual. Maier (1963) noted that leaders not only consider the likelihood of a follower accepting a suggestion, but also the overall importance of getting things done. Thus in critical situations, a leader is more likely to be directive in style simply because of the implications of failure. Path-Goal Theory of Leadership Description The Path-Goal Theory of Leadership was developed to describe the way that leaders encourage and support their followers in achieving the goals they have been set by making the path that they should take clear and easy. In particular, leaders: Clarify the path so subordinates know which way to go. Remove roadblocks that are stopping them going there. Increasing the rewards along the route.

Leaders can take a strong or limited approach in these. In clarifying the path, they may be directive or give vague hints. In removing roadblocks, they may scour the path or help the follower move the bigger blocks. In increasing rewards, they may give occasional encouragement or pave the way with gold. This variation in approach will depend on the situation, including the follower's capability and motivation, as well as the difficulty of the job and other contextual factors. House and Mitchell (1974) describe four styles of leadership: Supportive leadership Considering the needs of the follower, showing concern for their welfare and creating a friendly working environment. This includes increasing the follower's self-esteem and making the job more interesting. This approach is best when the work is stressful, boring or hazardous.

Directive leadership Telling followers what needs to be done and giving appropriate guidance along the way. This includes giving them schedules of specific work to be done at specific times. Rewards may also be increased as needed and role ambiguity decreased (by telling them what they should be doing). This may be used when the task is unstructured and complex and the follower is inexperienced. This increases the follower's sense of security and control and hence is appropriate to the situation. Participative leadership Consulting with followers and taking their ideas into account when making decisions and taking particular actions. This approach is best when the followers are expert and their advice is both needed and they expect to be able to give it. Achievement-oriented leadership Setting challenging goals, both in work and in self-improvement (and often together). High standards are demonstrated and expected. The leader shows faith in the capabilities of the follower to succeed. This approach is best when the task is complex. Discussion Leaders who show the way and help followers along a path are effectively 'leading'. This approach assumes that there is one right way of achieving a goal and that the leader can see it and the follower cannot. This casts the leader as the knowing person and the follower as dependent. It also assumes that the follower is completely rational and that the appropriate methods can be deterministically selected depending on the situation. Contingency Theory Assumptions The leader's ability to lead is contingent upon various situational factors, including the leader's preferred style, the capabilities and behaviors of followers and also various other situational factors. Description Contingency theories are a class of behavioral theory that contend that there is no one best way of leading and that a leadership style that is effective in some situations may not be successful in others. An effect of this is that leaders who are very effective at one place and time may become unsuccessful either when transplanted to another situation or when the factors around them change. This helps to explain how some leaders who seem for a while to have the 'Midas touch' suddenly appear to go off the boil and make very unsuccessful decisions. Discussion Contingency theory is similar to situational theory in that there is an assumption of no simple one right way. The main difference is that situational theory tends to focus more on the behaviors that the leader should adopt, given situational factors (often about follower behavior), whereas contingency theory takes a broader view that includes contingent factors about leader capability and other variables within the situation. Transactional Leadership Assumptions People are motivated by reward and punishment. Social systems work best with a clear chain of command. When people have agreed to do a job, a part of the deal is that they cede all authority to their manager.

The prime purpose of a subordinate is to do what their manager tells them to do. Style The transactional leader works through creating clear structures whereby it is clear what is required of their subordinates, and the rewards that they get for following orders. Punishments are not always mentioned, but they are also well-understood and formal systems of discipline are usually in place. The early stage of Transactional Leadership is in negotiating the contract whereby the subordinate is given a salary and other benefits, and the company (and by implication the subordinate's manager) gets authority over the subordinate. When the Transactional Leader allocates work to a subordinate, they are considered to be fully responsible for it, whether or not they have the resources or capability to carry it out. When things go wrong, then the subordinate is considered to be personally at fault, and is punished for their failure (just as they are rewarded for succeeding). The transactional leader often uses management by exception, working on the principle that if something is operating to defined (and hence expected) performance then it does not need attention. Exceptions to expectation require praise and reward for exceeding expectation, whilst some kind of corrective action is applied for performance below expectation. Whereas Transformational Leadership has more of a 'selling' style, Transactional Leadership, once the contract is in place, takes a 'telling' style. Discussion Transactional leadership is based in contingency, in that reward or punishment is contingent upon performance. Despite much research that highlights its limitations, Transactional Leadership is still a popular approach with many managers. Indeed, in the Leadership vs. Management spectrum, it is very much towards the management end of the scale. The main limitation is the assumption of 'rational man', a person who is largely motivated by money and simple reward, and hence whose behavior is predictable. The underlying psychology is Behaviorism, including the Classical Conditioning of Pavlov and Skinner's Operant Conditioning. These theories are largely based on controlled laboratory experiments (often with animals) and ignore complex emotional factors and social values. In practice, there is sufficient truth in Behaviorism to sustain Transactional approaches. This is reinforced by the supply-and-demand situation of much employment, coupled with the effects of deeper needs, as in Maslow's Hierarchy. When the demand for a skill outstrips the supply, then Transactional Leadership often is insufficient, and other approaches. Transformational Leadership Assumptions People will follow a person who inspires them. A person with vision and passion can achieve great things. The way to get things done is by injecting enthusiasm and energy. Style Working for a Transformational Leader can be a wonderful and uplifting experience. They put passion and energy into everything. They care about you and want you to succeed. Developing the vision Transformational Leadership starts with the development of a vision, a view of the future that will excite and convert potential followers. This vision may be developed by the leader, by the senior team or may emerge from a broad series of discussions. The important factor is the leader buys into it, hook, line and sinker.

Selling the vision The next step, which in fact never stops, is to constantly sell the vision. This takes energy and commitment, as few people will immediately buy into a radical vision, and some will join the show much more slowly than others. The Transformational Leader thus takes every opportunity and will use whatever works to convince others to climb on board the bandwagon. In order to create followers, the Transformational Leader has to be very careful in creating trust, and their personal integrity is a critical part of the package that they are selling. In effect, they are selling themselves as well as the vision. Finding the way forwards In parallel with the selling activity is seeking the way forward. Some Transformational Leaders know the way, and simply want others to follow them. Others do not have a ready strategy, but will happily lead the exploration of possible routes to the Promised Land. The route forwards may not be obvious and may not be plotted in details, but with a clear vision, the direction will always be known. Thus finding the way forward can be an ongoing process of course correction and the Transformational Leader will accept that there will be failures and blind canyons along the way. As long as they feel progress is being made, they will be happy. Leading the charge The final stage is to remain up-front and central during the action. Transformational Leaders are always visible and will stand up to be counted rather than hide behind their troops. They show by their attitudes and actions how everyone else should behave. They also make continued efforts to motivate and rally their followers, constantly doing the rounds, listening, soothing and enthusing. It is their unswerving commitment as much as anything else that keeps people going, particularly through the darker times when some may question whether the vision can ever be achieved. If the people do not believe that they can succeed, then their efforts will flag. The Transformational Leader seeks to infect and re-infect their followers with a high level of commitment to the vision. One of the methods the Transformational Leader uses to sustain motivation is in the use of ceremonies, rituals and other cultural symbolism. Small changes get big hurrahs, pumping up their significance as indicators of real progress. Overall, they balance their attention between action that creates progress and the mental state of their followers. Perhaps more than other approaches, they are people-oriented and believe that success comes first and last through deep and sustained commitment. Discussion Whilst the Transformational Leader seeks overtly to transform the organization, there is also a tacit promise to followers that they also will be transformed in some way, perhaps to be more like this amazing leader. In some respects, then, the followers are the product of the transformation. Transformational Leaders are often charismatic, but are not as narcissistic as pure Charismatic Leaders, who succeed through a belief in themselves rather than a belief in others. One of the traps of Transformational Leadership is that passion and confidence can easily be mistaken for truth and reality. Whilst it is true that great things have been achieved through enthusiastic leadership, it is also true that many passionate people have led the charge right over the cliff and into a bottomless chasm. Just because someone believes they are right, it does not mean they are right. Paradoxically, the energy that gets people going can also cause them to give up. Transformational Leaders often have large amounts of enthusiasm which, if relentlessly applied, can wear out their followers. Transformational Leaders also tend to see the big picture, but not the details, where the devil often lurks. If they do not have people to take care of this level of information, then they are usually doomed to fail. Finally, Transformational Leaders, by definition, seek to transform. When the organization does not need transforming and people are happy as they are, then such a leader will be frustrated. Like wartime leaders, however, given the right situation they come into their own and can be personally responsible for saving entire companies.

Inspirational Leadership Do you remember the last time you were inspired to do something great? Something that you didnt think you were capable of doing? When I think about inspirational leadership, I think of people in my life that pushed me beyond what I imagined and I was extremely thankful for it.

