PDF-of-Sociologies-of-Organisation-1-munotes

Page 1

1 UNIT I
1
ORGANIZATION: CHARACTERISTICS
AND PRINCIPLES OF ORGANIZATION
Unit Structure
1.0 Objectives
1.1 Introduction
1.2 What is an Organization?
1.3 Characteristics of Organization
1.4 Principles of Organization
1.5 Summary
1.6 Questions
1.7 Refe rences and Further Readings
1.0 OBJECTIVES  To understand what is an organization.
 To familiarize students with its characteristics and principles.
1.1 INTRODUCTION Organization refers to a collection of people, who are involved in pursuing
defined objec tives. It can be understood as a social system which
comprises all formal human relationships. The organization encompasses
division of work among employees and alignment of tasks towards the
goal of the company. It can also be referred as the second most important
managerial function, that coordinates the work of employees, procures
resources, and combines the two, in pursuance of company‟s goals.
There are various aspects to an organization, such as its characteristics,
structures, types, principles and s o on. Thus, organization is a social
system composed of people, structure and technology for achieving
common goals in a dynamic environment. In other words, organization is
a human association, where two or more people come together with a
certain common aim and equipment and desire to achieve certain common
goals through planned joint effort and team work.
In this unit, we will be exploring the important characteristics and
principles of an organization, besides understanding what actually is an
organizat ion.
munotes.in

Page 2

2 Sociology of Organizations
2 1.2 WHAT IS AN ORGANIZATION? According to S.A. Sharlekar and V.S. Sherlekar, “Organization is a
mechanism or a basic framework enabling person to work together
effectively and achieve the set goals through integrated group effort. It is a
medium for the management to exercise managerial functions.”
Similarly, according to W.J Duncan, “An organization is a collection of
interacting and interdependent individuals who work toward common
goals and whose relationship are determined according to a certain
structure.”
Therefore, organization is a place with certain structure, where people
come and work together to achieve a common goal, in a changing
environment.
Tribe, ethnic groups, families are not organization.
The three essentials of an organizations are : -
a. people
b. common goal
c. Joint effort
There are two concepts of an organization:
1. Static Concept:
Under static concept the term „organization‟ is used as a structure, an
entity, or a network of specified relationship. In this sense, organizatio n is
a group of people bound together in a formal relationship to achieve
common objectives. It lays emphasis on position and not on individuals.
2. Dynamic Concept:
Under dynamic concept, the term „organisation‟ is used as a process of an
on-going activit y. In this sense, organisation is a process of organizing
work, people and the systems. It is concerned with the process of
determining activities which may be necessary for achieving an objective
and arranging them in suitable groups to be assigned to ind ividuals. It
considers organization as an open adoptive system and not as a closed
system. Dynamic concept lays emphasis on individuals and considers
organization as a continuous process.
Within any organization, managers need to choose from many types of
organizational design. Organizational design is the way managers
structure their organization to reach the organization‟s goals. The
allocation of duties, tasks, and responsibilities among departments and
individuals is an organizational design element. Ot her structural and
design elements include reporting relationships and the number of levels
in the organization‟s hierarchy. munotes.in

Page 3

3 Organization: Characteristics and Principles of Organization Some modern organizational designs rely on computer and
communication technologies. Others draw on well -established designs that
managers and organizations have used for many years. Whatever the
organizational design chosen, they all have a simple enduring quality —
they are hierarchies that depend on authority relationships. Organizational
charts show an organization‟s formal design. They show the
organization‟s current configuration or a future configuration that the
organization‟s managers want. These charts typically use boxes to show
positions in the organization and lines connecting the boxes to show
reporting relationships.
We f ind different kinds of organization in our society. These organizations
are classified according to the nature and purpose. They are as follows: -
Business organization: The organization which is established in order to
make profit is known as business org anization. The prime beneficiaries of
these organizations are the owners or shareholders. E.g. Surya Nepal
Company, Buddha Air etc.
Non-profit Social Organization: The organizations which are established
not for making profit but for giving or providing se rvices to the
customer/clients or community are nonprofit social organizations. E.g.
Tribhuvan University, Nepal Red Cross, Bir Hospital etc.
Cooperative Organization: These types of organization are established to
reduce the effort of competition and maxi mize the value of cooperation.
The main aim of this organization is to fulfill the individual needs and
prosperity of all members involved through collective effort.
Government Organization: The organization formed by the government to
provide service to g eneral public is government organization. They can be
ministries, department, military, police etc. The main goals of this type of
organization are regulation and welfare of general public.
International Organization: The organizations which are establishe d by the
involvement of different countries for the sake of their welfare are called
international organization. E.g. ASEAN, SAARC, UNDP, IMF etc. These
organizations are always engage in promoting the collective interest of
member countries.
Check Your P rogress:
1. What do you understand by the term „organization‟?
munotes.in

Page 4

4 Sociology of Organizations
4 1.3 CHARACTERISTICS OF ORGANIZATION Different authors look at the word „organisation‟ from their own angle.
One thing which is common in all the viewpoints is that organization is
the establishment of authority relationship among persons so that it helps
in the achievement of organizational objectives.
Some of the characteristics of organisation are studied as follows:
1. Division of Work:
Organisation deals with the whole task of bus iness. The total work of the
enterprise is divided into activities and functions. Various activities are
assigned to different persons for their efficient accomplishment. This
brings in division of labour. It is not that one person cannot carry out
many fu nctions but specialization in different activities is necessary to
improve one‟s efficiency. Organisation helps in dividing the work into
related activities so that they are assigned to different individuals.
2. Co-Ordination:
Co-ordination of various acti vities is as essential as their division. It helps
in integrating and harmonizing various activities. Co -ordination also
avoids duplications and delays. In fact, various functions in an
organisation depend upon one another and the performance of one
influe nces the other. Unless all of them are properly co-ordinated, the
performance of all segments is adversely affected.
3. Common Objectives:
All organizational structure is a means towards the achievement of
enterprise goals. The goals of various segments le ad to the achievement of
major business goals. The organizational structure should build around
common and clear cut objectives. This will help in their proper
accomplishment.
4. Co-operative Relationship:
An organisation creates co -operative relationship among various members
of the group. An organisation cannot be constituted by one person. It
requires at least two or more persons. Organisation is a system which
helps in creating meaningful relationship among persons. The relationship
should be both verti cal and horizontal among members of various
departments. The structure should be designed that it motivates people to
perform their part of work together.
5. Well -Defined Authority -Responsibility Relationships:
An organisation consists of various positions arranged in a hierarchy with
well-defined authority and responsibility. There is always a central
authority from which a chain of authority relationship stretches throughout
the organisation. The hierarchy of positions defines the lines of
communication a nd pattern of relationships. munotes.in

Page 5

5 Organization: Characteristics and Principles of Organization Check Your Progress:
1. Elaborate on any two most important characteristics of an organization?
1.4 PRINCIPLES OF ORGANIZATION According to a Harvard Business Review, as organization development
evolves alongside inst itutional practices and insights into human behavior,
a big piece of the field is still missing: a set of principles that convey what
organizations must do well to thrive. Accordingly, below are 10 principles
to guide developmental initiatives within your organization.
1. Encourage cooperation:
The central objective of organization development is to achieve a
cooperative institutional order and quash destabilizing self -interest. A
more effective and lasting strategy, is to change the nature of work
relation ships. Friends cooperate more than strangers, where the allure of
self-maximizing behaviors is high. Consequently, good companies expend
a great deal of energy creating strong social bonds among employees.
2. Organize for change:
Organizations that need t o change often don‟t. Once -great companies have
found their final resting places in an expansive graveyard of slow -movers
and has -beens. These companies failed because they were unable to adapt
to changing conditions and succumbed to capitalism‟s unapologe tic truth
that only the fittest will survive. In effective organizations, leaders upend
paralysis by generating a consensus of meaning and action. They build the
case for change, create a positive mindset for change, convince others of
the value and legiti macy of the change efforts, and battle against systemic
forces of institutional inertia that lock companies into their current,
misguided trajectories. Confidence, conviction, and courage are helpful
companions in this journey, as not all change is readily apparent and must
be made before there is an evident need for it and the window of
opportunity has closed.
3. Anticipate the future:
Not every organizational death is avoidable. That said, corporations do not
have to linger indefinitely on the edge of lif e or die prematurely. The
preservation of an organization- depends on its leaders having the
navigational judgment and skill to prepare their companies for what lies
ahead. However, when the future arrives, many companies cannot meet
the demands that new m arkets and consumer tastes require, as long -term
aspirations have been thwarted by short -term impulses. munotes.in

Page 6

6 Sociology of Organizations
6 4. Remain flexible:
Organizations must be at once disciplined and flexible, prudently reacting
to the unexpected during turbulent times and flexibly be nding when rushes
of demand are placed on them — then regaining their shape once the need
for transformation has passed. This ability to situationally morph in
response to customer/market demands is typically achieved through
improved automation and additi ons to staff in number or function in the
attempt to align the technology and people with what customers want,
when they want it — while avoiding costly utilization errors like being
understaffed at peak times.
5. Create distinctive spaces:
It is hard to f ind studies that don’t support the link between the quality of a
work environment and employees‟ health, satisfaction, and performance.
Indeed, the basic dimensions of environmental indoor quality such thermal
comfort, air quality, lighting, acoustic quali ty, and the ergonomic features
of furnishings positively relate to enhanced performance. The quality of
environment is a potential competitor for scarce mental and emotional
resources that can either enable or undermine learning and task
performance.
6. Diversify your workforce — and create an inclusive environment:
Complex tasks require a diverse mix of viewpoints and abilities to
satisfactorily complete. We know that it takes a composite of designers,
computer scientists, engineers, and manufacturers to build a car. Indeed,
the wisdom of needing different people to pool their physical, attitudinal,
and intellectual assets to solve problems is well established.
7. Promote personal growth:
An effective talent management program is one in which a company ha s a
large pool of able, external job candidates, sufficient competent coverage
of existing positions, succession plans throughout the organization, and a
panoply of support programs: career counseling and development, career
planning workshops and vocation al assessments, mentoring and coaching
programs, and in -house training and educational assistance to augment
employees‟ career objectives. That said, the most notable way
organizations expect people to improve is in job -related ways by honing
expertise.
8. Empower people:
The practice of empowerment in organizations is often like a parent
handing the keys of a high -performance vehicle to their teenager and
hoping, day after day, that the car will return intact. Simply handing over
power to another provides little assurance that something positive will
come of it. The change entails a significant shift in culture and operations
that involves increased information -sharing, technological enhancements, munotes.in

Page 7

7 Organization: Characteristics and Principles of Organization participative decision making, extensive training, collabora tive problem
solving, and team trust.
9. Reward high performers:
When executed well, merit -based pay for performance plans increase job
satisfaction and motivate action and, when appropriately structured, are
instrumental in producing environments in which the best help the rest.
Indeed, it is common in teams that the top members will lift the
performances of good, but less capable, members.
10. Foster a leadership culture :
Everyone who has worked in an organization knows the affective power
of leadership a nd its effects on culture, both good and bad. On one hand,
the adverse effects of abusive supervision and incivility on employees‟
mental and physical health, job satisfaction, and performance are well -
documented. On the other hand, supportive, inclusive m anagement
practices that provide assurances of safety allow people to take reasonable
risks, make mistakes, speak up and challenge the status quo, and ask for
help and request resources to make improvements.
Check Your Progress:
1. Elaborate on any five pr inciples of organizations.
1.5 SUMMARY Thus, an organization is a group of two or more individuals and the
coordinated allocation of resources around a common goal or
objective. The elements that distinguish an organization from a loose
associati on of individuals are as follows:
People : All organizations require human members. While the organization
will likely have other forms of resources, such as capital and equipment,
the involvement of human beings is essential.
Distinct Purpose : The members of the organization collaborate to achieve
a distinct purpose, such as the purpose laid out in the mission statement.
The organizational purpose generally includes the accomplishment of
tasks or obtaining the desired result.
Deliberate Structure : The organ ization has a structure that is commonly
recognized and adhered to by all members. An organization may assume a
legal business entity status that controls its organizational structure. munotes.in

Page 8

8 Sociology of Organizations
8 1.6 QUESTIONS 1. What is an organizational design?
2. Explain the char acteristics of organizations.
3. What are the principles of organzations?
1.7 REFERENCES  Bekmezci, I. (2022). Concepts of Management. Characteristics,
Levels, Functions, Skills, and Importance: GRIN Verlag.
 Champoux, J. E. (2020). Organizational Behavior: Integrating
Individuals, Groups, and Organizations: Taylor & Francis.
 Malone, T. W., Laubacher, R., Morton, (2003). Inventing the
Organizations of the 21st Century: MIT Press.