TOIC 4: ORGANISATIONAL CULTURE

There is an increase in the attention paid to organizational culture as an important determinant of organizational success. Many experts began to argue that developing a strong organizational culture is essential for success. While the link between organizational culture and organizational effectiveness is far from certain, there is no denying that each organization has a unique social structure and that these social structures drive much of the individual behavior observed in organizations. We will leave the question of the A single definition of organizational culture for it has proven to be very elusive. No one definition of organizational culture has emerged in the literature. One of the issues involving culture is that it is defined both in terms of its causes and effect. For example, these are the two ways in which cultures is often defined. 1. Outcomes- Defining culture as a manifest pattern of behavior- Many people use the term culture to describe patterns of cross individual behavioral consistency For example, when people say that culture is The way we do things around here, they are defining consistent way is in which people perform tasks, solve problems, resolve conflicts, treat customers, and treat employees. 2. Process- Defining culture as a set of mechanisms creating cross individual behavioral consistencyIn this case culture is defined as the informal values, norms, and beliefs that control how individuals and groups in an organization interact with each other and with people outside the organization. Both of these approaches are relevant to understanding culture. It is important to know on what types of behavior culture has greatest impact (outcomes) and how culture works to control the behavior of organizational members. We will address these two questions later in the module. Organizational culture is an idea in the field of organizational studies and management which describes the psychology, attitudes, experiences, beliefs and values (personal and cultural values) of an organization. It has been defined as the specific collection of values and norms that are shared by people and groups in an organization and that control the way they interact with each other and with stakeholders outside the organization. This definition continues to explain organizational values, also known as beliefs and ideas about what kinds of goals members of an organization should pursue and ideas about the appropriate kinds or standards of behavior organizational members should use to achieve these goals. From organizational values develop organizational norms, guidelines, or expectations that prescribe appropriate kinds of behavior by employees in particular situations and control the behavior of organizational members towards one another. Strong culture is said to exist where staff respond to stimulus because of their alignment to organizational values. In such environments, strong cultures help firms operate like well-oiled machines, cruising along with outstanding execution and perhaps minor tweaking of existing procedures here and there. Conversely, there is weak culture where there is little alignment with organizational values and control must be exercised through extensive procedures and bureaucracy. Innovative organizations need individuals who are prepared to challenge the status quobe it groupthink or bureaucracy, and also need procedures to implement new ideas effectively. EDGAR SCHEINS LEVELS OF CULTURE Edgar Schein, MIT Sloan School of Management professor, defines organizational culture as: A pattern of shared basic assumptions that the group learned 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. 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. His organizational model illuminates culture from the standpoint of the observer, described by three cognitive levels of organizational culture. At the first and most cursory level of Scheins model is organizational attributes that can be seen, felt and heard by the uninitiated observer - collectively known as artifacts. Included are the 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. The next level deals with the professed culture of an organizations members - the values. At this level, local and personal values are widely expressed within the organization. Organizational behavior at this level usually can be studied by interviewing the organizations membership and using questionnaires to gather attitudes about organizational membership. At the third and deepest level, the organizations tacit assumptions are found. These are 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 membership. 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. Surveys and casual interviews with organizational members cannot draw out these attributesrather much more indepth means is required to first identify then understand organizational culture at this level. Notably, culture at this level is the underlying and driving element often missed by organizational behaviorists. Using Scheins model, understanding paradoxical organizational behaviors becomes more apparent. For instance, an organization can profess highly aesthetic and moral standards at the second level of Scheins model while simultaneously displaying curiously opposing behavior 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. DETERMINANT OF ORGANIZATIONAL CULTURE The six major determinants of organizational culture are innovation and risk taking, attention and precision to detail, outcome orientation, People orientation, team orientation, aggressiveness and stability. The degree to which employees are motivated to be innovative and risk taking, degree to which they are expected to exhibit precision and attention to detail and to how much extent the management focuses on outcome, views of an individual or team determines the overall performance of an organization. Determinants are the causes, while dimensions are the components of OC. You may say, determinants are those which influence whereas dimensions are those which are influenced. Although OC refers to the internal environment of an organization, the nature of OC is determined by a variety of internal and external factors. One of the basis premises of organizational behavior is that outside environmental forces influence events within organizations. After acknowledging the dynamics of internal as well as external factors in this section, we will consider in greater detail the following seven internal factors. You will find these factors as determinants of OC in the following order: 1. Economic Condition 2. Leadership Style 3. Organizational Policies 4. Managerial Values 5. Organizational Structure 6. Characteristics of Members FORMAL COMPONENTS OF ORGANISATIONAL CULTURE 1. Mission/Vision The milestones to be reached Could be unrealistic 2. Policies

Statements designed to be guidelines to behavioral decision Policies, if not drafted properly can provide leeway 3. Procedures Methods of providing specific guidelines Can facilitate or create obstacles in smooth functioning 4. Rules Specific instructions for performing a task Rules could be a means or an end in themselves. 5. State of Organisational Development Organisation at young, growing, maturing, or mature stage of development State of organisational development has direct impact on work culture

Organizational culture, and cultural leadership One of the biggest obstacles in the way of the merging of two organizations is organizational culture. Each organization has its own unique culture and most often, when brought together, these cultures clash. When mergers fail employees point to issues such as identity, communication problems, human resources problems, ego clashes, and inter-group conflicts, which all fall under the category of cultural differences. One way to combat such difficulties is through cultural leadership. Organizational leaders must also be cultural leaders and help facilitate the change from the two old cultures into the one new culture. This is done through cultural innovation followed by cultural maintenance. Cultural innovation includes: Creating a new culture: recognizing past cultural differences and setting realistic expectations for change Changing the culture: weakening and replacing the old cultures Cultural maintenance includes: Integrating the new culture: reconciling the differences between the old cultures and the new one Embodying the new culture: Establishing, affirming, and keeping the new culture

Corporate culture versus organizational culture Corporate culture is the total sum of the values, customs, traditions, and meanings that make a company unique. Corporate culture is often called the character of an organization, since it embodies the vision of the companys founders. The values of a corporate culture influence the ethical standards within a corporation, as well as managerial behavior. Senior management may try to determine a corporate culture. They may wish to impose corporate values and standards of behavior that specifically reflect the objectives of the organization. In addition, there will also be an extant internal culture within the workforce. Work-groups within the organization have their own behavioral quirks and interactions which, to an extent, affect the whole system. Roger Harrisons fourculture typology, and adapted by Charles Handy, suggests that unlike organizational culture, corporate culture can be imported. For example, computer technicians will have expertise, language and behaviors gained independently of the organization, but their presence can influence the culture of the organization as a whole. Organizational culture and corporate culture are often used interchangeably but it is a mistake to state that they are different concepts. All corporations are also organizations but not all organizations are corporations. Organizations include religious institutions, not-for-profit groups, and government agencies. There is even the Canadian Criminal Code definition of organized crime as meaning a group comprised of three or more persons which has, as one of its primary activities or purposes, the commission of serious offences which likely results in financial gain. Corporations are organizations and are also legal entities. As Schein (2009), Deal & Kennedy (2000), Kotter (1992) and many others state, organizations often have very differing cultures as well as subcultures. . Functions of organizational culture 1. 2. Behavioral control Encourages stability

3.

Provides source of identity

Draw backs of culture 1. 2. 3. 4. Barrier to change and improvement Barrier to diversity Barrier to cross departmental and cross organizational cooperation Barrier to mergers and acquisitions

Organisational culture versus organizational climate: In management literature there is often ambiguity about the two concepts organisational culture and organisational climate. As explained earlier, organisational culture is a macro phenomenon which refers to the patterns of beliefs, assumptions, values, and behaviors reflecting commonality in people working together. However, organisational climate is a micro phenomenon and reflects how employees in an organisation feel about the characteristics and quality of culture like morale, goodwill, employee relations, job satisfaction, and commitment at the organisational, department or unit level. It refers to the psychological environment in which behaviors of organisational members occurs. It is a relatively persistent set of perceptions held by organisational members about the organisational culture. Another viewpoint about climate is that various variables get subsumed under the concept of climate, whereas has unique indicators like symbols, rites, myths, and stories.

NATURE OF ORGANISATIONAL CULTURE The culture of an organisation may reflect in various forms adopted by the organisation. These could be: The physical infrastructure Routine behaviors, language, ceremonies Gender equality, equity in payment Dominant values such as quality, efficiency and so on Philosophy that guides the organizations policies towards it employees and customers like customer first and customer is king, and the manner in which employees deal with customers. Types of Organizational Culture Organisational culture can vary in a number of ways. It is these variances that differentiate one organisation from the others. Some of the bases of the differentiation are presented below: 1. Strong versus weak culture: Organisational culture can be labeled as strong or weak based on sharedness of the core values among organizational members and the degree of commitment the members have to these core values. The higher the sharedness and commitment, the stronger the culture increases the possibility of behavior consistency amongst its members, while a weak culture opens avenues for each one of the members showing concerns unique to themselves. 2. Soft versus hard culture: Soft work culture can emerge in an organisation where the organisation pursues multiple and conflicting goals. In a soft culture the employees choose to pursue a few objectives which serve personal or sectional interests. A typical example of soft culture can be found in a number of public sector organizations in India where the management feels constrained to take action against employees to maintain high productivity. The culture is welfare oriented; people are held accountable for their mistakes but are not rewarded for good performance. Consequently, the employees consider work to be less important than personal and social obligations.

TOPIC 7: MOTIVATION IN ORGANIZATIONS

Knowing how and why to motivate employees is an important managerial skill. THE NATURE OF MOTIVATION IN ORGANISATIONS. Motivation is the set of forces that cause people to choose certain behaviors from among the many alternatives open to them. Motivation and Performance in Organizations An employee's performance typically is influenced by motivation, ability, and the work environment. Some deficiencies can be addressed by providing training or altering the environment, motivation problems are not as easily addressed. Motivation is important because of its significance as a determinant of performance and its intangible nature. HISTORICAL VIEWS OF MOTIVATION. Evolution can be traced from scientific management, through the human relations movement, to the human resource approach. Scientific management The assumptions of scientific management were that work is inherently unpleasant for most people and the money they earn is more important to employees than is the nature of the job they are performing. Human relations movement This school of thought emphasized the role of social processes in organizations and assumed that the need for belongingness and the need to feel useful are more important than money in motivating employees.

Human resource approach This view assumes that people want to contribute to organizational effectiveness and are able to make genuine contributions. The organization's responsibility is to create a work environment that makes full use of available human resources. The human resource approach guides most thinking about motivation today, but three integrative approaches conceptualize motivation more completely: need-based, process-based, and reinforcementbased approaches. NEED-BASED APPROACHES TO MOTIVATION Need-based approaches to motivation focus on what motivates employees to choose certain behaviors as shown on the following diagram.

Two need-based approaches are need hierarchies and the dual-structure approach. Need Hierarchies Two of the most popular need hierarchies are Abraham Maslow's hierarchy and Clayton Alderfer's ERG theory of motivation. Maslows hierarchy of needs assumes that people are motivated to satisfy five levels of needs: physiological, security, belongingness, esteem, and self-actualization

The hierarchical arrangement suggests that the five levels of needs are arranged in order of increasing importance, starting with physiological needs. According to the theory, when needs at one level are satisfied, they are no longer motivators and the individual "moves up" the hierarchy to satisfy needs at the next level. Maslow's view of motivation provides a logical framework for categorizing needs, but it does not supply a complete picture. ERG theory of motivation Alderfer developed the ERG theory of motivation in response to criticisms of Maslow's hierarchy. ERG stands for existence, relatedness, and growth needs ERG theory. Existence needs are satisfied by food and water pay fringe benefits and working conditions. Relatedness needs are satisfied by relationships with co workers, superiors family and friends. Growth needs cover the need to advance and develop.

As with Maslow's theory, assumes that motivated behavior follows a hierarchy, but it has two important differences: ERG theory suggests that more than one level of needs can cause motivation at the same time; ERG theory has a frustration-regression element that suggests that if needs remain unsatisfied at some high level; the individual will become frustrated, regress to a lower level, and begin to pursue lower-level needs again.