*****
munotes.in

Page 9

9 2
FORMAL ORGANISATION
Unit Structure
2.0 Objectives
2.1 Introduction
2.2 Meaning and Definition of Organisat ion
2.2.1 Nature of Organisation
2.2.2. Need and Importance of Organisation
2.2.3 Elements or Components of organisation
2.2.4 Principal of organisation
2.2.5 Functions of Organisation.
2.3 Meaning of Organizational Structure
2.3.1 Factors affeciing organi zational structure
2.4 Meaning of Organizational Process
2.5 Classification / Types of Organizations
2.6 Meaning and Definitions of Formal Organisation
2.6.1 Characteristics / Features of Formal Organisation
2.6.2 Importance of Formal Organisation Structur e
2.6.3 Merits / Benefits of Formal Organisation Structure :
2.6.4 Drawbacks / Demerits / Limitations of Formal Organisation
Structure
2.7 Types of Structure
2.7.1 Meaning and definitions of Line Organisation, characteristics/
features Of line organisatio n, Merits and Demerits of line
organisation.
2.7.2 Meaning of Functional Organisation, features / characteristics
of functional organisation, Advantages / Merits and Demerits /
Disadvantages of Functional organisation
2.7.3 Line-and- staff organisation: Me aning and Definition,
Features/ characteristics,Advantages / Merits and Demerits /
Disadvantages
2.7.4 Meaning and Definition of Tall organisation structure,
Advantages / Merits and Demerits / Disadvantages.
2.7.5 Meaning of Flat organisation, Merits / Adv antages and
Demerits / Disadvantages.
2.8 Summary
2.9 Glossary
2.10 Questions
2.11 References
munotes.in

Page 10

10 Sociology of Organizations
10 2.0 OBJECTIVES  To enable students to understand the meaning of organisational
structure, organizational process and various types of structures su ch
as line organization, functional organizations, line -and-staff
organization, tall and flat organization,
 To provide detailed knowledge about the features, importance, merits
and demerits of formal organisation and also of the various types of
structures mentioned above.
2.1 INTRODUCTION An organisation is a group of people working together to achieve common
goal. An organizational structure is the established pattern of relationships
among various components or parts of the organization. Organizational
structure can be studied through organizational chart. Organizational
structure indicates the organisation’s hierarchy and authority structure and
show its reporting relationship. Structure implies the positioning of
offices, role and activities within the organization. Effective structuring
helps organisation to achieve their goals and facilitates employees to
operate efficiently.
2.2 MEANING AND DEFINITIONS OF ORGANISATION To conduct any activity, business or non -business, there is a need for an
organisati on. If there is no organization, it is not possible to conduct
activities.
In simple words, organizing means, organizing the ways and means for the
execution of a business plan.
Organisation Means :
a) Group of individuals working together towards common go al.
b) Group of individuals placed in different positions in the level of
management to achieve business goals.
c) Group of individuals held tdgether by authority responsibility
relationships.
Definition of Organisation:
James Mooney and Reily define orga nisation as “the form of every human
association for the attainmënt of a common pürpose”.
According to Ogbum and Nimkoff, an organisation “is an articulation of
different parts which perform various functions, it is an active group
device for getting somet hing done”. munotes.in

Page 11

11 Formal Organisation According to H.M. Johnson, “organisation refers to an aspect of
interaction systems”. Mc Farland defines organisation as “An identified
group of people contributing their efforts towards attainment of goals”.
According to Kossen “An organisatio n is a group of indi \/iduals co -
ordinated into different levels of authority and segments of a specialization
or the purpose of achieving the goals and objectives of the organization”.
Check Your Progress:
1. What do you mean by organization? Define the term organisation.
2.2.1 Nature of Organisation:
1. Organisation is a chain of relationship among the different parts of an
organisation.
2. Every organisation exists to aGhieve certain common goals.
3. Organisation consists of group of individua ls who come together to
achieve the goals of the organisation.
4. The various activities of the organisation are divided among the
different people in the organisation.
5. In every organisation there is a need for system of co -ordination.
6. Authority is t he power to make decisions, to command and to get the
work done from the sub -ordinates. The authority may be delegated.
7. Every organisation has its own rules and regulations which are to be
followed by every individual in the organization.
8. Every organ isation functions in an environment. Actions of
Organisation are not only influenced by the external environment but
also by the internal environment prevailing within the organisation.
Check Your Progress:
1. Explain the nature of organisation. munotes.in

Page 12

12 Sociology of Organizations
12 2.2.2 Need and Importance of Organisation :
a) Organisation ensures optimum utilization of resources, both human
and physical resources.
b) Organisation facilitates co -ordination.
c) A properly designed and balanced organisation facilitates effective
manage ment of the organisation.
d) A sound organisation avoids confusion, misunderstanding and
overlapping of functions and as such employees are motivated to
produce better results.
e) Organisation facilitates delegation of authority.
f) A sound organisation e ncourages initiative and innovation.
g) Sound organ ization s have contributed to tech nologica I
developments.
h) Good organisation achieves good progress.
Check Your Progress:
1 Explain the need and importance of organisation.
2.2.3 Elements or Components of organisation:
H.G. Hicks and C.R. Gullet state that there are two types of elements
common to all organizations. These two elements are : -
(a) Core Element — Persons : The core element of any organisation is
the persons who interact with the organization. Without people,
organisation cannot come into existence.
(b) Working Element — Resources : Resources can be broadly divided
into two groups : -(i) Human Resources — includes Managers and
non-Managers, (ii) Physical or non -human resources — include
machine, materials and money.
Check Your Progress: -
1. Explain the Elements / Components of organisation. munotes.in

Page 13

13 Formal Organisation 2.2.4 Principles of organisation:
(a) Every organisation needs to have specific and well -defined objectives.
(b) As far as possible, the work of each individual should be confined to a
single or similar position.
(c) In an organization, individuals and departments must co -ordinate with
other individuals and departments to accomplish organizational goals.
(d) Every Manager must have some aut hority in order to decide, organize
and direct the use of resources to attain the goals of the organisation.
(e) There should always be a balance between authority and
responsibility.
(f) Organisation is not a short -term arrangement. It is a continuous
process.
(g) As far as possible, there should be a few levels of supervision
between the top authority and the workers.
(h) As far as possible, authority and corresponding responsibility should
be delegated far down in the organisation.
(i) The authority, res ponsibility, superior — subordinate relations and the
chain of command should be clearly defined.
t) The organisation should be so planned, that the objective can be
attained with lowest possible cost.
(k) Each person should report and answer to only one superior.
(l) The top management should concentrate only on exceptional or
important matters and lower level managers should be given freedom
to handle routine matters.
Check Your Progress :
1. Explain the principles of organisation.
2.2.5 Functio ns of Organisation:
(a) Division of Labour:
When two or more individuals join together to perform certain tasks, it
follows that some division of work is done. Work is divided among those munotes.in

Page 14

14 Sociology of Organizations
14 who participate in a productive organisation. The division of labou r leads
to a fixing of responsibility, the delegation of authority, specialization.
(b) Combination of Labour:
With work divided and assigned to the members of an organisation, their
activities are grouped together , forming operations, and operations are
arranged to establish systems and procedures.
(c) Co -ordination:
There is the need in every organisation for the integration of activities and
the co -ordination of individuals and groups of individuals performing their
tasks. Co -ordination is achieved thr ough leadership, in the structural sense,
it involves the fixing of responsibility and the delegation of authority.
Check Your Progress:
1 Explain the functions of organisation.
2.3 MEANING OF ORGANIZATIONAL STRUCTURE Organizational structure is the system of task reporting and authority
relationship within which the work of the organisation is done.
As K. Aswathappa has noted — organizational structure gives concrete
shape to the organisation. The structure determines division of work and
show ho w different activities are linked. It also indicates the pattern of
authority and determines relationship between super -ordinates and sub -
ordinates. It provides the stability and continuity that the organisation
needs to survive and also to co -ordinate its activities with external world
An organizational structure can be viewed as accomplishing four distinct
functions: -
a) Dividing work into manageable segments.
b) Recombining work logically or efficiently.
c) Distributing power to co -ordinate work.
d) Establishing lines of communication and the directive or non -
directive nature of informatiorrflow.
In the words of F. Kast and S. Rosenweig “Structure is the established
pattern of relationship among the components or parts of an organization.”
Generally, the formal structure refers to the following : - munotes.in

Page 15

15 Formal Organisation a) The organizational structure is based on pattern of relationships
among the people working in an organisation.
b) The organizational structure is also based on the duties and the
positions of individuals and departments in the organization.
c) Every organisation has a definite purpose or goal to achieve.
d) The formal organization structure of an organisation has two
dimensions i.e. Horizontal and Vertical. Horizontal Dimension depicts
the various departments. Vertical Dimensions depicts the hierarchy of
authority from the top level to the lower level.
e) Organizational structure depicts the power status and hierarchical
relationship within the organisation.
f) Organisational structure involves the planned and formalized policies,
procedures and controls that guide the activities and relationships of
the people in the organisation.
Check Your Progress:
1. Explain the meaning of organizational structure.
2.3.1 Factors affecting organizational structure :
Two sets of factors affecting s tructure of an organisation are:
(A) Internal Contingency Factors:
(1) Goals:
Organisation may set the goals like production with quality or service with
guarantee. To achieve various goals, the organisation may adopt
flexibility, adaptability, technical superiority or efficiency as means to
achieve them.
(2) Organisation Size:
The structure also depends on size of the organisation. The small size
leads to informal structure. As the organisation grows in size, the activitie s
tend to become more formalized.
(3) Employee Characteristics :
Some employees prefer highly structured organisation while others do not
prefer them. Especially, old prefer bureaucratic structure, while young munotes.in