The dual-structure approach was developed by Frederick Herzberg and is often referred to as the two-factor theory. Herzberg's studies of accountants and engineers led him to suggest that entirely different sets of factors are associated with satisfaction and with dissatisfaction. Motivation factors, relating to the job itself, result in feelings ranging from satisfaction to no satisfaction. Hygiene factors, relating to the work environment, result in feelings ranging from dissatisfaction to no dissatisfaction. Acquired Needs. Other need-based perspectives on motivation focus on acquired needs: the needs for achievement, affiliation, and power. This approach is concerned not about the ordering of needs but rather about the needs themselves. David McCleland first identified the need for achievement, which reflects an individual's desire to do something more effectively than in the past. The need for power is the desire to be influential in a group and to control one's environment. PROCESS-BASED APPROACHES TO MOTIVATION. These approaches to motivation are concerned with how motivation takes place. They focus on why people choose certain behavioral options to fulfill their needs and how they evaluate their satisfaction after they have attained their goals. Two useful process-based approaches are expectancy theory and equity theory. Expectancy Theory Expectancy theory suggests that motivation is based on how much we want something and how likely we think we are to get it. The formal framework of expectancy theory was developed by Victor Vroom. This framework states basically that motivation plus effort leads to performance, which then leads to outcomes. According to this theory, three conditions must be met for individuals to exhibit motivated behavior: effort-to-performance expectancy must be greater than zero; performance-to-outcome expectancy must also be greater than zero; and

the sum of the valances for all relevant outcomes must be greater than zero.
Effort-to-performance expectancy is the individual's perception of the probability that effort will lead to high performance. This expectancy ranges from 0 to 1, with 1 being a strong belief that effort will lead to high performance. Performance-to-outcome expectancy is the individual's perception that performance will lead to a specific outcome. This expectancy ranges from 0 to 1. A high performance-to-outcome expectancy would be 1 or close to it. Outcomes are consequences of behavior. An individual may experience a variety of outcomes in an organizational setting. Each outcome has an associated valance, which is an index of how much an individual desires a particular outcome. An outcome that an individual wants has a positive valance. An outcome that the individual does not want has a negative valance. When the individual is indifferent to the outcome, the valance is zero.

Porter and Lawler extended the basic expectancy model by suggesting that high performance may cause high satisfaction. When performance results in various extrinsic and intrinsic rewards, the individual evaluates the equity of these various rewards relative to the effort expended and the level of performance attained. The individual is satisfied if the rewards relative to the effort expended and the level of performance attained. The individual is satisfied if the rewards are felt to be fair. Nadler and Lawler suggest how managers can apply the basic ideas of expectancy theory. Managers should first determine the outcomes each employee is likely to want. Then they should decide what kinds and levels of performance are needed to meet organizational goals, making sure that the desired levels of performance are attainable. Managers then need to ensure that desired outcomes and desired performance are linked. Finally, the rewards need to be large enough, and the total system needs to be equitable. Equity Theory Equity theory, developed by J. Stacy Adams, suggests that once an individual has chosen an action that is expected to satisfy his or her needs, the individual assesses the equity or fairness of the outcome. Equity is an individual's beliefs that he or she is being treated fairly relative to the treatment of others. Three attitudes are possible: an individual may feel equitably rewarded, under rewarded, or over rewarded. When individuals feel under rewarded or over rewarded, they will do something to reduce the inequity. The single most important thing to remember about equity theory is that if rewards are to motivate employees, they must be perceived as being equitable and fair. REINFORCEMENT-BASED APPROACHES TO MOTIVATION. These approaches to motivation explain the role of rewards as they cause behavior to change or remain the same. Behavior that results in rewarding consequences is likely to be repeated. Expectancy theory and reinforcement theory are similar in that both consider the processes by which an individual chooses behaviors in a particular situation. However, expectancy theory focuses more on behavior choices, and reinforcement theory focuses more on the consequences of those choices. Reinforcement Contingencies. Reinforcement contingencies are the possible outcomes that an individual may experience as a result of his or her choice of behavior. There are four of these: positive reinforcement, avoidance, punishment, and extinction. Positive reinforcement is a reward or a positive outcome after a desired behavior is performed; it serves to strengthen behavior. Avoidance occurs when the individual chooses a behavior to avoid unpleasant consequences; it can strengthen desired behavior. Punishment is unpleasant consequences used to weaken undesired behavior. Extinction is ending undesired behavior by ignoring and not reinforcing it. Providing Reinforcement There are four approaches to providing reinforcement. A fixed-interval schedule provides reinforcement at fixed intervals of time, regardless of behavior. A variable-interval schedule provides reinforcement at varying time intervals. A fixed-ration schedule gives reinforcement after a fixed number of behaviors, regardless of the time that has elapsed between behaviors. and is the most powerful schedule for maintaining desired behaviors.

A variable-ration schedule varies the number of behaviors needed for each reinforcement

OTHER APPROACHES TO MOTIVATION IN ORGANISATIONS. Goal Setting Theory. This approach suggests that managers and subordinates should set goals for the individual on a regular basis and that rewards should be tied to the accomplishment of goals. Research support for goal-setting theory is more consistently favorable than any other single approach to employee motivation. ENHANCING MOTIVATION IN ORGANISATIONS. Managers may influence motivation through the organization's reward systems, or they may adopt specific interventions derived from one or more theories. Organizational Reward Systems. 1. People are motivated by a variety of things. INTRINSIC REWARD is the good feeling you have when you have done a good job for example a feeling of job satisfaction, challenge victory fulfillment etc. EXTRINSIC REWARD is something given to you by someone else as recognition for good works and include pay increases, praise, and promotions. The organization's reward system is the basic structural mechanism that an organization uses to motivate workers. The reward system includes the formal and informal mechanisms by which employee performance is defined, evaluated, and rewarded. An organization's primary purpose in giving rewards is to influence employee behavior. Effects of organizational rewards: Organizational rewards can affect individual attitudes, behaviors, and motivation. Edward Lawler describes four major generalizations about employee attitudes toward rewards. Employee satisfaction is affected by comparison of the rewards they receive with those received by others. Employees often misperceive the rewards received by others. The system recognizes that different people have different needs and choose different ways to satisfy those needs. Performance-based systems:

Organizational reward systems have traditionally either a fixed salary or hourly rate system or an incentive system. Fixed rewards can be tied directly to performance through merit pay systems, whereby people get different pay raises at the end of the year, depending on their overall job performance. Many organizations are experimenting with various kinds of incentive systems, which attempt to reward employees in proportion to their accomplishments. Four popular incentive systems include profit sharing, gain sharing, lump-sum bonuses, and pay for knowledge. Interventions for enhancing motivation Three motivational interventions are behavior modification, the modified workweek, and work redesign. Behavior modification is a technique for applying the concepts of reinforcement theory in organizational settings. A modified workweek can be any work schedule that does not conform to a traditional eight-hours-a-day, five-days-a-week design. Some alternatives include the compressed workweek, flexible work schedule, working at home and job sharing.

IMPORTANCE OF MOTIVATION IN ORGANIZATIONS 1. Puts human resources into action Every concern requires physical, financial and human resources to accomplish the goals. It is through motivation that the human resources can be utilized by making full use of it. This can be

done by building willingness in employees to work. This will help the enterprise in securing best possible utilization of resources. 2. Improves level of efficiency of employees The level of a subordinate or a employee does not only depend upon his qualifications and abilities. For getting best of his work performance, the gap between ability and willingness has to be filled which helps in improving the level of performance of subordinates. This will result intoa. b. c. 3. Increase in productivity, Reducing cost of operations, and Improving overall efficiency.

Leads to achievement of organizational goals The goals of an enterprise can be achieved only when the following factors take place:a. b. c. d. There is best possible utilization of resources, There is a co-operative work environment , The employees are goal-directed and they act in a purposive manner, Goals can be achieved if co-ordination and co-operation takes place simultaneously which can be effectively done through motivation.

4.

Builds friendly relationship Motivation is an important factor which brings employees satisfaction. This can be done by keeping into mind and framing an incentive plan for the benefit of the employees. This could initiate the following things: a. b. c. Monetary and non-monetary incentives, Promotion opportunities for employees, Disincentives for inefficient employees.

In order to build a cordial, friendly atmosphere in a concern, the above steps should be taken by a manager. This would help in: A. Effective co-operation which brings stability, B. Industrial dispute and unrest in employees will reduce, C. The employees will be adaptable to the changes and there will be no resistance to the change, D. This will help in providing a smooth and sound concern in which individual interests will coincide with the organizational interests, E. This will result in profit maximization through increased productivity. Leads to stability of work force Stability of workforce is very important from the point of view of reputation and goodwill of a concern. The employees can remain loyal to the enterprise only when they have a feeling of participation in the management. The skills and efficiency of employees will always be of advantage to employees as well as employees. This will lead to a good public image in the market which will attract competent and qualified people into a concern. As it is said, Old is gold which suffices with the role of motivation here, the older the people, more the experience and their adjustment into a concern which can be of benefit to the enterprise. From the above discussion, we can say that motivation is an internal feeling which can be understood only by manager since he is in close contact with the employees. Needs, wants and desires are inter-related and they are the driving force to act. These needs can be understood by the manager and he can frame motivation plans accordingly. We can say that motivation therefore is a continuous process since motivation process is based on needs which are unlimited. The process has to be continued throughout.

WE can summarize by saying that motivation is important both to an individual and a business. Motivation is important to an individual as: 1. 2. 3. 4. Motivation will help him achieve his personal goals. If an individual is motivated, he will have job satisfaction. Motivation will help in self-development of individual. An individual would always gain by working with a dynamic team.

Similarly, motivation is important to a business as:

1. The more motivated the employees are, the more empowered the team is.
2. 3. 4. The more is the team work and individual employee contribution, more profitable and successful is the business. During period of amendments, there will be more adaptability and creativity. Motivation will lead to an optimistic and challenging attitude at work place

TOPIC 9: STRESS MANAGEMENT

Job stress in organizations is widespread. About half of all American workers feel the pressures of jobrelated stress. Extensive research shows that excessive job stress can adversely affect the emotional and physical health of workers. The result is decreased productivity, less satisfied, and less healthy workers. We will first discuss the symptoms and causes of stress, and then explore ways in which managers might reduce stress in themselves and their subordinates. Definition of Stress Stress is an imprecise term. It is usually defined in terms of the internal and external conditions that create stressful situations, and the symptoms that people experience when they are stressed. McGrath (1976) proposed a definition based on the conditions necessary for stress. So there is a potential for stress when an environmental situation is perceived as presenting a demand that threatens to exceed the person's capabilities and resources for meeting it, under conditions where he expects a substantial differential in the rewards and costs from meeting the demand versus not meeting it. (p. 1,352) McGrath's definition implies that the degree of stress is correlated with a persons perceived inability to deal with an environmental demand. This would lead to the conclusion that a person's level of stress depends on their self-perceived abilities and self-confidence. Stress is correlated with a person's fear of failure. Arnold and Feldman (1986) define stress as "the reactions of individuals to new or threatening factors in their work environment." (p. 459). Since our work environments often contain new situations, this definition suggests that stress in inevitable. This definition also highlights the fact that reactions to stressful situations are individualized, and can result in emotional, perceptual, behavioral, and physiological changes. Williams and Huber (1986) define stress as "a psychological and physical reaction to prolonged internal and/or environmental conditions in which and individual's adaptive capabilities are overextended." (p. 243). They argue that stress is an adaptive response to a conscious or unconscious threat. Like McGrath, they point out that stress is a result of a "perceived" threat, and is not necessarily related to actual environmental conditions. The amount of stress that is produced by a given situation depends upon one's perception of the situation, not the situation itself. In other words, stress is a relativistic phenomenon. In Gestalt Therapy Verbatim (Real People Press, 1969), Perls proposes a more general definition, where stress is a manifestation of thinking about the future. Anxiety is created by focusing attention away from the "here and now". It is created by expectations of the future--the tension between the now and the later. According to Perls, there is no difference between good stress and bad stress. They are both created by thinking about the future. When anxiety finds an outlet, we say that the stress was motivating; when it doesn't, we call it debilitating.

French, Kast, and Rosenzweig (1985) also emphasized the idea that stress itself is not necessarily bad. "The term stress can be considered neutral with the words distress and eustress used for designating bad and good effects." (p. 707) They propose a model that defines an optimum range of stress in terms of its effect on performance. Stress levels that exceed an optimum level result in decreased performance and eventual burnout. Stress levels below a minimum level result in decreased performance and "rust-out". Symptoms of Stress Selye (1946) was the first to describe the phases that the body goes through in response to a threat. The general adaptation syndrome model states that the body passes through three stages. The first stage is an alarm reaction. The body prepares for a potential emergency. Digestion slows down, the heart beats faster, blood vessels dilate, blood pressure rises, and breathing becomes rapid and deep. All bodily systems work together to provide maximum energy for fight or flight. The second stage is resistance. If the stress continues, the body builds up a tolerance to its effects. The body becomes habituated to the effects of the stressor, however, the bodies adaptive energies are being used as a shield against the stressor. The third stage is exhaustion. When the body's adaptive energies are depleted, the symptoms of the alarm reaction reappear, and the stress manifests itself as an illness, such as ulcers, heart ailments, and high blood pressure. During the first or second stages, the removal of the stressor will eliminate the symptoms. Ivancevich and Matteson (1980) point out that during the early days of our evolution, we needed the fightor-flight response for our survival. "The problem we encounter today is that the human nervous system still responds the same way to environmental stressors, although the environment is radically different. The tigers are gone and with them the appropriateness of the fight-or-flight response." (p. 10) Reitz (1987) writes that individuals in modern society often substitute other psychological reactions for flight-or-flight. Substitutions for fighting include negativism, expression of boredom, dissatisfaction, irritability, anger over unimportant matters, and feelings of persecution. Substitutions for fleeing include apathy, resignation, fantasy, forgetfulness, inability to concentrate, procrastination, and inability to make decisions. (p. 239) Short-term stress has served a useful purpose in our survival. Long-term stress, however, involves increasingly higher levels of prolonged and uninterrupted stress. The body adapts to the stress by gradually adjusting its baseline to higher and higher levels. For example, workers in stressful jobs often show an increased "resting" heart rate. Pelletier (1977) believes that the deleterious effects of stress are created only by unrelieved long-term stress. Albrecht (1979) also believes that the effects of stress are cumulative in nature. Ulcers do not just happen overnight in a high stress situation; they are generally the result of long extended exposure to stress. "The health breakdown is simply the logical conclusion of a self-induced disease development over a period of 10 to 20 years." (p. 119) Job stress can have a substantial negative effect on physical and emotional health. Williams and Huber (1986) provide a comprehensive list of the symptoms of stress. These are: "constant fatigue, low energy level, recurring headaches, gastrointestinal disorders, chronically bad breath, sweaty hands or feet, dizziness, high blood pressure, pounding heart, constant inner tension, inability to sleep, temper outbursts, hyperventilation, moodiness, irritability and restlessness, inability to concentrate, increased aggression, compulsive eating, chronic worrying, anxiety or apprehensiveness, inability to relax, growing feelings of inadequacy, increase in defensiveness, dependence on tranquilizers, excessive use of alcohol, and excessive smoking." (p. 246) Furthermore, job stress can make people more susceptible to major illnesses. High stress managers are twice as prone to heart attacks as low stress managers. (Rosenman and Friedman, 1971) Excessive job-related stress is not a small or isolated problem. Over one-third of all American workers thought about quitting their jobs in 1990. One-third believes they will burn-out in the near future, and onethird feels that job stress is the single greatest source of stress in their lives. Nearly three-fourths of all workers feel that job stress lowers their productivity, and they experience health problems as a consequence. (Lawless, 1991, 1992) Furthermore, this is not exclusively a United States phenomenon. A Japanese poll conducted by the Health and Welfare Ministry in 1988 indicated that 45 percent of workers felt stress from their jobs. (Asahi News Service, 1990) Recent studies have found evidence of dangerous physical changes attributed to prolonged stress. One New York study reported a twenty gram increase in heart muscles of those suffering from job stress. There was a significant "thickening of the heart's left ventricle, or chamber, a condition that often precedes coronary heart disease and heart attacks." (Pieper, C., 1990) Omni magazine (March, 1991) wrote about a series of experiments with rats to examine the physiological effects of prolonged stress. The researchers found that

there was actually a loss of neurons in the hippocampus section of their brains. The article concluded with a warning that there is some evidence of a similar neuron loss occurs in humans. Many researchers have studied the effects of stress on performance. McGrath (1978) reported that mild to moderate amounts of stress enables people to perform some tasks more effectively. The rationale is that improved performance can be attributed to increased arousal. However, if the stressor continues, it eventually takes its toll, and results in decreased performance and deleterious health consequences. Furthermore, workers are aware of the toll that stress has had on their own performances. Half of all workers say that job stress reduces their productivity. (Lawless, 1992) Causes of Stress Stressors can be divided into those that arise from within an individual (internal), and those that are attributable to the environment (external). Internal conflicts, non-specific fears, fears of inadequacy, and guilt feelings are examples of stressors that do not depend on the environment. Internal sources of stress can arise from an individual's perceptions of an environmental threat, even if no such danger actually exists. Environmental stressors are external conditions beyond an individual's control. Bhagat (1983) has reported that work performance can be seriously impaired by external stressors. There are many aspects of organizational life that can become external stressors. These include issues of structure, management's use of authority, monotony, a lack of opportunity for advancement, excessive responsibilities, ambiguous demands, value conflicts, and unrealistic workloads. A person's non-working life (e.g., family, friends, health, and financial situations) can also contain stressors that negatively impact job performance. Albrecht (1979) argues that nearly all stressors are emotionally induced. These are based on peoples' expectations, or ". . . the belief that something terrible is about to happen." (p. 83) Thus, emotionally induced stress arises from one's imagination. Albrecht believes that our society's number one health problem is anxiety, and that emotionally induced stress can be classified into four categories: 1) time stress, 2) anticipatory stress, 3) situational stress, and 4) encounter stress. Time stress is always created by a real or imaginary deadline. Anticipatory stress is created when a person perceives that an upcoming event will be unpleasant. Situational stress can occur when a person is in an unpleasant situation, and they worry about what will happen next. Encounter stress is created by contact with other people (both pleasant and unpleasant). Many situations in organizational life can be stressful. These include: 1) problems with the physical environment, such as poor lighting or excessive nose, 2) problems with the quality of work such, as lack of diversity, an excessive pace, or too little work, 3) role ambiguities or conflicts in responsibilities, 4) relationships with supervisors, peers, and subordinates, and 5) career development stressors, such as lack of job security, perceived obsolescence, and inadequate advancement. Adverse working conditions, such as excessive noise, extreme temperatures, or overcrowding, can be a source of job-related stress. (McGrath, 1978). Reitz (1987) reports that workers on "swing shifts" experience more stress than other workers. Orth-Gomer (1986) concludes that when three shifts are used to provide around-the-clock production, major disturbances in people may be unavoidable. One source of environmental stress ignored in the organizational literature is non-natural electromagnetic radiation. Becker (1990) reports that the two most prominent effects of electromagnetic radiation are stress and cancers. Modern offices are filled with electronic devices that produce high levels of radiation. These include computers, video monitors, typewriters, fluorescent lights, clocks, copying machines, faxes, electric pencil sharpeners, and a host of other electronic devices. Human sensitivity to electromagnetic fields is well-documented, and the design of future office equipment will most likely involve a consideration of emitted radiation. Arnold and Feldman (1986) emphasize the deleterious effects of role ambiguity, conflict, overload and underload. Role ambiguity is often the result of mergers, acquisitions and restructuring, where employees are unsure of their new job responsibilities. Role conflict has been categorized into two types: Intersender and intrasender. (Kahn, et al., 1964) Intersender role conflict can occur when workers perceive that two different sources are generating incompatible demands or expectations. Intrasender role conflict can arise when workers perceive conflicting demands from the same source. Overload is frequently created by excessive time pressures, where stress increases as a deadline approaches, and then rapidly subsides. Underload is the result of an insufficient quantity, or an inadequate variety of work. Both overload and underload can result in low self-esteem and stress related symptoms, however, underload has also been associated with passivity and general feelings of apathy. (Katz and Kahn, 1978)

Poor interpersonal relationships are also a common source of stress in organizations. Arnold and Feldman (1986) cite three types of interpersonal relationships that can evoke a stress reaction: 1) too much prolonged contact with other people, 2) too much contact with people from other departments, and 3) an unfriendly or hostile organizational climate. Personal factors are often a source of stress. These include career related concerns, such as job security and advancement, as well as financial and family concerns. Holmes and Rahe (1967) constructed a scale of forty-three life events, and rated them according to the amount of stress they produce. The most notable feature of their instrument is that many positive life changes (i.e., marriage, Christmas, vacations, etc.) are substantial sources of stress. Generally, stress appears to be a result of any change in one's daily routine. French, Kast, and Rosenzweig (1985) believe that any situation that requires a behavioral adjustment is a source of stress. However, a situation that is stressful for one person might not be stressful for another. Older workers seem to be less strongly affected by stressful situations. (Parasuraman and Alutto, 1984) Individuals with high self-esteem and a tolerance for ambiguity are less prone to stress-related illnesses. (Arnold and Feldman, 1986). There is also considerable evidence that a person's susceptibility to stress is dependent on their personality types. Type A personalities (those that seek out fast-paced, challenging situations) often react to stress with hostility and anger, while Type B personalities seem to be have an immunity to the same stressors (Albrecht, 1979; Friedman and Rosenman, 1974; Matthews, 1982; Organ, 1979). Several studies have found that individual's who believe they have control over their own fate (internals), perceive less stress in their work than those who believe their future is determined by other factors (externals). Genmill and Heisler (1972) reported that "internals" had more job satisfaction and perceived their jobs as less stressful than "externals". They also found that a managers perceived stress was unrelated to education, length of time in their career, or their level in the hierarchy. Another study looked at managers of businesses in a community that had recently been destroyed by a hurricane. (Anderson, Hellriegel, and Slocum, 1977). These researchers found that "internals" experienced less stress from the catastrophe, and that their perceived locus of control was a more important factor than their insurance coverage, the amount of the loss, or the duration that the company was out of business. Lawless (1992) reports that ". . . job stress is a consequence of two key ingredients: a high level of job demands and little control over one's work." Some studies have reported that males seem to be more prone to stress-related illness than females. Men report more ulcers and have a higher rate of heart attacks than women (Albrecht, 1979). Other studies have found no differences. Friedman and Rosenman (1974) found that Type a women suffered from cardiovascular diseases and heart attacks as often as their male counterparts. Women in managerial positions suffer heart attacks at the same rate as men in similar positions. (Albrecht, 1979) In a recent study, Lawless (1992) reported that women suffered fifteen percent more stress related illnesses than men. They also thought about quitting their jobs more often, and reported a higher incidence of burnout. Lawless proposed that this is the result of unequal pay scales and a failure of organizations to adopt policies sensitive to family issues. As more women enter the work force, the effects on their health are becoming increasingly apparent. It may be that past differences between males and females are the result of their experience in the work force, and unrelated to gender per se. Lawless (1991) identified the five most common causes of worker stress: 1) too much rigidity in how to do a job, 2) substantial cuts in employee benefits, 3) a merger, acquisition, or change of ownership, 4) requiring frequent overtime, and 5) reducing the size of the work force. Over forty percent of the work force experienced one or more stress-related illnesses as a result of these five stressors. Single or divorced employees, union employees, women, and hourly workers reported greater stress levels, and a higher likelihood of "burning out". (p.6-8) In a follow-up study, Lawless (1992) found similar results except that there was no significant difference between married and unmarried workers. However single women with children were more likely to burn out than married women with children. "Single parenthood compounds the stress women face in juggling work and child care responsibilities, especially when overtime hours are required." (p.11) The current recession is, to some degree, responsible for increased stress in America's work force. "Private sector workers feel more pressure to prove their value because of the recession." (Lawless, 1992, p. 6) Nearly half of all workers and supervisors blame the recession for higher stress levels and lower productivity. Both are being asked to achieve higher goals with a reduced work force. Supervisors reported slightly more stress than workers; however, they were no more likely to experience job burn out. Lawless proposed that supervisors' higher salaries and more having more control over their jobs, partially