Page 16

16 Sociology of Organizations
16 with to raise the›r VOices. They need to partic ipate in decision making
process. They also do not like rigidity in rules.
(B) External Contingency Factors : These includes -
(1) Dependence on external forces:
Since organizations are open systems, they react to external en vironments.
There are two differ ent types of environments:
(i) General environment: means population which is physical, socio -
cultural, technological and economic in nature. They affect the
structure of organisation,
(ii) Task environment : suppliers, customers, competitors, government
regulatory agencies, public pressure groups and the like form the
environment which affect the structure.
(2) Volatility of the environment :
The organisation can be very rigid to face change or can be flexible when
change can be predictable. This means tha t to resist change, the
organisation should be strict while to adopt change, it should be flexible.
(3) Technology :
In hi -technology units, structures should facilitate problem solving and
risk taking. Other structures facilitate efficiency. With routine t echnology,
there is more centralized control.
Check Your Progress:
1. Explain the factors affecting organizational structure.
2.4 MEANING OF ORGANIZATIONAL PROCESS Louis Allen defines organisation as “the process of identifying and
grouping of th e work to be performed, defining and delegating
responsibility and authority and establishing a pattern of relationship for
the purpose of enabling people to work most effecti vely together in
accomplishing objecti ves”.
In the words of “rheo Haimann, “Organ ising is the process of defining and
grouping of aCti/ities of enterprise and establishing the authority
relationships among them. In performing the organizing function, the
manager defines, de partmentalizes and assigns activ ities so that they can
be most effecti vely executed”. munotes.in

Page 17

17 Formal Organisation The organizing process invo lves the following steps : -
(a) Defining the organizational goals,
(b) Determining activities to achieve the goals,
(c) Grouping of act ivities into sections or departments,
(d) Making arrangement of human a nd physical resources,
(e) Assigning duties to individuals and departments, (f} Granting of
authority to superiors,
(g) Establishing superior and sub -ordinate relationships,
(h) Providing a system of co -ordination to interlink the various activities
of the organisation.
Check Your Progress:
1. Explain the meaning of organizational process.
2.5 CLASSIFICATION / TYPES OF ORGANISATIONS Organisation structures take different forms. Broadly all the forms fit into
one or two basic categories — Formal or Informal. A formal organisation
has well -defined goals. There is the presence of superior — sub-ordinate
relations. Informal organisation exist within the formal organization.
Informal organisation is a network of personal and social relations existing
within formal organisation. There are no definite goals. Again, there is no
superior — sub-ordinate relations.
Check Your Progress:
1. Explain the Types / Classification of organizations.
munotes.in

Page 18

18 Sociology of Organizations
18 2.6 MEANING AND DEFINITIONS OF FORMAL ORGANISATION The modern industrialized, urbanized and civilized societies of the world
consist of a large number of formal organizations. Due to the complexity
in the growth of societies, the number and size of the formal organizations
have increased. They are found in the econom ic, political, educational,
industrial and other fields.
Formal organizations represent those organizations which are
characterized by a specific function, division of labour, a hierarchy of
authority, rationality and a proper arrangement of statuses and r ole. They
are carefully planned and systematically worked out. Examples : Banks,
colleges, universities, factories, corporations, Government, Political
parties, trade unions, courts, libraries, police, army, government offices,
life insurance corporations, religious, cultural and other organizations.
Definition of Formal Organisation :
According to Chester Bernard, “An organisation is ‘formal’ when the
activities of two or more persons are consciously co -ordinated towards a
common objective”.
Check Your Prog ress:
1. What do you mean by formal organization? Define formal organisation.
2.6.1 Characteristics / Features of Formal Organisation:
(1) A specific function: -
Formal organisation has its own specific function or functions. A
University for exampl e, has the main function of promoting education. But
it may also promote the specific artistic, literary, athletic and other
interests of the members. The principal function of the Church is religion.
But it may also promote Charitable, ethical, athletic, recreational,
educational, missionary and other activities. -rhus, the formal organisation
may have it’s ‘latent’ as well as ‘manifest’ functions.
(2) Norms:
The formal organisation has its own norms or rules of social behaviour.
Certain conduct is approp riate in a university classroom, a factory, an
office, a department store, a hospital, a government bureau, a military unit
and so on. Students and teachers, firemen and workers, vice - presidents
and secretaries, managers and clerks, doctors and nurses and similar other munotes.in

Page 19

19 Formal Organisation members observe norms in their interaction. Formal organisation lays
down procedure to be followed by the members.
(3) Formal Organisation implies Statuses and Division of Labour:
Members of an organisation have different statuses. A bank fo r example,
may have manager, a public relation officer, a field officer, a cashier, a
few clerks, a few peons and so on. These statuses determine one’s social
relations with other members. Statuses imply division of labour. The
division of labour is charac teristic of all organizations and in a sense,
Organisation is synonymous with the division of labour. Organized actions
in a formal organisation are possible because of division of labour. It
contributes to the efficiency of the organisation. Division of l abour leads
to specialization. The modern hospital, for example, may consist of a
number of specialists like the Gynaecologists, pediatricians, surgeons,
anesthetists, heart specialists, urologists, neurologists, psychiatrists and
others working together, each one complementing the knowledge and skill
of the others.
(4) Authority :
The formal organisation creates authority. Where there is no organization,
there is no authority, where there is no authority, there is no organisation.
Authority is one of the mo st significant criterion of organisation.
Authority refers to the presence of one or more power centres which
control the concerted efforts cf the organisation and direct them towards
its goals. -rhese power centres also must review continuously the
organi sation’s performance and re -pattern its structure where necessary, to
increase its efficiency.
(5) Bureaucracy :
Bureaucracy refers to the administrative aspect of the formal organisation
It refers to the arrangement of the organisation designed to carry ou t its
day-to-day business. It is represented by a hierarchy of officials who are
assigned different responsibilities and provided with different statuses and
roles. Here, the roles are official roles. The role is enacted according to its
corresponding offi cia! status. Status implies authority. Authority resides
with the offices and not with the persons.
(6) Rationality :
The formal organisation is based on rationality. The rationality of formal
organizations has two sources :
(i) “The predominance of rules that have been devised to help achieve
definite results” and
(ii) “The systematic reliance on knowledge in the operation of the
organisation”. “Knowledge” here means something more than the
knowledge of the bureaucrat rules. For example, business firms
depends upon the professional knowledge of a good number of
technical experts such as lawyers, accountants, advertisers, scientists, munotes.in

Page 20

20 Sociology of Organizations
20 engineers. Similarly hospitals depend upon medical doctors, nurses,
pharmacists and many technicians.
(7) Relative Performan ce:
The formal organization s are relatively permanent. Some organizations
last for longer time while others perish within a short period of time.
Relatively few organizations survive for generations such as the Roman
Catholic Church. The Society of Jesus, The Bank of France, The Oxford
University which haVe survived for generations. Comparatively, the
business organizations are more flexible. Some organizations continue to
function by aiming at the fulfillment of new goals even though their initial
goals a re fulfilled.
(8) Tests of Membership :
It is easy to join some formal organizations and difficult to join others. All
organizations require certain qualifications. All formal organizations
without exception, in fact, are relatively closed. All of them have tests of
membership. It is easy to join political party or an industry, but it is
difficult to get into the army, the cabinet of the ruling party, etc.
Membership in an organisation is almost always an achieved status,
seldom merely an ascribed status.
(9) Substitution of Personnel :
The unsatisfactory persons of the formal organisation can be removed and
others assigned their tasks. The formal organisation can also recombine its
personnel through transfer and promotion.
(10) A nam e and other identifying Sy mbols :
Well established formal organizations have their own names and also
symbols. The symbols of identification may be mottoes, slogans, signs,
colours, ribbons, seals, trademarks and so on. These serve to distinguish
one from the other.
In sum, the impo rtant features of the formal organisation are ; -
(a) A formal organisation is a group of people working together towards
objectives which mutually benefit the participants and the
organisation.
(b) Formal groups exist in all organizations. Such groups are created in
order to carry out specific duties.
(c) Formal groups are in the form of committees, task force, protect
teams, etc.
(d) Formal groups are given proper official status and operate as per
certain rules and procedures. munotes.in

Page 21

21 Formal Organisation (e) In a formal organisation , the structure ofjobs and positions are clearly
defined. Each job has definite measure of authority responsibility and
accountability.
Check Your Progress:
1. Explain the characteristics / features of formal organisation.
2.6.2 Importance of Forma l Organisation Structure:
The structural features of a formal industrial organisation meet the
following functional requirements of the industry: -
(1) Aim:
The first and foremost aim of any organisation is to make profit. This aim
must be achieved in orde r to survive.
(2) Technology:
In order to achieve this aim, industry must engage in a process of
production which can produce materials most efficiently and
economically. This technical process has certain characteristics which
have greater significance: -
(a) Co -ordination:
All industrial technical processes have highly co - ordinated systems. Raw
materials must appear in the plant at proper time and be distributed to the
proper areas, work must flow smoothly from one area to another,
machines must work simu ltaneously, standard of work and of production
must be maintained, customer must be supplied on time, services must be
given satisfactorily.
(b) Specialization :
The work is divided in such a way that each group is made responsible for
a definite area of wo rk. When people continuously do the same job, they
become expert.
(c) Specialized Knowledge :
Each individual or group must have authority over work as far as
knowledge is concerned. This is necessary looking at the complexity of
industrial system. The sear ch for new products and the competition for
changing the design. Changing technology e.g. computerization or
increased automation requires people with great skill and also variety of
skills. munotes.in

Page 22

22 Sociology of Organizations
22 (d) Long range planning:
There is need for long range planning in order to compete successfully the
market conditions. Financial capacity must be judged properly.
(3) Training and development of employees:
New as well as old employees must be trained, motivated and supported in
order to make them efficient and better. H uman capacities must be
recognized and properly utilized.
(4) External environment :
Relations must be maintained with government and public. Customers
must be satisfied. Union leaders should be convinced. Credit agencies or
financial institutions must be k ept in touch, market should be controlled.
Check Your Progress:
1.Explain the importance of formal organisation.
2.6.3 Merits / Benefits of Formal Organisation Structure :
If the organisation process is carried out properly and the organisation
structure is carefully designed, the following benefits would be assured.
(1) Available resources will be utilized in the most effective way.
(2) Directional and operational goals and procedures will be determined
clearly and energies devoted to their achievement.
(3) An orderly hierarchy in which people are related in a meaningful
sequence will result. Individual responsibilities will be known clearly
and the authority to act would be defined.
(4) Workers will benefit from planned superior sub -ordinate relationshi ps
in which each workers receives essential support and direction.
(5) The activities of the individuals and the groups will become more
rational, stable and predictable.
(6) Such an organisation may make the treatment of the individual
workers more democr atic because patronage and favoritism are
reduced.
(7) Individuals will be selected on the basis of ability to perform expected
tasks. Simplification and specification of job assignment is possible in
a more effective way.
munotes.in

Page 23

23 Formal Organisation Check Your Progress:
1. Explain the merits/benefits of formal organisation structure.
2.6.4 Drawbacks / Demerits / Limitations of Formal Organisation
Structure :
(1) Very often, the fixed relationships and lines of authority seem
inflexible and difficult to adjust to meet changing needs.
(2) Individual creativity and originality may be stifled by the rather rigid
determination of duties and responsibilities.
(3) Inter -personalcommunication may be slowed or stopped as a result of
strict adherence to formal lines of communication.
(4) Workers may become less willing to assume duties that are not
formally a part of their original assignment.
(5) Organisations tend to fail to account for important differences in
workers as human beings.
(6) They produce anxiety in individual workers by p ressing too heavily
for routine and conformity.
(7) They become two costly in terms of time and human dignity in order
to implement organizational rules and regulations.
These drawbacks can be reduced through careful planning and efforts by
supervisors to b e responsive to human problems created by formal
organizational structure.
Check Your Progress:
1. Explain the demerits / limitations / drawbacks of formal organisation
structure.
2.7 TYPES OF STRUCTURE Line Organisation, Functional Organisation, L ine — and — Staff
organisation and Tall and Flat Organisation Structure.
munotes.in

Page 24

24 Sociology of Organizations
24 2.7.1 Meaning and definitions of Line Organisation:
Line organisation is the simple and oldest typp of organization. Under this,
each department is generally a complete self contain ed unit. A separate
person will look after the activities of the department and he has full
control over the department. This type of organisation is followed in the
army on the same pattern. So it is called military organisation. Under this
type of organi zation, the line of authority flows from the top to bottom
vertically. So it is called line organisation. Line organisation is also called
as military or scalar organisation.
According to Louis Allen, “Line refers to those positions and elements of
the org anisation, which have the responsibility and authority and are
accountable for accomplishment of primary objectives”.
There are two kinds of Line Organisation : -
(a) Pure Line Organisation : All the individuals perform the same type
of work. i.e. all the w orkers may be engaged in a similar activity.
(b) Departmental Line Organisation : There is a chief executive at the
top. Under him, there are number of departments, each headed by a
departmental manager. Even within a department, there may be
several sub -departments or units carrying different task.
Check Your Progress:
1. What do you mean by Line Organisation. Define Line Organisation.
2.7.1 (a) Characteristics / Features of Line Organisation:
(1) It consists of direct vertical relationship.
(2) Authority flows from top level to bottom level.
(3) Departmental heads are given full freedom to control their
departments.
(4) Each member knows from whom he would get orders and to whom he
should give his orders.
(5) Operation of this system is very easy.
(6) A senior member has direct command over his sub -ordinates.
(7) Existence of direct relationship between superior and sub -ordinates.
(8) The superior takes decisions within the scope of his authority.
munotes.in

Page 25

25 Formal Organisation Check Your Progress:
1. Explain the features / c haracteristics of Line Organisation.
2.7.1 (b) Merits of Line Organisation:
(a) Simplicity:
It is very easy to establish. The workers can understand the concept and
relationship with others without any difficulty.
(b) Division of Authority and Res ponsibility:
Each person has his area of authority which is clearly explained to him. So
he knows to whom he is responsible for doing the job.
(c) Unity of Control:
An individual can receive orders only from one superior. It means that a
sub-ordinate is responsible only to one superior and he gets orders only
from him.
(d) Speedy Action:
There is a proper division of authority and responsibility and unity of
command. Hence, an individual can take decisions and execute the plans
without any delay.
(e) Dis cipline:
The authority flows from top to bottom. Loyalty and discipline can be
maintained among the employees of the organisation without much
difficulty.
(f) Economical:
It is a single type of organization, it is economical.
(g) Direct Communication:
There is a direct relationship between the superior and the sub -ordinate at
all levels of organisation. This will help to know each other intimately.
(h) Flexibility:
Adjustments in the organisation can be easily made to suit the changing
conditions of th e business.

munotes.in

Page 26

26 Sociology of Organizations
26 (i) No Buck -Passing:
There are limited chances of shifting responsibility of failure on to others
as authority and responsibility is clearly defined.
Check Your Progress:
1. Explain the merits of Line Organisation.
2.7.1 (c) Demerits / Limitations of Line Organisation:
(1) Lack of Specialization:
Each person is responsible for the overall exhibition of activities relating
to his department alone. He is not expected to be on expert in all aspects of
managerial task. He simply gives in structions to his sub -ordinates and
does not specialize in certain phases of operation.
(2) Over L oading :
Whenever the scale of operations or size of the business unit increases,
this system gives over work to the existing executives. So they are not in a
position to direct and control the efforts of their sub -ordinates properly.
(3) Lack of Initiative:
Since maximum authority is invested with the top management, the
departments will lose their initiative to motivate the sub -ordinates.
(4) Scope for favour itism:
Only one person controls the activities of the department when there is a
scope for favoritism and nepotism.
(5) Dictatorial:
Under line organisation, a sub -ordinate should carry out the instructions
and orders, which are given by the superior. If not, he will be penalized.
This entails in autocratic and aristocratic approach in administration. So,
managers will become dictators and not leaders.
(6) Limited Communication:
In normal time, the communication moves downwards but very rarely, it
moves upwards. The downward communication may be orders,
instructions, etc. The management may know the grievances of
employees. But the top management does not prefer upward
communication. So, it results in limited communication.
munotes.in

Page 27

27 Formal Organisation (7) Unitary Administration :
A single executive who takes all the decisions relating to his department
look after each department’s activities. Hence, the successful functioning
of that department depends en his abilities.
(8) Subjective Approach :
The degree of availability of authority is more to the superior than to the
sub-ordinates. So the superior takes decision without considering the
opinions of the sub -ordinates. The sub -ordinates should follow the
decisions taken by the superior.
(9) Instability :
The success of this type of org anisation depends mostly on the ability of
only a few strong men and the failure of this organisation is likely due to
the inability of the same persons.
(10) Lack of Co -ordination :
The co -ordination among the departmental heads is not easy to achieve.
The reason is that the executive of a department does not consider other
departments important. This will result in the lack of co -operation and
team spirit.
(11) Unsuitability for Large -Scale Enterprise:
This type of line organisation is not suitable for a large -scale enterprise
which requires specialization.
(12) The business activities may be divided according to the will of the
manager rather than according to any scientific plan.
(13) The system has no means of appreciating the efficient worker and
punishing of the inefficient worker.
(14) Under line organisation, efficient persons are essential to the top
management. Practically, it is very difficult to find efficient persons
for small organisations.
(15) The required time and efforts are insufficient f or managerial
planning, research and development and controlling activities of the
organisation.
Check Your Progress: -
1. Explain the demerits/ limitations of Line organisation. munotes.in

Page 28

28 Sociology of Organizations
28 2.7.2 Meaning of Functional Organisation:
The functional structure is t he most widely used form because of its
simple logic and common sense appeal. It is the basic building block of
organisation. It is the module from which other forms are built. Here
activities are grouped together by common function. It is commonly
describ ed as “Organizing work into related bundles of skill”. Each
functional unit has a dissimilar set of duties and responsibilities. In a
university, functional structure would mean a set of departments like
marketing, management, business economics, finance, etc. Thus, similar
and related occupation specialities are grouped together. Functional
structure tries to incorporate the positive aspects of specialization. The
critically speaking, management is trying to create the most efficient
department by having i dentifiable departments of specialists. -rhis system
of organisation was developed by F.W. Taylor around 1900. His main idea
was that the direction of work must be decided by function and not by
mere authority.
Check Your Progress :
1. Explain the meaning of functional organisation.
2.7.2 (a) Features I Characteristics of Functional organisation: -
(1) Specialization by Function:
Functional structure orients people towards a special activity. It helps
people to conc=ntrate competence in particular wa ys.
(2) Sub -Goa I emphasis:
Functional structure co mpels departmental heads to concentrate on sub -
unit goals. Departmental heads are judged based on how well they meet
the standards, achieve the targets, etc. This leads to sub -unit goals
emphasis.
(3) Gr owth always pyramidal:
Growth in a functional -structure is a process of horizontal and vertical
elaboration. Whe n a new product is added to the existing product line, the
added positions and departments are made part of the existing functional
structure. Each function grows by adding layers to be the base of the
pyramid and to the span of superv:Psion and number of levels reporting to
each manager within the functional pyramid.

munotes.in

Page 29

29 Formal Organisation (4) Line -staff division:
A clear distinction between line and staff activitie s is observed in all
functional structures. lnfact, functional organization is a modified form of
line and staff structure. Line functions have direct responsibility for
achieving the basic purpose of the organization. Staff functions play
supportive role. Line commands, staff ad \/ises.
(5) Functional Relationship:
Functional relationship subjects managers to multiple supervision. The
process of departmentation can take place with all three types of authority:
line, staff and functional. Functional authorit y is subordinate to line
authority and is a way of relating specialists to work (the line) in the
organization. Functional specialists are endowed with a limited scope of
command authority. A personnel department (normally a staff department)
iS sometimes given line authority to recruit new personnel for other line
departments (like production, finance). In the absence of this type of
functional authority, the personnel department will be expected to send the
prospective employees to the line department.
(6) Centralization and decentralization:
One man heads up all of one kind of work. In a functional organization,
authority is centralized to a great extent. As a result, co -ordination within
function is simplified.
(7) Span of control:
The span of management is limited in functional structure. As a result,
they tend to be “tall” structure. Managers exercise close supervision and
they rely on impersonal rules, producers to manage individuals in
organization.
Check your progress: -
1. Explain the feature/charact eristics of functional organization.
2.7.2 (b) Advantages/Merits of functional organization:
(a) Facilitates specialization:
The functional organization permits specialization. “rhis is because each
executive look offer a specific function. The wor k in the organization is
divided on the basis of functions. Therefore, there is division of work.
This brings in accuracy, neatness and speed in work.
munotes.in

Page 30

30 Sociology of Organizations
30 (b) Mass production:
This is possible through schemes of standardization and specialization.
Thus it can keep the economies of large scale production.
(c) Facilitate Co -ordination:
It facilitates effective coordination. This is because each superior is in
charge of particular function. Therefore, he can easily coordinate the
activities of his subordinates as far as his function is concerned.
(d) Reduced pressure of duties:
Unlike a line organization, functional organization reduces the burden of
executives or supervisors as they need not perform diverse duties.
(e) Effective supervision:
Under this system an executive as well as the foreman perform specific
function. He is not unduly overloaded with varied duties. The specialist,
therefore can concentrate on his specialized area and can effectively
supervise the work of his subordinates.
(f) Scope for functio nal improvement:
Since the supervisor has to perform a specific function only, the repetitive
nature of the function allows him to have thorough job analysis and hence
there is scope for further improvement.
g) Less need for generalists:
There is reduction in the need for all round employees at the non -
supervisory level, as well as at the execu - tive level.
h) Good quality of production:
The quality of production can be of high order, as there are experts
(inspectors) to monitor the quality of production.
i) Optimum use of resources:
In this type of organization, there is optimum use of resource. Every man,
machine and mater’als are put to maximum use.
j) Higher efficiency:
This type of organization may permit higher efficiency. This is because of
specializ ation. Again there is timely mainte - nances and repair of
machines. There is also maximum possible use of resources. -rhus, there
can be maximum returns at minimum costs.
Check your progress:
1. Explain the merits/advantages of functional organization.
munotes.in

Page 31

31 Formal Organisation 2.7.2 (c) Demerits/ Disadvantages of Functional Organization.
(1) No unit of command:
As each worker receives orders and in - structions from several bosses, he
is responsible to several bosses rather than one boss.
(2) Divided responsibility :
The system mak es use of the principal of divided responsibility. This gives
rise to duck -principal and it cre - ates the Droblems of pinpointing
responsibility for unsatisfactory results.
(3) Conflict:
One supervisor’s view point may not mach with that of another. One
supervisor may be more approachable and person - able than the others.
This may lead to conflict among foremen.
(4) Unsuitable for non -manufacturing unit:
Experience has shown that this system is not suitable for non -
manufacturing units.
(5) Delay in decision -making:
Ther e is considerable delay in deci sion making involving all functions, as
several foremen have to be contacted before arriving at a common
decision.
(6) Lack of opportunities for training:
It reduces the opportunities for the training of all roun d executives to
ensure further leadership in the company.
(7) Difficulties of coordinating different functions:
Co-ordinating the varied functions of several specialist become difficult.
(8) Expensive:
Since it requires several foremen, the operating costs are more.
(9) Separation of planning from doing :
It is always advisable to have close coordination between planning and
doing but in functional organization, there is separation between the two.
(10) Divided control:
In functiona l organization there is di vided control and as such it may
create problems of discipline and order. munotes.in