counteracted the negative effects of stress. Employees who earned less than $25,000 reported less stress, but they were more likely to burn out because they had less control over their work. Over half of the college graduates in this income category reported feeling burned out. Managing Stress Mangers of organizations have a dual perspective of stress. They need to be aware of their own stress levels, as well as those of their subordinates. Most of the literature focuses on ways of reducing stress. However, a more appropriate approach might be to examine ways of optimizing stress. French, Kast, and Rosenzweig (1985) state that the challenge is to minimize distress and maintain eustress. They point out that the conditions of organizational life create a series of paradoxes that demonstrate the need for balance and equilibrium. 1. Uncertainty can lead to distress, but so can certainties or over control. 2. Pressure can lead to distress, but so can limbo or lack of contact. 3. Responsibility can lead to distress, but so can lack of responsibility or insignificance. 4. Performance evaluation can lead to distress, but so can lack of feedback concerning performance. 5. Role ambiguity can lead to distress, but so can job descriptions that constrain individuality. (p. 708) The role of management becomes one of maintaining an appropriate level of stress by providing an optimal environment, and "by doing a good job in areas such as performance planning, role analysis, work redesign/job enrichment, continuing feedback, ecological considerations, and interpersonal skills training." (p. 709) There are essentially three strategies for dealing with stress in organizations (Jick and Payne, 1980): 1) treat the symptoms, 2) change the person, and 3) remove the cause of the stress. When a person is already suffering from the effects of stress, the first priority is to treat the symptoms. This includes both the identification of those suffering from excessive stress, as well as providing health-care and psychological counseling services. The second approach is to help individuals build stress management skills to make them less vulnerable to its effects. Examples would be teaching employees time management and relaxation techniques, or suggesting changes to one's diet or exercise. The third approach is to eliminate or reduce the environmental situation that is creating the stress. This would involve reducing environmental stressors such as noise and pollution, or modifying production schedules and work-loads. Many modern organizations view the management of stress as a personal matter. An effort to monitor employee stress levels would be considered an invasion of privacy. However, Lawless (1991) found that nine out of ten employees felt that it was the employers responsibility to reduce worker stress and provide a health plan that covers stress illnesses. She emphasized that "employees have no doubt that stress-related illnesses and disability should be taken seriously. Employees expect substantive action by their employer and hold their employer financially responsible for the consequences of job stress." (p. 12) Lawless (1991) reported that four different employer programs were effective in reducing job burn out, where the percent of people reporting burn out was reduced by half. Furthermore, when these programs were offered, there were also half as many stress related illnesses. They are: 1) supportive work and family policies, 2) effective management communication, 3) health insurance coverage for mental illness and chemical dependency, and 4) flexible scheduling of work hours. This study also reported that the success rate for treating stress related disabilities was considerably less than the average for all disabilities, and that the average cost to treat stress related conditions was $1,925 (both successful and unsuccessful). Managers can take active steps to minimize undesirable stress in themselves and their subordinates. Williams and Huber (1986) suggest five managerial actions that can be used to reduce stress in workers. 1. Clarifying task assignments, responsibility, authority, and criteria for performance evaluation. 2. Introducing consideration for people into one's leadership style. 3. Delegating more effectively and increasing individual autonomy where the situation warrants it. 4. Clarifying goals and decision criteria. 5. Setting and enforcing policies for mandatory vacations and reasonable working hours. (p. 252) Establishing one's priorities (i.e., value clarification) is an important step in the reduction of stress. The demands of many managerial positions cause the neglect of other areas of one's life, such as family, friends,

recreation, and religion. This neglect creates stress, which in turn affects job performance and health. Value clarification is linked to time management, since we generally allocate our time according to our priorities. By setting personal priorities, managers and subordinates can reduce this source of stress. It is typically the first step in any stress reduction program. Many sources of stress in organizations cannot be changed. These might include situations like a prolonged recessionary period, new competitors, or an unanticipated crisis. Organizational members generally have little control over these kinds of stressors, and they can create extended periods of high-stress situations. People who adjust to these stressors generally use a form of perceptual adaptation, where they modify the way in which they perceive the situation. Other sources of stress in organizations can be changed. One particularly effective way for managers to minimize employee stress is to clarify ambiguities, such as job assignments and responsibilities. (Arnold and Feldman, 1986) Employee stress is directly related to the amount of uncertainty in their tasks, expectations, and roles. Managers can encourage employees to search for more information when they are given unfamiliar tasks, or when they are uncertain of their roles. Another way to reduce employee stress is to incorporate time management techniques, as well as setting realistic time schedules for the completion of projects. There are many other successful ways of dealing with stress. These include stress reduction workshops, tranquilizers, biofeedback, meditation, self-hypnosis, and a variety of other techniques designed to relax an individual. Programs that teach tolerance for ambiguity often report positive effects. One of the most promising is a health maintenance program that stresses the necessity of proper diet, exercise and sleep. Social support systems seem to be extremely effective in preventing or relieving the deleterious effects of stress. Friends and family can provide a nurturing environment that builds self-esteem, and makes one less susceptible to stress. One study found that government white-collar workers who received support from their supervisors, peers, and subordinates experienced fewer physical symptoms of stress. (Katz and Kahn, 1978) Managers can create nurturing and supportive environments to help minimize job-related stress. Albrecht (1979) hypothesized that there are eight relatively "universal" factors that come into play when evaluating the balance between stress and reward (job satisfaction) in organizations. These are: 1) workload, 2) physical variables, 3) job status, 4) accountability, 5) task variety, 6) human contact, 7) physical challenge, and 8) mental challenge. Each individual has a "comfort zone" for the eight factors. The goal of management is to find the "comfort zone" for each employee those results in optimal performance without producing undesirable side effects. Albrecht's taxonomy is important because it recognizes the necessity of balance. For example, Taylorism stresses the ideas of maximum output, minimal task variety, and continuous supervision. The predicted effect of these imbalances would be stress and a reduction in job satisfaction. Perhaps many of today's organizational problems with worker stress are the result of the effective application of Taylorism. The social climate of an organization is often viewed as a cause of stress. However, social climate is a relativistic concept, and "the social climate of an organization is whatever most of the people think it is." (Albrecht, 1979, p. 167) There are three factors that need to be examined when evaluating social climate. The first is the degree to which employees identify with or alienate themselves from the organization. Employee attitude surveys are an effective method of measuring this factor. Identification can be measured through employees pride in membership, and the extent to which they take initiative and offer constructive suggestions. Alienation can be detected by examining whether members openly criticize the organization, or the degree to which they oppose change. The second factor of organizational climate is the degree to which labor and management are polarized. One of the most effective ways of dealing with this problem is to make all levels of management more visible and accessible. Employees are less likely to criticize management who they see on a regular basis. The goal is to change to perception from "they" (the managers) to "we" (the members of the organization). The third factor is the perceived social norms of the organization. Social norms are abstract organizational values, such as trust, fairness, and respect. Interviews and questionnaires can be used to ascertain organizational social norms, but corrective action involves setting up management programs that clarify organizational values, and may involve replacing certain managers when necessary. Quick and Quick (1984) suggest several diagnostic procedures for determining stress levels in organizations. Interviews allow in-depth probing, but they are time consuming and depend primarily on the listening skills of the interviewer. Questionnaires have the advantage of being able to process higher volumes of data, but they often lose the "flavor" or feel of the responses. Observational techniques (both

medical and behavioral) can be either quantitative or qualitative. Quantitative techniques might involve gathering company records, such as the rates of absenteeism, tardiness, turnover, and production. Qualitative techniques involve observing workers for signs of stress-related behavior. Job engineering and job redesign are recent concepts that attempt to minimize job-related stress. Job engineering takes into account the values and needs of the worker, as well as the production objectives of the organization. (Albrecht, 1979) It involves a six-step cyclical process, beginning with defining the job objectives. This initial step makes statements about "accomplishing something of recognized value." (p. 159) The second step is to define the job conditions. This step specifies the physical, social, and psychological characteristics of the job. The third step is to define the job processes, equipment, and materials. Processes are often presented in a flow chart to show the sequence of operations. The fourth step is to re-evaluate the design from the perspective of the worker, the goal being to achieve a balance between job satisfaction and performance. The fifth step is to test the job design. Employees often experience problems not anticipated by job engineers. The evaluation should look at the "total combination of person, equipment, materials, processes, and surroundings as an integrated whole, and you must measure both productivity and employee satisfaction before you can say the job is well designed." (p. 162) The sixth step involves the ongoing re-evaluation and redesign of the job. Employee attitudes and values change, and new technology provide alternatives to the status quo. Job engineering attempts to be sensitive to these changes, and to modify job descriptions as necessary. Sevelius (1986) describes his experience implementing a wellness education program at a large manufacturing plant. Several successful techniques were used. Booklets on specific health subjects were place in "Take one" bins conveniently located around the plant. The booklets were positively received and increased employees awareness and knowledge. Campaigns were undertaken to highlight the specific themes in the booklets. Group lectures were tried and found to be ineffective because less than ten percent of the employees attended them. In addition, the lectures were video taped, but employees did not take the time to view them. Medical examinations generally did not reveal hidden illnesses, however, they were found to be of considerable value because they gave employees the opportunity of individual medical counseling. Sevelius suggests that peer support systems might also be successful in the workplace. TYPES OF STRESS Every one of us would probably experience different types of stress at one time or another. It could be some personal stress arising in the work place, strained family relationships with teenage children, emotional stress caused by financial problems, post traumatic disorders after an unhappy event like an accident or even feeling stress when you are on holiday! All these various types of stress and many more can however be grouped into four main types of stress. 1. Eustress Have you ever felt: - The thrill and excited feeling while watching a horror movie - The feeling of excitement when you won a game or race - The excitement when you bought your first car - The accomplishment of a challenge - The proud feeling of being a first time parent - The happy feeling of being loved - The excitement of going for a holiday These feelings sure make us feel good and they are the so-called "good stress" or "positive stress". They are able to exert a healthy effect on you. It gives one a feeling of fulfillment or contentment and also makes one excited about life. Unfortunately, it is a type of stress that only occurs for a short period of time. Eustress is also often called the curative stress because it gives a person the ability to generate the best performance or maximum output. 2. Distress Just like everything in life, when there are good or positive stresses, there is also "bad" or "negative stress". These types of stress is the opposite of Eustress and it's called Distress Distress is a negative stress. It is a stress disorder that is caused by adverse events and it often influences a persons ability to cope. Some events leading to distress are: - Death of a loved one - Financial problems - Heavy work responsibility and workload - Strained relationship