Page 32

32 Sociology of Organizations
32 Check your progress:
1. Explain the demerits/disadvantages of functional organization.
2.7.3 Line -and- staff organization: Meaning and Definition:
A structure having only line exec utives may be possible in a very small
organization employing a few persons so that all levels are part of the
chain of command. Large sized organization have such levels which are
not part of the chain of command but perform a very useful role. Due to
the complexities of modern business, the line executive seeks specialist
opinion on a particular matter (s). These people, called staff personnel
develop ideas and provide advice to line executives. This form of
organization tries to retain the merits and to do away with demerit of both
the line and functional organization. This type combines the activities of
line executives and that of staff or adv’sors. The line executives are the
“doers” or commanders, whereas, the specialists are the “thinkers” or
advisor s.
The staff concentrates their attention upon the research and planning
aspects of business activities. While the line executives concentrate their
attention upon the implementation of the policy matters.
According to Louis Allen “Line refers to those pos itions and elements of
the organization. Which have the responsibility and authority and are
accountable for accomplishment of primary objectives. Staff elements are
those which have responsibility and authority for providing advice and
service to the line in attainment of objectives.”
The need for staff services is due to :
(a) The gro wth of large scale organization
(b) Technological developments and
(c) Continuous changes and uncertainties in business environment.
There are three main types of staff: -
(1) Personal staff: Example of private secretary
(2) Specialized staff: Such as financial advisors, research personnel, legal
experts etc.
(3) General staff: Example of assistant to general manager.
munotes.in

Page 33

33 Formal Organisation Check your progress: -
1. Explain the meaning and define Li ne- and —staff organization.
2.7.3 (a) Features/characteristics of Line -and-staff organization:
(1) Planning and execution: There are two aspects of administration in
this organization viz, planning and execution.
(2) Combining line and staff: Planning function is entrusted to staff
specialists who are ‘‘thinkers” while execution function is given to
line executives who are “doers”. The staff is supportive to line.
(3) Role of authority: The line managers have authority to take decisions
as they a re concerned with actual productio n. The staff officers lack
such authority.
(4) Guidance from staff: The staff provides guidance and advice to line
executives when asked for. Moreover, the line executives may or may
not act as per the guidance offered.
(5) Exercising control: The staff managers has authority over
subordinat es working in his department.
(6) Scope for specialization: There is wide scope for specialization in
this organization as planning work is given to staff and execution
work is given to line executive.
(7) Possibility of conflicts: Conflicts between line and staff executives
are quite common in this organization but can be minimized through
special measures.
(8) Suitability: Line and Staff organization structure is suitable to large -
scale business.
Check Your Progress:
1. Explain the features/characteristics of Line -and —staff organization.
2.7.3 (b) Advantage/Merits of Line and Staff Organization:
(1) It facilitates the workers to work faster and better. munotes.in

Page 34

34 Sociology of Organizations
34 (2) Specialization is att ained when the staff officers concentrate on
planning the function and the line officers concentrate on execution
function.
(3) It enables the organization effectively to utilize the staff officer’s
experience and advice.
(4) The line officers can take sou nd decision with the help of proper
advice from the staff offic ers.
(5) A new technology or a new procedure may be introduced in the
organization without any dislocation.
(6) A new variety of responsible jobs can be given to skilled workers.
(7) The work o f line officers would be reduced to some extent if they
are relieved of the work of taking decisions.
(8) It promotes the efficient functioning of the line officers.
(9) The principle of unity of command is followed in the line and staff
organization. Henc e, the line officers can maintain discipline among
the workers and exercise control over the workers.
(10) A very good opportunity is made available to the young persons to
get training.
Check Your Progress:
1. Explain the merits/advantages of Line and s taff organization .
2.7.3 (c) Demerits/Disadvantages of Line and Staff Organization:
(a) If the powers of authority pertaining to the line officers and staff
officers are not clearly defined, there may arise confusion
throughout the organization.
(b) It is very difficult to control the line officers when they reject the
advice of the staff officers.
(c) The line officers may reject the advice without assigning any
reasons for their action.
(d) The staff officers may underestimate the authority of li ne officers.
The reason is that they are superior to the line officers.
(e) The staff officers are not involved in the actual implementation of
the programme. So, it is not obligatory on their part to give advice
with care and caution. munotes.in

Page 35

35 Formal Organisation (f) The staff office rs are not responsible if favo urable results are not
obtained.
(g) It requires the appointment of staff officers who are specialized in
various areas. It increases the administrative expenses of the
organization.
(h) There is no authority to the staff offi cers to compel the line officers
to accept and implement the advice given by them.
(i) There is a communication gap between line officers and staff
officers. It reduces the degree of co -operation between them.
§) The differences of opinion between line off icers and staff officers
will defeat the very purpose of specialization.
(k) The line officers may misunderstand the advice given by the staff
officers and proper results can not be obtained. Sometimes, the staff
officers can not give unambiguous advice to the line officers.
(I) Line officers blame the staff officers for unfavo urable results and
want to get rewards for favo urable results.
(m) Frequently, the line officers want to get advice from the staff
officers not only on important matters, but also on ordinary matters.
It reduces the effectiveness of control of line officers.
Check Your Progress:
1. Explain the demerits/disadvantages of Line and Staff organization.
2.7.4 Meaning and Definition of Tall organisation structure :
Span of control dir ectly affects the number of managerial levels in any
organisation. As such, it determines the organisation structure. A tall
Structure is one in which spans of supervision are narrow, i.e. each
supervisor directs the activities of, for example, only two, t hree or four
persons, and the hierarchical levels are numerous (there may be as many
as 7 or 8 rings on the organizational ladder). This type of organization
structure makes close supervision possible and allows the supervisor to
communicate with his immed iate subordinate on a more constant basis.
According to James Worthy, “Tall structure often results in over -
specialization and over -functionalization of activities and job assignments.
Individuals work under close, constant supervision, therefore, they ma y be
exposed to undue pressure from the formal hierarchy, superior subordinate
relations are strained as a result of intense supervision and control.”
munotes.in

Page 36

36 Sociology of Organizations
36 Check Your Progress:
1. Explain the meaning of Tall Organization Structure.
2.7.4 (a) Advantages /Merits of Tall Organization:
(1) The quality of performance is likely to improve due to close
supervision.
(2) It develops better and closer superior subordinate relations.
(3) Control and supervision becomes more easier and convenient.
(4) Good discipli ne at all levels because of fewer subordinates.
(5) There is less distortion in communication between superior and
subordinates.
(6) The manager gets more time to plan, and to organize future
activities.
(7) It encourages development of staff groups such a s advisors.
(8) The efforts of the subordinates can be easily co -ordinated as there
are fewer subordinates at each leve!.
Check Your Progress:
1. Explain the merits of Tall Organization Structure .
2.7.4 (b) Demerits/Disadvantages of Tall Organizat ion:
(1) It creates many levels of management.
(2) There is often delay and distortion in communication between levels.
(3) It becomes difficult to co -ordinate activities of the various levels.
(4) It is expensive as more number of supervisors/managers ar e required
at each level.
(5) Decisions and actions are delayed when it involves different levels.
(6) There is strict supervision and as such subordinates lack freedom. munotes.in

Page 37

37 Formal Organisation (7) Superiors may become more dominating.
(8) It is not suitable for routine and stand ardized activities.
Check Your Progress: -
1. Explain the demerits/disadvantages of Tall Organization.
2.7.5 Meaning of Flat Organization:
In flat organization, the span of control is usually large (sometimes as
many as 30 or 40 people) and there are few management levels. There
may be only three or four steps from the top of management to the bottom.
Such organisation with wider span qf control and few management levels
is called as “Flat organization.”
Check Your Progress:
1. Explain the meaning of Fla t Organization.
2.7.5 (a) Merits/Advantages of Flat Organization:
(1) Less Expensive: - It is less expensive as few managers are required,
Therefore, there are less overheads.
(2) Quick action: - Quick action can be taken involving various levels in
the organization.
(3) Quick Communication: - There can be quick communication among,
the various levels in the organization.
(4) Co-ordination: - There can be good co -ordination in undertaking the
various activities among the various levels.
(5) It creates fe wer levels of management.
(6) Subordinates are free from close and strict supervision and control.
(7) It is more suitable for routine and standardized activities.
(8) Superiors may not be too dominating because of more number of
subordinates. munotes.in

Page 38

38 Sociology of Organizations
38 Check Your P rogress:
1. Explain the merits/advantages of Flat organization.
2.7.5 (b) Demerits/Disadvantages of Flat Organization:
(a) Loose Control: There are chances of loose control as there may be
more number of subordinates under one manager.
(b) Problem of discipline: The discipline in the organization may get
affected due to loose control.
(c) Superior —subordinate relations: The relations between the
superiors and subordinates may get affected. Close and informal
relations may not be possible.
(d) Probl em of team work: Since there are several subordinates under
one manager, there may be problems of team work.
(e) It may create problems of co -ordination between the various
subordinates.
(f} It requires more ability and experience on the part of the superi or to
handle a large number of subordinates.
(g) It may not be feasible for complex nature of activities.
(h) The quality of performance may be affected. It is to be noted that
now-a-days organizations tend to become more flatter due to: -
(a) There is a ne ed to reduce overheads.
(b) Non-availability of competent managers.
(c) Tendency to centralize certain important matters.
(d) Computerization in the organization.
(e) Desire for uniform policies.
(f) Professionalism in managing subordinates.
Check Your Pro gress:
1. Explain the demerits/disadvantages of Flat organisation. munotes.in

Page 39

39 Formal Organisation 2.8 SUMMARY Formal organization is created deliberately and consciously by the framers
of the orga nization. It is hierarchical, pyramid shaped in the structure. It
can be shown in the form of a chart.
Various types of structures such as Line organization, Functional
organization, Line -and-staff organization; & Tall and Flat organization
have been discu ssed in detail in this unit.
2.9 GLOSSARY (1) Organization: is a process of achieving certain set of goals.
(2) Formal organization: It is structured on certain definite basis of legal
norms and values.
(3) Departmentalization: It is dividing the work into several specific
groups or departments.
(4) Informal organization: This structure is based on personal and
informal relationships between and among the employee.
(5) Tall organization: Organization with narrow span of control and
many levels of management .
(6) Flat organization: Organization with wider span of control and few
management levels.
2.10 QUESTION 1. What do you mean by organizational structure. Explain the features,
merits and demerits of Formal organization.
2. Explain the features, advantages and disadvantag es of Functional
Organization and Line Organization
3 Write a brief note on Line and Staff Organization?
4 Differentiate betw een Tall and Flat Organization?
2.11 REFERENCES  P.Subba Rao: - Human Resource Management and Industrial Reltions.
 Mamoria and Gankar: - Personnel Management
 Kale and Ahmed: - Management and H uman Resource Development
 K. Aswathappa: - Organizaional Behaviour
 Stephen R. Robbins: - Organizational Behaviour

***** munotes.in

Page 40

40 3
INFORMAL ORGANIZATION -MEANING,
SIGNIFICANCE AND IMPA `CT ON
FORMAL ORGANIZATION
Unit Structure
3.0 Objective
3.1 Introduction
3.2 Meaning and Definition of Informal Organization
3.3 Characteristics/Features of Informal Organization
3.4 Reason for the emergence of informal organization
3.5 Importance of Informal Groups
3.6 Functions of Informal Groups
3.7 Advantages/Benefits/Merits of Informal Organization
3.8 Limitations/Demerits of Informal Organization
3.9 Norms and roles in informal organiza tion
3.10 Managing the informal organization
3.11 Formal organization Vs Informal organization
3.12 Harmonising formal and Informal organization
3.13 Summary
3.14 Glossary
3.15 Question
3.16 Suggested Readings
3.0 OBJECTIVES  To enable the student to understand the meaning and importance of
Informal organization.
 To facilitate the students to understand the difference between formal
and Informal organization.
3.1 INTRODUCTION Informal organization is the structure which does not possess any official
position, It is a small group where members on their own develop primary,
face to face relationships. These structures grow within the formal
organization. Such groups provides satisfaction to the members, they have
their own norms, have separate status and style of working. Informal
organization serves as a source of protection against threatening
oppressive forces. It helps its members to find solution to mutual and
personal problems. munotes.in

Page 41

41 Informal Organization-Meaning, Significance and Impact on Formal Organization 3.2 MEANING AND DEFINITIONS OF INFORMAL ORGANIZATION No business, howeve r, operates completely by 1114 book.” In a real
business setting, the relationship that actually exists amongst the
employees does not follow formal lines. Employees in one department
know those in other departments. They may need information about the
acts of indiscipline in a particular department or some advice on delicate
matters regarding the handling of jobs etc. The associations of persons, in
such cases, come under “Informal organizations”. These associations may
be among employees on the same level of the hierarchy or on different
levels. They may even cross unit or plant lines.
An informal organization is any joint personal activity without conscious
joint purpose although it may contribute to joint results. The informal
organization can be viewed as a shadow organization. It arises naturally,
spontaneously from the interaction of people. it refers to unofficial and
unauthorized relationships that inevitably occur between individuals and
groups within the formal organization.
Informal organization e xist within the confines of the formal authority
structure. The informal organization consists of a group of people who
relate to each other spontaneously for various purposes of mutual benefit
and achievement. IT is a primary source for information and fu rtherance
of social ties. It provides members with useful information and knowledge
(though the grapevine) which may supplement or complement formal
communication. It also serves as a source of protection against
threatening, oppressive forces. It helps it s members to find solutions to
mutual and personal problems.
The interactions that occur informally are neither prescribed by the formal
structure nor can they be completely controlled by formal authority. The
informal group sometimes act in support of for mal goals and objectives
but it is equally capable of opposing formal guidelines.
Informal organization can not be shown by charts or manuals, nor can it be
established by top management. There is no formal purpose for this type
of relationship. It is base d on personal attitudes, likes and dislikes etc.
Informal relations can exist between the superior and subordinates. An
informal organization provides social satisfaction to group members. It is
the best means of human communication. The grapevine is the c hannel of
informal communication. Informal organization exerts great influence on
the morale of the person. Since, morale and productivity are bound to
influence group attitudes and behaviour; management can not ignore these
social organizations.
In the wo rds of Keith Davis, “Informal organization is a network of
personal and social relations not established or required by the formal
organization but arising spontaneously as people associate with one
another.” munotes.in

Page 42

42 Sociology of Organizations
42 Informal organization is the structure which do es not possess any official
position. It is a small group where members on their own develop primary,
face to face relationships. These structures grow within the formal
organization. Such groups provide satisfaction to the members; they have
their own nor ms, have separate status and style of working.
Check your progress:
1. Explain the meaning of Informal Organization.
3.3 CHARACTERISTICS/FEATURES OF INFORMAL ORGANIZATION (1) It is unwritten and develops unconsciously.
(2) It is not governed by a ny established rules.
(3) It exists within a formal organization.
(4) It uses grapevine as a means of communication.
(5) It brings people together to realize common interests.
(6) It helps to develop close relationship within the group through
personal and social ties.
(7) Informal organization forms its own norms and the members follow
them.
(8) There is informal leader who leads the group and supervises its
activities.
(9) The members feel free to express themselves and thus reconfirms
the sense of securi ty.
(10) The members, though loyal to their informal group, do not go
against the formal organization.
(11) The members encourage each other and indirectly contribute to their
personality development.
(12) The informal organization does not have any presc ribed rules to
follow but members see that the set norms are obeyed.
munotes.in

Page 43

43 Informal Organization-Meaning, Significance and Impact on Formal Organization Check your Progress:
1. Explain the features/characteristics of Informal Organization.
3.4 REASONS FOR THE EMERGENCE OF INFORMAL ORGANIZATION Basically, the informal organization emerge s because the formal structure
does not satisfy all employee and organizational needs. Formal
organization fails to describe the dynamic relationships between members
in the organization. Informal relationships develop within any formal
structure and manag ers do not have a choice. It is important for the
managers to understand the informal organization and channel its energies
toward organizational goals. The informal organization presents many
opportunities for motivating employees, resolving conflicts and creating
worker satisfaction.
(1) Psychological Fatigue of routine tasks:
Simple and routine tasks in the office and in the factory can have an
undesirable influence on the workers. Under such conditions, personnel
can become bored by their tasks and ind ifferent to their work and may
experience psychological fatigure, unable to relate their jobs to final
output, workers suffer from feelings of meaninglessness, workers also feel
powerless to control factors within the environment. Under such
distasteful co nditions, informal relations in the organizations serve to
preserve the organization from the self destruction that would result from
literal obedience to formal policies, rules, regulations and procedures.
Informal organization fill the psychological void /vacuum created by dull,
boring and monotonous jobs. It has the capacity to overcome deficiencies
built into the formal structure.
(2) Desire to Socialize with others:
Most people like to socialize in order to satisfy more of their social and
ego needs on the jobs. Informal organization provides social satisfaction.
Affiliation with the informal groups is more than just friendship, it is a
sense of belonging. It gives a man recognition, status and future
opportunity to relate to others. Informal organizati on acts like a ‘Safety
Valve’ to release daily tensions and frustrations on their jobs. The
informal organization will lend a sympathetic ear to their troubles and will
give an opportunity to ventilate their grievances.
munotes.in

Page 44

44 Sociology of Organizations
44 (3) Source of Protection:
Informal organization offers a powerful protection against threatening and
oppressive forces. Informal organization increases the feeling of security,
it restores some internal and external human values lost because of efforts
to achieve efficiency by oversimplifyi ng work. Informal organization
serves as balancing functions by giving satisfaction to individual members
that the formal structure can not give. It also assures members a
reasonable degree of stability in their interpersonal relationship. In an
informal o rganization, the rules for behavior are set by the members not
by the management.
Check your progress:
1. Explain the reasons for the emergence of informal organization.
3.5 IMPORTANCE OF INFORMAL ORGANIZATION The results of various studies indi cate the following importance of the
informal groups: -
(a) Informal group dynamics are important.
(b) Informal group norms would develop which could undermine formal
working relations.
(c) Informal group norms developed over what was to count as an
accepta ble day’s work despite what management thought.
(d) Such informal group norms were important to the workers even to the
extent that an individual worker might refuse promotion if it meant
leaving the group.
(e) If management takes an interest in the work f orce and allows them
some control over their environment then the work force would feel
less alienated from the work place.
Where norms of cooperation and high output are established because of a
feeling of importance, physical conditions may have little i mpact.
Informal group play a significant role in the dynamics of organizational
behaviour. The major difference between formal and informal groups is
that the formal group has officially prescribed goals and relationships,
whereas the informal one does not . The two types of groups co -exit and
are inseparable. Every formal organizations has informal groups, and
every informal organization eventually evolves some semblance fo formal
groups. Both the groups grow simulataneously. munotes.in

Page 45

45 Informal Organization-Meaning, Significance and Impact on Formal Organization Check Your Progress:
1. Explai n the importance of Informal Organization.
3.6 FUNCTIONS OF INFORMAL GROUPS (1) Relief from monotony, boredom and fatigue:
An important function of the informal group is to mitigate the harsh
routine, discipline and consequent boredom and fatigue which arise from
the nature of industrial production.
(2) Opportunities for Status:
The informal group may provide alternative roads to the acquisition of
status (higher status) than could be secured through the formal structure.
The informal group provi des opportunities for acquiring and increasing
prestige in an informal hierarchy of status as to alter the formal definition
of status in the industrial bureaucracy in their own favour. Thus, it relieves
strain in the worker.
(3) Increased flow of emotiona l responses:
On the one hand , the informal group brings together workers who are
congenial in character and solidifies relationships between those who
occupy adjacent places in the productive processes or who must work
together at a common task. On the ot her hand, the informal group
increases emotional response by increasing the rate of interaction of the
workers who are grouped together. The group provides channels for a flow
of conversation, the exchange of ideas, the communication of attitudes and
the s haring of values. Thus, it serves to mitigate the affective neutrality
and universalism of the worker’s role; it provides an alternative outlet to
an aspect of the worker’s personality for which there is no need or room in
an industrial bureaucracy.
(4) Opportunity for independence:
Some informal groups provide the workingmen with opportunity for
independence and spontaneity. In many cases, it increases the worker’s
freedom and independence of bureaucratic discipline. The informal group
often furnishes the illusion of independence rather than genuine
independence. Thus, we can say that the informal group is more important
as a symptom of the strivings of the worker than as an answer to those
striving.
munotes.in

Page 46

46 Sociology of Organizations
46 (5) Increased Security:
The major function of the infor mal group is the attainment of economic
security in the face of the double threat arising from technological change
and fluctuation in the business cycle. Informal group is very much
concerned with the maintenance of security. The function of the informal
group is to discipline its members into compliance with the management’s
goals. Membership in an informal group usually ensures compliance with
the informal standards.
In sum, the main functions of informal organization are as follows:
(a) It reinforces e ach member’s individual personality.
(b) It protects one another from authoritative action.
(c) It provides opportunity to display creativity.
(d) It reduces the burden of supervision.
(e) It provides feedback to the managers.
Check your Progre ss:
1. Expl ain the functions of Informal Organization.
3.7 ADVANTAGES/BENEFITS/MERITS OF INFORMAL ORGANIZATION The values of the informal organization which can make a great
countribution to organizational effectiveness are outlined below:
(1) Benefits to wo rk groups :
The informal organization protects the individual against arbitrary
treatment by management against harsh work environment. The informal
structure counteracts the cold and inhuman qualities of the formal
structure by providing a means for develo ping friendships and being
accepted by fellow workers. It provides satisfaction and stability to work
groups.
(2) Supports formal structure :
The formal structure is viewed as one side of the “organization coin”
while the informal structure is viewed as the other. The informal
organization helps the formal organization in many ways and without its
support the formal structure would be like a “house built on sand.” munotes.in

Page 47

47 Informal Organization-Meaning, Significance and Impact on Formal Organization Informal systems “blend with formal systems to make a workable system
for getting the work done .” Formal plans and policies can not meet every
problem in a dynamic situation because they are pre -established and partly
flexible. Some requirements can be met better by informal relations, which
can be flexible and spontaneous.
(3) Useful Communication device:
The informal organization provides the management with an additional
channel of communication in the form of ‘grapevine’. By utilizing the
grapevine within the formal structure, management can transmit
employees accurate and useful information quic kly.
(4) Compensates for managerial limitations; -
The informal organization can fill in the managerial gaps by educating
people how to really perform the task.
In sum, the main benefits of informal organization are: -
(a) Workers work more and hence product ivity increases
(b) Workers show support to the organizations
(c) Workers can be better controlled.
(d) Workers show loyalty.
(e) Workers become sincere and usually do more work than the quota as
fixed by the management.
(f) Informal organization provides relief, happiness and enjoyment of life
to the workers. They find their work more meaningful.
(g) Informal organization provides security to the workers.
Check your progress:
1. Explain the merits/benefits/advantages of informal organization.
3.8 LIMITATIONS/DEMERITS OF INFORMAL ORGANIZATION (1) Works counter to organization objectives:
Informal relationships can be employed to pressurize employees and
restrict their output. , exhibit a disinterest in organizational policies and munotes.in