- Chronic illnesses Distress can be classified further as acute stress or chronic stress. Acute stress is short-lived while chronic stress is usually prolonged in nature. The remaining two types of stress are: 3. Hyperstress When a person is pushed beyond what he or she can handle, they will experience what we called hyperstress. Hyperstress results from being overloaded or overworked. Its like being stressed out. When someone is hyper stressed, even little things can trigger a strong emotional response. People who are most likely to suffer from hyperstress are: - Working mothers who have to multi-task, juggling between work and family commitments - A Wall Street trader who are constantly under immerse tension - People who are under constant financial strains. - Generally people working in fast pace environment. And the extreme opposite of hyperstress is 4. Hypostress Hypostress stands in direct opposite to hyperstress. That is because Hypostress is one of those types of stress experienced by a person who is constantly bored. Someone in an unchallenging job, such as a factory worker performing the same task over and over, will often experience Hypostress. The effect of Hypostress is feelings of restlessness and a lack of inspiration.

TOPIC 11: MANAGEMENT AND CAREER DEVELOPMENT

MANAGEMENT DEVELOPMENT

Management Development is best described as the process in which managers learn and improve their skills not only to benefit themselves but also their employing organizations. In organizational development (OD), the effectiveness of management is recognized as one of the determinants of organizational success. Therefore, investment in management development can have a direct economic benefit to the organization. Managers are exposed to learning opportunities whilst doing their jobs, if this informal learning is used as a formal process then it is regarded as management development. THE REASONS OR NEEDS FOR MANAGEMENT DEVELOPMENT Management Development has become very important in todays competitive environment. According to a survey, those companies that align their management development with tactical planning are more competitive than the companies that do not. It is managements responsibility of ensuring the success of the organization It is the management who deal with people of different background, culture, language, etc Mergers and acquisitions, downsizing, etc are all under managements control It is managements responsibility to ensure that the employees obtain the required KSAs to perform the tasks It is managements responsibility to ensure that right people are hired for the right job, at the right time in the right place Managers job is complex i.e. for the managers understanding the training need is not easy because his training need is determined by how well his department is meeting its objective and goal. It is the management who makes decisions on the basis of judgment and intuition It is the manager who performs several routine duties as well as handling the exceptions in their own as well as subordinates routine. It is the management that understand the organization, its vision, mission, ethics, values, strategies, capabilities, and how his organization fits into the industry, and how his behavior will influence people outside the organization

Therefore, managers must be able to get the required knowledge, skills, and attitudes (KSAs) to meet the challenges as soon as they arise Components of management development Self development--- a recognition that individuals can learn but are unlikely to be taught and that initiative for development often rest with the individual. Organizational development---the development of systems or formal development beloved of personnel or HR. Boss derived development----those actions undertaken by senior manager with others, most frequently around real problems at work. structured informal learning: work-based methods aimed at structuring the informal learning which will always take place formal training courses of various kinds: from very specific courses on technical aspects of jobs to courses on wider management skills executive education: which might range from courses for (perhaps prospective) junior managers or team leader

MANAGEMENT DEVELOPMENT ACTIVITIES

Analysis of present and future management needs Assessment of existing and potential skills and effectiveness of managers against those needs. Production of strategies and plans to meet those needs. Ensure that managers understand what is expected of them Improve the performance of managers in their present role in preparation for greater responsibilities. Identifying managers with potential and encouraging them to prepare personal development plans. Provide for management succession, creating a system to keep this under review. Provide better information and advice for individual managers on how to think about their future direction in career terms and their learning needs. Mainstreaming the skills required to manage self-development and to support the development of others. Finding ways of delivering more stretching and stimulating management development to the whole population of managers.

AIMS AND IMPORTANCE OF MANAGEMENT DEVELOPMENT

Approaches to management development There are three basic approaches to management development:

Learning through work Formal training Feedback facilitation and support Development on the job through coaching, mentoring counseling, monitoring and feedback Development through work experience which includes job rotation, job enlargement, taking part in project or task group, action learning and secondment outside the organization. Formal training by means of external and internal courses. Structured self- development by following self-managed learning programme agreed as personal development plan or learning contract with manager or a management development adviser. E-learning as part of blended learning programme Emphasizing self-assessment and the identification of development needs Getting managers to produce their own personal development plans or self- managed programme. Encourage managers to discuss their own problems and opportunities with their bosses, colleagues or mentors in order to establish for themselves what they need to learn or be able to do. Dysfunction analysis Mentoring Coaching Job rotation

Formal approaches

Informal Approach

Other Approaches

Professional development Business Workflow Analysis Upward feedback Executive education Supervisory training

Integrated approach The reality of management Relevance Self-development Experiential learning Formal training MANAGEMENT DEVELOPMENT STRATEGY Management development strategy is concerned with the overall activities of what the organization intends to do about providing for its future management needs in light of its business plan. The strategy will be concerned with the roles of the parties involved and with approaches the organization proposes to use to develop its managers. The prime aim of these benchmark statements is to identify the key facet that make up management development activities. Those that provide personnel and line managers with a means of conducting their own evaluation and analysis of the state of management development within their organization. Each dimension in the statement brings together such aspects as the link between the management development plan, the assessment of skills and identification of skill gaps, and the delivery of appropriate and effective training and development. The facets or dimension are broken down into four aspects of performance; Commitment to management development Reviewing the current position of management development. Making progress in management development. Evaluating the progress management development

Career Development in the Workplace Recent expansion of work-based career development programs has resulted in a larger literature base. Because career development is increasingly regarded as the shared responsibility of employee and employer, the importance of this topic is likely to grow. Of interest to employers, human resource staff, and adult educators, this ERIC Digest discusses the purposes of career development programs in the workplace and describes the components of such programs. Guidelines for the creation of an organizational career development program are presented. CAREER DEVELOPMENT DEFINED Career development refers to "the outcomes of actions on career plans as viewed from both individual and organizational perspectives" (Gutteridge 1986, p. 52). The outcomes desired by organizations include achieving the best match between people and jobs. Individuals' desired outcomes range from status to job flexibility to monetary rewards, depending upon the situation. Career development is just one component of human resource management in organizations. Others include control and evaluation, organizational design, and human resource planning (Gutteridge 1986). THE ROLE OR IMPORTANCE OF CAREER DEVELOPMENT Both external and internal factors influence the need for career development. Among these factors, Slavenski and Buckner (1988) list the following: The need to identify and forecast personnel needs, Social

and demographic trends, The changing nature of work, Changing types of jobs, Equity and a multicultural work force, Worker productivity, Technological change and decreasing advancement opportunities o Organizational philosophies Employers are motivated to establish career development programs because such programs are seen as an effective response to various personnel problems, because top managers prefer to promote existing employees and to ensure a good fit between the work and the worker, and because employees have expressed interest in career development as a benefit (Gutteridge 1986). Above all, "most organizations adopt career development programs in response to pragmatic human resource concerns and because they believe it will help ensure a continued supply of qualified, talented personnel" (Gutteridge 1986, p. 58). MANAGEMENT CYCLE The management cycle provides a framework for career development practice. Each of the steps in the management cycle corresponds to career development strategies that help both manager and employee maximize career growth (Slavenski and Buckner 1988). These steps, with appropriate career development tasks, are the following: HIRE OR PROMOTE Strategies at this phase focus on assessing job candidates and hiring or promoting the person whose skills and interests best match the job. ORIENT OR COMMUNICATE This step involves making known to the new employee what is expected, what the organizational culture is like, and what the value systems are. Some companies establish mentoring programs to assist with this task. OBSERVE PERFORMANCE Employee performance is measured with reference to expectations. Feedback is provided. MANAGE PERFORMANCE Employees are rewarded for their strengths. Positive aspects of performance are emphasized. DEVELOP EMPLOYEE Various tools can be used for staff development, including in service training, career planning workshops, and counseling and assessment services. At this stage, managers may place employees with high potential on the "fast track." MAKE PERSONNEL SELECTION DECISIONS As organizational needs arise, potential employees are recruited and the cycle starts again with a job match. COMPONENTS OF A CAREER DEVELOPMENT PROGRAM Slavenski and Buckner (1988) divide the career development process into three distinct phases: (1) staffing and orientation, (2) evaluation, and (3) development. Each of these phases is composed of strategies from which the employer may choose to create a customized career development system.

TOPIC 12: CONTEMPORARY ISSUES IN MANAGEMENT

What did Henry Fayol and Max Weber contribute to contemporary Management Thought? They developed the General Administrative theory. Fayol wrote during the same time as Taylor, but his attention was directed at the activities of all managers, and he wrote from personal experience. He was the managing director if a large French coal- mining firm and was a practitioner. Fayol argued that management was an activity common to all human undertakings in business, in government, and even at home. He stated fourteen principles of management which are fundamental or universal truths that could be applied to management activities in all human endeavors. They are: 1. DIVISION OF WORK. Specialization increases output by making employees more efficient. 2. AUTHORITY. Managers must give orders. Authority gives them the right. But, along with authority, goes responsibility. 3. DISCIPLINE. Employees must obey and respect the rules that govern the organization. Good discipline is the result of effective leadership, a clear understanding between management and workers, and the judicious use of penalties for infractions of the rules. 4. UNITY OF COMMAND. Every employee should receive orders from only one superior. 5. UNITY OF DIRECTION. Each group of organizational activities that have the same objective should be directed by one manager using one plan. 6. SUBORDINATION OF INDIVIDUAL INTERESTS TO THE GENERAL INTEREST. The interests of any employee or group of employees should not take precedence over the interests of the organization as a whole. 7. REMUNERATION. Workers must be paid a fair wage for their services. 8. CENTRALIZATION. It refers to the degree to which subordinates are involved in decision making. Whether decision making is centralized (to management) or decentralized (to subordinates) is a question of proper proportion. 9. SCALAR CHAIN. The line of authority from top management to the lowest ranks. Communication should be included in this chain. 10. ORDER. People and materials should be in the right place at the right time. 11. EQUITY. Managers should be kind and fair to their subordinates.