Page 48

48 Sociology of Organizations
48 procedures, cause insubordination, and in general, promote unauthorized
actions that work counter to the formal organizations.
(2) Conformity:
Informal organization exerts strong pressures for conformity. Conformity
can make group members reluctant to act independently, creatively or
assertively, for fear of losing group approval and membership. Sometimes,
informal group leaders manipulate the group toward undesirable needs.
They may force members to restrict output, to exceed the time limit for
coffee break, to indulge in intolerable activities taxing the patience of the
management. In this fashion, the informal group can become “an
instrument of neurotic sowers of conflict or non -responsible rattle -rousers
using the group for their own selfish ends.”
(3) Social Costs:
Informal organization undoubtedly, is a safety valve for the frustrations
and other emotional problems of workgroup. Studies have also noted the
view that social interaction by alleviating monotony on the job may
actually contribute to production. But this is true up to a certain point.
Allowing informal groups to engage in gossiping, Joke telling and general
horse play or idle conversation that satisfy some of the member’s social
needs results in higher operating costs .
(4) Rumours:
Quite often, grapevine is susceptible for use in spreading destructive,
distorted, inaccurate and incomplete information cutting across
organizational lines with tremendous speed. Where the formal
communication system is poor, such rumours prosper. When employees
are not kept info rmed on matters that directly affect them, they may
transmit incorrect information that undermines morale or leads people to
make poor and mediocre decisions.
(5) Resistance to change:
Every group promotes certain cultural values, norms which it considers
desirable. In course of time, members zealously guard these values
resulting in a perpetuation of the status quo. Any intended change by the
management forcing alteration of shared values, real or perceived is
vehemently resisted. If the member perceive t hat a layoff is imminent
consequent to the introduction of such policies like rationalization
automation, computers etc., they try to stand like a rock resisting such
changes with all their might. ‘‘Perception of threats are just as real in the
formation a nd solidifications of an informal organization as an actual
threat.
In sum, the main limitations of Informal organization are: -
(a) It puts up resistance to change.
(b) It spreads rumours through grapevine. munotes.in

Page 49

49 Informal Organization-Meaning, Significance and Impact on Formal Organization (c) It may use the group as a protective shield a gainst the management
(d) It may wipe out individual identity because group dominates.
Check Your Progress:
1. Explain the limitations/demerits of informal organizations .
3.9 NORMS AND ROLES IN INFORMAL GROUPS Norms are the rules of behavior. They are prescriptions for acceptable
behaviour determined by the group. Norms will be strongly enforced by
work groups if they: -
(a) Aid in group survival and provision of benefits.
(b) Simplify or make predictable the behaviour expected of group
members.
(c) Help the group avoid embarrassing interpersonal problems.
(d) Express the central values or goals of the group and classify what is
particular about the group’s identity.
Role of Informal group Members: -
A role consists of a pattern of norms, the use of the t erm in organization is
directly related to its theoretical use. A role is a position that can be acted
out by an individual.
Informal roles vary widely and are highly volatile. The same person may
have one role in one situation and different role in anothe r situation.
Team work: With increasing importance of teams in today’s
organizations, there is increasing recognization given to the informal team
member roles. There are four such roles: -
(1) Contributor: The role occupant provides information and data, i s
always prepared and pushes the team to set high performance goals.
(2) Collaborator : This team member focuses on the ‘big picture.’ He or
she tries to remind others of the vision, mission or goal of the team
but is flexible and open to new ideas, is wil ling to work outside the
defined role, and is willing to share the glory with other team
members. munotes.in

Page 50

50 Sociology of Organizations
50 (3) Communicator: This positive oriented team member is process
driven and is an effective listener. He or she plays the role of
facilitator, conflict resolvi ng, consensus building, and building an
informal relaxed atmosphere.
(4) Challenger: Known for criticizing or disagreeing with the leader or
higher authority, this member questions the team’s goals, methods
and even ethics. He encourages well conceived ris k taking.
Check your Progress:
1. Discuss the norms and roles in informal groups. 3.10 MANAGING THE INFORMAL ORGANIZATION The informal organization is an unintended complement to the
organization. It emerges on its own without conscious intent as natu ral and
human consequence of the host task organization. It is an inevitable part of
organizational life. Like it or not, managers must understand that the
informal organization exists and can not be worked away, banished or
outlawed. Attempts to disperse with it without understanding its causes
and processes can lead to harmful consequences. As such the manager
must learn to accept it, deal with it and integrate it with the formal
organization. In dealing with informal organization, managers should be
careful not to transgress the informal system resulting in reactive
behaviour that blocks formal goals. He must recognize and respect the
values, beliefs, norms and loyalties of the group and operate accordingly.
More specifically, a manager should :
(a) Let employees know that he accepts and understands informal
organization
(b) Consider possible influence on informal system when taking action.
(c) Integrate the interests of informal groups with those of the formal
organizations.
(d) Keep formal activities fr om unnecessarily threatening informal
organization in general.
Check Your Progress:
1. Write a brief note an managing the informal organization. munotes.in

Page 51

51 Informal Organization-Meaning, Significance and Impact on Formal Organization 3.11 FORMAL ORGANIZATION VS. INFORMAL ORGANIZATION ; OR DISTINCTION BETWEEN
FORMAL AND INFORMAL ORGANI ZATION (1) Formal organization is crated by top management deliberately and
consciously. It is a prescribed structure. Informal organization
develops by social forces existing within the formal organization. It
is a natural and spontaneous formation.
(2) Formal organization can be Shown through organization charts.
Informal organization can not be shown through organization charts.
(3) In formal organization, the superior subordinate relationship is
clearly defined. In Informal organization, the superior su bordinate
relationship is absent.
(4) In formal organization, Communication is normally through formal
channels.
In Informal organization, communication is normally through
grapevine.
(5) Formal organization is suitable to large business enterprises.
Infor mal organization is suitable to small business enterprises.
(6) Formal organization operate as per rules, systems and procedures.
Informal organization operate as per informal understanding and
conventions.
(7) Formal organization is a stable type of organ ization structure. There
is no stability to informal organization.
(8) Formal organization exists and operates independently. Informal
organization exists and operates within a formal organization.
(9) In formal organization, the members get authority thro ugh
delegation or due to their official position. In informal organization,
some members may command more authority by virtue of their
personal qualities.
(10) In formal organization, rewards are monetary and non -monetary
whereas punishment is for breaking rules.ln Informal organization,
reward is continuation of group membership whereas punishment
may be removal from the group.
(11) Formal organization is built around jobs. Informal organization is
built around people and their roles.
(12) Formal groups ma y be terminated by organizational process or
automatically when formed for specific purpose or period.
Informal groups are difficult to terminate by organizational process. They
may be terminated automatically when the relationships become sour. munotes.in

Page 52

52 Sociology of Organizations
52 Check Your Progress:
1. Distinguish between formal organization and informal organization.
3.12 HARMONIZING FORMAL AND INFORMAL ORGANIZATION Both formal and informal organizations are necessary for a large
enterprise. The management can communicate quickl y through the
grapevine within the informal structure. It is advisable that management
integrates both these organizations in order to attain corporate goals.
Formal and Informal organizations are interdependent aspects of social
interaction. Both can be r econciled and used profitably. A formal
organization should be designed in such a way that informal groups
through their leaders are closely associated in the decision making
process. The groups not only influence decision -making but they also
contribute t o its implementation. Since informal organizations can not be
eradicated, managers should make them work for the accomplishment of
the common goals by taking the following steps: -
(1) Informal relation, which serve the company well, should be
incorporated into the formal structure.
(2) The acceptance of informal groups by the management.
(3) Some form of feedback from informal organization must be
established.
(4) In designing a formal organization structure, the ‘team’ concept
should be adopted.
(5) The ma nagement may accept informal leader into formal authority.
Check Your Progress:
1 Write a brief note on harmonizing formal and informal organization.
munotes.in

Page 53

53 Informal Organization-Meaning, Significance and Impact on Formal Organization 3.13 SUMMARY Informal organization is based on informal, primary, face to face and
direct relati onship between the co -workers unlike the cold, formal and
secondary relationship of the formal structure. It is created because of the
operation of socio -psychological forces at the workplace. It tends to be
small in size. There are no rigid behaviour norm s as people freely
exchange ideas and feeling. Informal relations which serve the company
well should be incorporated into the formal structure.
Both formal and informal organizations are necessary for a large
enterprise. Management should integrate both t hese organizations in order
to attain corporate goals.
3.14 GLOSSARY (1) Informal Group : - The group having personal, face to face, direct and
sentimental relationships.
(2) Primary Group : - The group which is close and iritimate.
(3) Human Relations: -An A pproach to consider employees as human
beings with own desires, motives, feelings and views.
(4) Formal Organization: - It is structured on certain definite basis of legal
norms and values.
(5) Informal Organization : - This structure is based on personal an d
informal relationships between and among the employees.
3.15 QUESTION Q.1 What do you mean by Informal organization? Explain its
characteristics and importance.
Q.2 Explain the reasons for the emergence of informal organization.
Q.3 Distinguish between Formal and Informal organization.
Q.4 Explain the advantages and limitations of informal organization.
3.16 SUGGESTED READINGS  P.Subba Rao — Human Resources Management and Industrial
Relations.
 E.V.Schneider — Industrial Sociology.
 Mamoria and Gankar — Personnel Management.
 K. Aswathappa — Organizational Behaviour.
 A.M. Sarma — Personnel and Human Resource Management.
***** munotes.in

Page 54

54 UNIT II
4
ORGANIZATIONAL PLANNING
Unit Structure
4.0 Objectives
4.1 Introduction
4.2 Importance of Organisational Planning
4.3 Factors affecting Organisational Planning
4.4 Demand Forecasting
4.5 Supply Forecasting
4.6 Conclusion
4.7 Summary
4.8 Questions
4.9 References
4.0 OBJECTIVES  To introduce the learners with the concept of Organisational Planning,
Demand and Supply Forecasting
 To understand the importance of Organisational Planning
 To understand the loopholes involved in the process of Organisational
Planni ng
4.1 INTRODUCTION Identification of an organization’s short - and long -term goals, as well as
the formulation and oversight of detailed plans to attain them, constitute
organizational process.
Human Resource Planning (HRP) or manpower planning is the meth od
that ensures that the appropriate number and types of employees are
present in the right spot at the right time, capable of successfully and
efficiently accomplishing those duties that assist the organization
to achieve its goals. According to Stainer, “manpower planning” is “a
strategy for the acquisition, utilization, enhancement, & maintenance of an
enterprise’s people resources.”
4.2 IMPORTANCE OF ORGANIZATIONAL PLANNING By creating plans that are intended to maximize the contribution of human
resources, human resource planning strives to preserve and enhance the
organization’s capacity to achieve its objectives. munotes.in