12. STABILITY OF TENURE OF PERSONNEL. High employee turnover is inefficient. Management should provide orderly personnel planning and ensure that replacements are available to fill vacancies. 13. INITIATIVE. Employees who are allowed to originate and carry out plans will exert high levels of effort. 14. ESPRIT DE CORPS. Promoting team spirit will build harmony and unity within the organization. Max Weber was a German sociologist. He developed a theory of authority structures and described organizational activity on the basis of authority relations. He described an ideal type of organization that he called a bureaucracy which contains: 1. Division of labor. 2. Authority Hierarchy. 3. Formal Selection. 4. Formal Rules and Regulations. 5. Impersonality. 6. Career Orientation. Weber recognized that this ideal bureaucracy didn't exist in reality, but that it represented a selective reconstruction of the real world. What Were the General Administrative Theorist's Contributions to Management Practice? General administrative theorists are writers who developed general theories of what managers do and what constitutes good management practice. For example, the functional view of the manager's job owes its origin to Henry Fayol. They became a frame of reference against which many current concepts have evolved. Weber's bureaucracy was a response to the abuses that he saw going on within organizations. Weber believed that his model could remove the ambiguity , inefficiencies, and patronage that characterized most organizations at that time. Many of the components of his bureaucracy are still inherent in large organizations today.

Organizational learning
Organizational learning is an area of knowledge within organizational theory that studies models and theories about the way an organization learns and adapts. In Organizational development (OD), learning is a characteristic of an adaptive organization, i.e., an organization that is able to sense changes in signals from its environment (both internal and external) and adapt accordingly. OD specialists endeavor to assist their clients to learn from experience and incorporate the learning as feedback into the planning process. Argyris and Schn were the first to propose models that facilitate organizational learning; others have followed in the tradition of their work

Argyris & Schn (1978) distinguished between single-loop and double-loop learning, related to Gregory Bateson's concepts of first and second order learning. In single-loop learning, individuals, groups, or organizations modify their actions according to the difference between expected and obtained outcomes. In double-loop learning, the entities (individuals, groups or organization) question the values, assumptions and policies that led to the actions in the first place; if they are able to view and modify those, then second-order or double-loop learning has taken place. Double loop learning is the learning about single-loop learning. Kim (1993), integrates Argyris, March and Olsen and another model by Kofman into a single comprehensive model; further, he analyzes all the possible breakdowns in the information flows in the model, leading to failures in organizational learning; for instance, what happens if an individual action is rejected by the organization for political or other reasons and therefore no organizational action takes place?

Organizational knowledge

Some of this knowledge can be termed technical knowing the meaning of technical words and phrases, being able to read and make sense of data and being able to act on the basis of generalizations. Scientific knowledge is propositional; it takes the form of causal generalizations whenever A, then B. For example, whenever water reaches the temperature of 100 degrees, it boils; whenever it boils, it turns into steam; steam generates pressure when in an enclosed space; pressure drives engines. A large part of the knowledge used by managers, however, does not assume this form. The complexities of a managers task are such that applying A may result in B, C, or Z. A recipe or an idea that solved very well a particular problem, may, in slightly different circumstances backfire and lead to ever more problems. More important than knowing a whole lot of theories, recipes and solutions for a manager is to know which theory, recipe or solution to apply in a specific situation. Sometimes a manager may combine two different recipes or adapt an existing recipe with some important modification to meet a situation at hand. Individual learning Learning by individuals in an organizational context is the traditional domain of human resources, including activities such as: training, increasing skills, work experience, and formal education. Given that the success of any organization is founded on the knowledge of the people who work for it, these activities will and, indeed, must continue. However, individual learning is only a prerequisite to organizational learning. Organization Re-Engineering Organizational re-engineering is a process, conducted by an independent consultant, aimed at helping a client correct a specific problem. For example: improve productivity, efficiency, and/or strategic direction. Our staff consultants and associate consultants have the expertise to address such challenges, particularly in non-profit and not-for-profit organizations. Your project may involve one or more of the four common re-engineering challenges listed below, or a special challenge specific only to your particular industry. 1. Business Strategy Assessment: to evaluate the degree to which the mission, goals and strategic objectives of your organization are realistic, attainable and capable of being accomplished. completion, on time, within budget, and functioning correctly. (e.g., Information Technology upgrades.) Management Structure: to assess the appropriateness of divisions of responsibility and authority within the organization, and advance recommended changes for greater efficiency and effectiveness. financial, operational) that is negatively impacting the business, or represents a significant threat.

2. Change Process: to lead and manage a specific corporate project to ensure its successful
3.

4. Critical Concern: to help correct or overcome a particular business challenge (e.g., regulatory,
Knowledge management Knowledge management (KM) comprises a range of strategies and practices used in an organization to identify, create, represent, distribute, and enable adoption of insights and experiences. Such insights and experiences comprise knowledge, either embodied in individuals or embedded in organizations as processes or practices. An established discipline since 1991, KM includes courses taught in the fields of business administration, information systems, management, and library and information sciences (Alavi & Leidner 1999). More recently, other fields have started contributing to KM research; these include information and media, computer science, public health, and public policy. Many large companies and non-profit organizations have resources dedicated to internal KM efforts, often as a part of their business strategy, information technology, or human resource management departments (Addicott, McGivern & Ferlie 2006). Several consulting companies also exist that provide strategy and advice regarding KM to these organizations. Knowledge management efforts typically focus on organizational objectives such as improved performance, competitive advantage, innovation, the sharing of lessons learned, integration and continuous

improvement of the organization. KM efforts overlap with organizational learning, and may be distinguished from that by a greater focus on the management of knowledge as a strategic asset and a focus on encouraging the sharing of knowledge.

Information and organizations Advances in information and communication technologies are associated with a wide and increasing range of social consequences, which are experienced by individuals, work groups, organizations, interorganizational. Information is both an input and output when we view an organization as a system. The organization gets information as resourse, processes it and generates more information.

TOPIC 6: ORGANIZATIONAL CONFLICT, POLITICS AND POWER

Organizational conflict is a state of discord caused by the actual or perceived opposition of needs, values and interests between people working together. Conflict takes many forms in organizations. There is the inevitable clash between formal authority and power and those individuals and groups affected. There are disputes over how revenues should be divided, how the work should be done and how long and hard people should work. There are jurisdictional disagreements among individuals, departments, and between unions and management. There are subtler forms of conflict involving rivalries, jealousies, personality clashes, role definitions, and struggles for power and favor. There is also conflict within individuals between competing needs and demands to which individuals respond in different ways. Personal conflict Conflict sometimes has a destructive effect on the individuals and groups involved. At other times, however, conflict can increase the capacity of those affected to deal with problems, and therefore it can be used as a motivating force toward innovation and change. Conflict is encountered in two general forms. Personal conflict refers to an individual's inner workings and personality problems. Many difficulties in this area are beyond the scope of management and more in the province of a professional counselor, but there are some aspects of personal conflict that managers should understand and some they can possibly help remedy. Social conflict refers to interpersonal, intra-group, and inter-group differences. It was pointed out that there is a basic incompatibility between the authority and structure of formal organizations and the human personality. Human behavior cannot be separated from the culture that surrounds it

Role Conflict Another facet of personal conflict has to do with the multiple roles people play in organizations. Behavioral scientists sometimes describe an organization as a system of position roles. Each member of the organization belongs to a role set, which is an association of individuals who share interdependent tasks and thus perform formally defined roles, which are further influenced both by the expectations of others in the role set and by one's own personality and expectations. For example, in a common form of classroom organization, students are expected to learn from the instructor by listening to him, following his directions for study, taking exams, and maintaining appropriate standards of conduct. The instructor is expected to bring students high-quality learning materials, give lectures, write and conduct tests, and set a scholarly example. Another in this role set would be the dean of the school, who sets standards, hires and supervises faculty, maintains a service staff, readers and graders, and so on. The system of roles to which an individual belongs extends outside the organization as well, and influences his functioning within it. As an example, a man's roles as husband, father, son, and church member are all intertwined with each other and with his set of organizational roles. As a consequence, there exist opportunities for role conflict as the various roles interact with one another. Other types of role conflict occur when an individual receives inconsistent demands from another person; for example, he is asked' to serve on several time-consuming committees at the same time that he is urged to get out more production in his work unit. Another kind of role strain takes place when the individual finds that he is expected to meet the opposing demands of two or more separate members of the organization. Such a case would be that of a worker who finds himself pressured by his boss to improve the quality of his work while his work group wants more production in order to receive a higher bonus share. These and other varieties of role conflict tend to increase an individual's anxiety and frustration. Sometimes they motivate him to do more and better work. Other times they can lead to frustration and reduced efficiency. ORGANIZATIONAL POLITICS Organizational politics is an inescapable and intrinsic reality. Organizational politics is so intricately woven with management system that relationships, norms, processes, performance and outcomes are hugely influenced and affected by it. Organizational politics defined Organizational politics can be described as self serving and manipulative behaviour of individuals and groups to promote their self interests at the expense of others, and some times even organizational goals as well. Organizational politics in a company manifests itself through struggle for resources, personal conflicts, competition for power and leadership and tactical influence executed by individuals and groups to attain power, building personal stature, controlling access to information, not revealing real intents, building coalitions etc. We don't have to watch too much political news coverage before we are reminded of the presence of politics in our own organizations. Most people find a negative connotation when it comes to organizational politics, but our roles as leaders require influence - - and to influence others requires building relationships of trust and persuading others to follow us. That's what politics are all about. We can leverage political skills to manipulate others, or to influence them to achieve more than they thought possible. The Foundation It almost all comes down to relationships. When we struggle to get our way, we can so easily criticize others for being overly-political or playing dirty tricks. While it can be the case that others are unfair in their practices, it can also be that we lose sight of the value of diversity of thought and different ways of seeing... When we gain some organizational power, we must be careful to use it to influence not to get our own way, but

the way that will ultimately be best for the organization and for achieving our own personal mission (which must be focused on making a difference beyond meeting our own needs) MANAGING ORGANIZATIONAL POLITICS Here are a few recommendations on organizational politics. Reframe the situation We can assume that it is "all about us;" or we can recognize that much of politics is about people working to get things done with a diverse community of interests. Spend more time with opponents Opponents are people who we trust, but who don't agree with us on our approach to a problem. Most of us spend time with our allies, who we trust and who agree with us... when the people we have the most to learn from are our opponents (high trust/low agreement). See Block's The Empowered Manager for more on this. Don't take things personally The best thing I got out of the book, The Four Agreements, was the wonderful advice to never take anything personally. It is incredibly freeing and minimizes our egos - - and can help us keep focused on a personal and/or an organizational vision and mission. It is our choice whether or not we will personalize things that happen

Consider the power dynamic Recognize that power can come in the forms of legitimate, referent, reward, expert, and coercive power (French and Raven). Much of politics is based on power - and who's got it.

Build on mutually beneficial interlocking relationships The better we are at building relationships, the better we will be at organizational politics. Consider being "political" as an act of service When we strive to be more political in order to serve others, to make a contribution, and to create something meaningful, it sure makes building our skills worthwhile. Understanding of organizations political systems Understanding of organizations political systems is absolutely essential for leadership to maneuver the company towards the goals. Internally grown leaders will have an advantage of knowledge of general political conditions prevailing in the company (different coalitions and centers of influence which can create buy in or create road blocks). Leaders from outside must put efforts to learn and understand the existing organizational politics through keen observation and focused interaction with different groups of people. Some of the indicators available for leaders to assess political climate is general job satisfaction levels, responsiveness to innovative ideas, and efficacy of decision making machinery and speed of implementation of decisions. Understanding is the key for leaders to exploit and smother organizational politics and also to enhance their own leadership credibility. Leveraging political understanding for advantage Leaders use political leverage available to them under different situations in order to promote the organizational interests. Once the understanding of organizational politics is gained leaders may use political leverage available to them under different situations in order to promote the organizational interests. Leaders exploit

organizational politics even to graduate to leadership positions as potential leaders with proper political orientation may: Time the opportunity to highlight their contribution Ensure top management support for difficult decisions or initiatives Make use of suitable persons (experts, consultants, experienced persons with right image etc.) to put their point across Show respect for hierarchy in spite of the hurdles that it may create Opt to be in the opposition, challenging the status quo etc. Also political acumen of leaders is put to test when dealing with aspects such as change management and crisis management. In such situations leaders need to quickly identify the group which is going to support them and build a strong coalition with counter strategies backed by overwhelming facts and reasons before the war begins thereby preempting a war. Also crucial at these times is the choice of the persons made responsible to fight the war (change agents or crisis management team) and how critical support is made available to them through subtle changes in organization structure and resource allocation. Promoting progressive culture not politics Indisputably, leaders are source of power, influence and hence politics in an organization. Since people have needs and leaders have the authority to fulfill these needs, those who fulfill the needs hold potential power. Leaders can to a great extent smother political climate having negative impact on the people attitudes and organization outcomes by aligning individual needs with organizational goals, in such a way that fulfillment of collective goals results in automatic fulfillment of individual needs also. Leaders must realize that organizational politics is a function of culture of trust in the organization, which is built through values of fairness and transparency. Fair play, justice and transparency in procedures and processes is key in creating an environment where organizational politics take back seat and a progressive culture is established which gives prominence to organizational goals through voluntary involvement of individuals. In other words, leaders must inspire people into action by creating clarity and unity of purpose and build synergies through organizational value It is extremely important for leaders to understand, exploit and smother the political climate in the company to maximize the organizational outcome and satisfaction levels of the people. ORGANIZATIONAL POWER Power is the potential to influence others to do what they would otherwise not do. Power, its origin and concomitants have been a focus of scholarly work for many years most probably because of its critical role in leadership. Few would deny that power is central to human affair or key concept in social sciences. Every group, organization or society must solve the problem of power to achieve its goals or risk failure, dysfunction or even extinction. Many scholars have been fascinated by the dynamics of power in organizational leadership and this has provoked them to produce much scholarly research reports based on both primary and secondary data. When we talk of secondary data the phrase already connotes that there are scholars who have quoted other scholars work, meaning that scholarly work on power as a subject have been produced and reproduced. For instance, Knippenberg and others reveals that in social psychology, recent years have witnessed a re-emerging interest in power and its consequences, origin and concomitant. This revelation has come after Knippenberg and others have reviewed the literature of (Keltner, Gruenfield, and Underson, 2003). Somech and Drach-Zahavy quoting French and Ravens, 1959; SpeakMan, 1979), are also of the view that the concept of power and influence have been the focus of scholarly attention for decades. In this chapter we are going to explore the literatures that revolve around the study of power and

its dynamics in organizational leadership. The purpose of doing this juncture is to try to find the gaps on the major themes of power. The proposed major themes of power includes; the origins of power, consequences and concomitants. THE ORIGINS OR BASES OF POWER Many scholars who have written about the sources of power do consider to a great extent the French and Ravens five sources of interpersonal power. These power bases include Legitimate, Reward, Coercive, Expert and Referent (Ivancevich and others, 2005, 388). LEGITIMATE POWER Legitimate power is the position power or authority. The organization gives its leaders the potentials to influence certain behaviors and attitudes to the subordinates. The subordinate, particularly those who values conformity and tradition believes that they should abide by the authority because they believe the leader has a legitimate right. Some scholars are of the view that possessing legitimate power or authority does not mean that all orders will be followed by those who are subordinates to the individual in authority. Ivancevich and others argues that, for a subordinate to comply with an order from a superior, it requires that the order fall within the subordinates zone of indifference. McShane and Glinow (2010, 302), quoting Barnard, 1938; Hardy and Clegg, 1996), explains that the zone of indifference is the range within which people are willing to accept some one elses authority. The size of this zone of indifference (and, consequently, the magnitude of legitimate power), increases with the extent to which the power holder is trusted and makes fair decisions. Does this power not give a loophole for abuse when people say that the boss is always right, even when the directives of the leader doesnt fall within their zone of indifference? Does it help the organization when subordinates follow the leaders authority blindly without listening to or ignoring their conscience? A persons legitimate power can be changed by transferring the person, rewriting the job description, or by reducing the power by restructuring the organization (Ivancevich and others, 2005:390) REWARD POWER Reward power is derived from the persons ability to control the allocation of rewards valued by others and to remove negative sanctions. Leaders have formal authority that gives them power over the distribution of organizational reward such as pay, promotions, time off, vacation schedules, opportunity to attend a training program, and good work assignments. Baron, (1986:345) is of the view that in some ways reward power i s the most important source of power. This in essence puts the followers under the mercy of the powerful leader. They either submit and do as per the dictates of the leader or forego any chance of obtaining desirable reward. If these rewards are given only to those who submit as Baron (1986) puts it, will it not encourage sycophancy? What about removing negative sanctions or negative reinforcement as McShane and Von Glinow (2010), puts it? Does the denial of the reward objective and is the submission objective for the benefit of the organization? Is this source of power directly opposite coercive power or is a supplement? Does this power encourage

positive or negative competition among workers or the subordinates? COERCIVE POWER Many authors such as Mullin (2008), Baron (1986), Ivancevich and others (2005), are in agreement that coercive power is the opposite of reward power. This coercive power is based on fear and the subordinates perception that the leader has the ability to punish or bring about undesirable outcomes for those who do not comply with the directives; for instance ; withholding pay rises, promotions and privileges; allocations of undesirable duties or responsibility; withdrawal of friendship or support formal reprimands or possibly dismissal. When the leader exercises coercion the followers may comply out of fear of negative reinforcement or punishment. On the other hand McShane and Von Glinow (2010) argue that, employees also have coercive power, ranging from sarcasm, to ostracism, to ensure that co-workers conform to teams norm. Researchers are of the view that many firms leaders rely on this coercive power to control workers behavior in team setting. Knippenberg and others (2006), who researched on why people may resort to coercive tactics, the result showed that in general coercive tactics are employed less often than softer tactics, that coercive tactics are employed by more competent individuals, and that coercive tactics are used more often when revenues of task performance benefited the agent of power than when they benefited both agent and target or when they benefited the target. According to them the use of coercion may be called the ultimate demonstration of power (Knippenberg and others, 2006:277). Unsurprisingly some scholars such as (Raven, 1992; Yukl and Tracy, 1992) are of the view that coercive tactics usually are considered to be unfriendly and socially undesirable. People object to be forced against their will, to be denied valuable resources, or to be told what to do (knippenberg 2006). This means therefore that the use of coercive tactics is likely to place more strain on the relationship between power holder and target than the use of softer tactics such as persuasion, ingratiation, requesting. A key question regarding the determinants of the use of power is when and why leaders are willing to resort to the use of coercion than the use of softer means of influence? Some insights into conditions that enhance the likelihood of the use of coercive tactics are found in earlier studies. Several studies show that the direction of influence affects the use of strong and softer power. According to Knippenberg and others(2006), differential use of power tactics has also been found for various objectives of influence attempts, for people having high versus low self esteem, for individuals having high versus low status, for scoring high versus low on the Machiavellianism scale, for people expecting versus not expecting future interaction, for transactional and transformational leadership styles, for; different levels of education, for in-groups versus out-groups targets, and for different cultural and social norms. EXPERT POWER Unlike coercive, reward and legitimate powers (which originate from position), expert and referent powers originate from within the person. It is an individuals or work unit capacity to influence others by possessing knowledge or skills that are valued by others. McShane and Von Glinow (2010) are of the view that employees are gaining expert power as society move from an industrial to knowledge-

based economy. Ivancevich and others (2005) asserts that experts have power even when their formal position in the organizational hierarchy is low. The reason is that employee knowledge becomes the means of production and is ultimately outside the control of those who owns the company. And without this control over production, owners are more dependent on employees to achieve their corporate objective. Although dependence is a key element of power relationship, it is really more accurate to say that parties are interdependent. In power relationship there is always the dominant party and the dominated party. In such a power relationship the dominated has what McShane and Von Glinow (2010:301) call the countervailing power-enough power to keep the dominant power in exchange relationship and ensure that the dominant power is used judiciously. To make sure that the dominant power is exercised within the dominated zone of indifference. For instance, leaders and managers have power over subordinates by controlling their job security and promotional opportunities. At the same time employees have countervailing power by possessing skills and knowledge that keeps production humming and customers happy, something that the executives cannot accomplish alone. What about if there is substitutability of employees at this age academic competition, will the expert employees have power over their employers and is their power sustainable? Can it be abused where the leader combines with other powers to issue directives that fall outside the employees zone of indifference? REFERENT POWER This is basically the charismatic leadership power held by people who have extra-ordinarily likeable and influential personality, character and behavioral style. Experts have difficulty agreeing on the meaning of charisma, but it is most often described as form of interpersonal attraction whereby followers ascribe almost magical power to the charismatic individual. I am of the view that referent power can be reinforced by the legitimate power and vise versa. The strength of a persons charisma is an indication of his or her referent power. People have referent power when others identify with them, like them, or otherwise respect them (McShane and Von Glinow, 2010: 303). It is largely a function of the persons interpersonal skills and tends to develop.