Page 55

55 Organizational Planning 1. To evaluate the levels of recruiting
2. To forecast layoffs and prevent unnecessary dismissals.
3. To establish the ideal training leve ls.
4. To serve as a foundation for management development programmers.
5. To reuse the workforce for future projects.
6. To help with productivity negotiating.
7. To assist the organization in identifying potential problems.
8. To examine the price of ove rhead and the worth of service functions.
9. To determine if certain activities should be outsourced
4.3 FACTORS AFFECTING HUMAN RESOURCE PLAN: Several factors affect HRP. These factors can be classified into
external factors & internal factors.
(A) Exte rnal Factors:
1. Government Policies:
Government policies such as labor policy, industrial relations policy, and
policies reserving particular employment for certain communities and
sons-of-the-soil, among others, have an impact on HRP.
2. Level of Econ omic Development:
The degree of economic development impacts the level of human resource
development in the country and, as a result, the supply of human resources
in the future.
3. Business Environment:
External business environmental elements impact pr oduction volume and
mix, and hence future need for human resources.
4. Information Technology:
How has information technology changed the way businesses operate?
Business process re -engineering, enterprise resource planning, and supply
chain management are examples of these changes. These developments
resulted in historically low levels of traditional human resources and a
surge in software professionals. However, these improvements
subsequently lowered the necessity for software professionals. In addition,
computer -aided technology (CAT) decreased the current human resources.
5. Technology Level:
The level of technology impacts the type of human resources necessary. munotes.in

Page 56

56 Sociology of Organizations
56 6. International Variables:
International factors such as human resource demand and supply in
various nations.
(B) Internal Factors:
1. Company Goals:
The company’s policies and strategies pertaining to expansion,
diversification, partnerships, and so on impact the quality and quantity of
human resources demand.
2. Human Resources Policies:
The company’s human resources policies on human resource quality,
salary level, work -life quality, and so on impact the human resources
strategy.
3. Job analysis:
A human resource strategy is fundamentally based on job analysis. Job
description and specifi cation. As a result, the job analysis identifies the
kind of employees needed.
4. Time Horizon:
Businesses in a stable competitive environment would plan for the long
term, whereas firms in an unstable competitive environment can only
prepare for the shor t term.
5. Information Type and Quality :
Any planning process requires qualitative and accurate information. This
is especially true for human resource plans.
6. Production/Operations Policy:
The company’s policy on how much to create and how much to ac quire
from outside sources to prepare a final product determines the number and
kind of personnel needed. External Factors Internal Factors Government Policies Strategies of the company Level of Economic Development including future supply of HRs Human Resources Policy of the company Business Environment Formal & Informal Groups Information Technology Job Analysis Level of Technology Time Horizons Natural Factors Type & Quality of Information International Factors Company’s Production Operations Policy Table Unions munotes.in

Page 57

57 Organizational Planning 7. Trade Unions:
The influence of trade unions on the number of working hours per week,
recruiting sources, and so on has an impact on HRP
4.4 DEMAND FORECASTING Demand forecasting is the practice of projecting the number and q uality of
employees needed to satisfy the organization’s future demands.
Employment or personnel planning is the process of determining the roles
the business will need to fill and how they will be filled. Personnel
planning encompasses all future employme nt in the organization, from
maintenance clerks to CEO. Demand forecasting is the process of
estimating the level of consumer interest in current goods and services,
figuring out what changes to make, and identifying what new offerings
will attract attenti on. Yet, anticipating what people would want, in what
amounts, and when is no easy task. Examples of very detailed timetables
are, “Should we ship more chips on Friday than Thursday?” They may
also cover a time frame, such as “during the course of the foll owing
calendar year” or “between now and a month from now.” Demand
forecasting is a broad topic and practitioners look at it from many
angles. Some believe that it uses historical and current sales data to
estimate future customer demand. But that means we can’t predict
demand for new products that are imprecise. In the meantime,
economic forecasting experts operate under the tacit assumption that
demand forecasts are about aggregate consumer demand, an important
consideration for firms trying to forecast demand from customers. You
may be ignoring it.
The confusion is understandable. The point is, demand forecasting is
essentially predicting what, how much, and when people will want it,
regardless of the circumstances.
Management bases employment plans, like all successful plans, on certain
future assumptions. When forecasting employment requirements, three
things are frequently required:
1. Personnel need
2. The supply of inside candidates &
3. The supply of outside candidates
The first step in forecasting P ersonnel Needs is to assess the projected
demand for the product. In addition to anticipated demand, personnel
planning may take into account:
1. Project turnover (as a result of termination or resignation). munotes.in

Page 58

58 Sociology of Organizations
58 2. Employee quality and competencies.
3. Strate gic decisions to improve product quality.
4. Technological or other advances that boost production.
5. The amount of funds accessible to one department.
Following are the several methods to predict employment needs:
1. Trend evaluation:
This is to invest igate the various patterns of employment in the company
during the last few years. The number of workers at the end of the year
might provide a solid indication of the character of employees, whether
they look for work or want to stay. The goal is to detec t a trend that may
persist in the future.
2. Ratio analysis:
Another technique to ratio analysis is to make estimates based on the ratio
between (a) a casual component (such as revenue or volume) and (b) the
number of personnel needed (for instance, numbe r of salespeople). To
raise extra output/income, it may be necessary to hire more salespeople
and then train them.
3. The Scatter Plot:
Shows visually how two variables, such as a measure of business activity
and the firm’s employment levels, are connecte d, i.e., how the business is
running and how many workers are working when the business is full.
Personnel requirements can be anticipated if the degree of company
activity can be projected.
4. Using computer to forecast personnel requirements:
Employers a lso employ computerized applications to predict their staff
needs. Typical statistics required include the direct labor required to
manufacture one unit of product (a measure of productivity) and three
sales estimates for the product in issue (minimum, max imum, and likely).
Based on such information, a typical software provides statistics on
average staff levels that may be necessary to satisfy product demand
needs, as well as distinct computerized projections for direct labor,
indirect labo ur, and exempt l abour.
5. Managerial judgement:
Forecasts must be revised based on factors such as predicted turnover or a
desire to enter a new market. Even for large corporations, establishing
personnel predictions is rarely a mechanical process.
Today, with the global crisis and market downturn, it is tough to see
forward, but many airlines in India have laid off a lot of employees as well
as potential employees from training facilities, implying fewer jobs in the munotes.in

Page 59

59 Organizational Planning future. Airlines also announced a 10% reduction in aver age compensation
for existing employees.
Conclusion:
All of these techniques demonstrate the necessity for modifications in
present goods, future marketing projections, technical advancement plans,
and the need for mergers, joint ventures, future organiza tional structure,
and recruitment policy .
4.5 SUPPLY FORECASTING Demand forecasting study allows managers to estimate the number and
kind of personnel that will be needed. The following logical step is to
assess if it will be feasible to obtain the necess ary number of employees
and the sources of such procurement. Supply forecasting provides this
information. After accounting for absenteeism, employee turnover,
internal moves and promotions, and changes in hours and other working
circumstances, supply fore casting determines the number of individuals
anticipated to be available from within and outside an organization.
Supply forecasting looks at data about suppliers (whether they are
supplying finished goods or assembled parts further down the supply
chain) and uses it to determine the quantity and Predict when. This helps
determine how many can be ordered and delivered in a given time
frame. Important data for supply forecasting is not limited to
production or supply capacity. Factors such as the economy, technology
and even the weather play a part.
The question is whether staffing requirements must be addressed by solely
filling or adjusting internal candidates or by external applicants. Most
companies begin with internal applicants.
A. Inside candidates fri sting inventory:
The major goal here is to assess whether present employees may be
qualified for the upcoming positions. This requires knowledge about their
existing work abilities and qualifications. Managers must rely on
qualification inventory. These provide information such as performance
awards and promotability. They assist managers in determining whether
present employees are eligible for advancement or transfer. These
inventories might be either manual or electronic.
Manual inventories:
Each emp loyee’s qualification information is included in a personnel
inventory and development record. Education, company -sponsored
courses completed, career and development interests, language and
abilities are all part of the material .
Personnel replacement char ts:
Displays the current performance and promotion prospects of each
position’s possible replacement. munotes.in

Page 60

60 Sociology of Organizations
60 Computerized inventories:
Employees and the human resources department enter information on the
employee’s history, experience, and talents, frequently utilizing the
company’s interest. The system generates a list of qualified applicants
after scanning its database of potential candidates .
B. Forecasting the Supply of outside candidates: -
If there are insufficient internal applicants to fill the predicte d openings, it
is necessary to focus on predicting the availability of external candidates.
This might include a number of activities.
1. The overall economic situation.
2. Employment rates anticipated.
The lower the unemployment rate, the more difficult i t is to acquire
workers. Some jobs, such as IT professionals, are so in demand that they
appear to stay in demand even as the economy slows. With HR audits in
hand, planners may move on to internal supply analyses. The tactics often
employed for this purpo se include
a. inflows and outflows,
b. turnover rate,
c. working conditions and absenteeism, and
d. productivity level and job relocation.
4.6 CONCLUSION Realistic plans for advancement and development should be developed
after evaluating the macro an d micro environments that impact the
organization’s manpower objectives. Both demand and supply forecasting
are crucial tools for the organization’s development, since they assist it
accomplish its current and future goals.
4.7 SUMMARY A collection of tac tics and procedures called organisational planning are
used to make daily operations of a company more efficient. It entails
establishing priorities and goals, planning how resources and assets are
used, assessing and changing the organization’s business s trategy to keep
up with the changing environment, and making sure that all employees
and stakeholders are working towards the same goal —greater
organisational success. One of the essential activities required to steer a
firm in the proper direction and ave rt catastrophic errors that could
ultimately destroy business is organisational planning. It involves the
technique of Demand and Supply forecasting. Every aspect of an
organization’s operations must be kept in order, successful, disciplined,
and sustainab le thanks to the organisational planning process. When it munotes.in

Page 61

61 Organizational Planning takes into account staff from all departments, with varying degrees of
responsibility, potential, and talent, as well as how they fit into the overall
picture, it is essential.
4.8 QUESTIONS 1. Expl ain the concept of Organizational planning. Elaborate on various
methods involved in the process of organizational planning.
2. Explain Demand and Supply Forecasting
4.9 REFERENCES  P.Subba Rao — Human Resources Management and Industrial
Relations.
 E.V.Schneider — Industrial Sociology.
 Mamoria and Gankar — Personnel Management.
 K. Aswathappa — Organizational Behaviour.
 A.M. Sarma — Personnel and Human Resource Management.
 Gary Dessler — Human Resource Management
 Stephen p. Robbins — Organizational Behavior
 Kale & Ahmed — Management and Human Resource Development



***** munotes.in

Page 62

62 5
ORGANISATIONAL DEVELOPMENT (OD)
Unit Structure
5.0 Objectives
5.1 Introduction
5.2 Meaning and Definitions of Organizational Development (OD)
5.3 Characteristics/Features of OD
5.4 Assumptions of OD
5.5 Goals/Objectives of OD
5.6 Process of OD Programme
5.7 Organizational Development Intervention Techniques
5.8 Benefits and Limitations of OD
5.9 Introduction, Meaning and Definitions of Organizational Change
5.10 Types of Change
5.11 Reasons for change
5.12 Response to change
5.13 Resistance to change
5.14 Approaches to organizational change
5.15 Principles of Change
5.16 Planning and Implementing Change
5.17 Summary
5.18 Glossary
5.19 Questions
5.20 Suggested Readings
5.0 OBJECTIVES  To familiarize the students with the concepts of organizati onal
Development and organizational change
 To enable them to understand the features, goals, benefits and
limitations of OD.
 To provide detailed information about OD techniques.
 To acquaint them with the principles and types of change and also
with reasons for and resistance to change.
5.1 INTRODUCTION Organizational development (OD) is the systematic application of
behavioral science knowledge at various levels (group, intergroup and
total organization) to bring about planned change and also to increase the munotes.in

Page 63

63 Organisational Development (OD) organization’s effectiveness. The trend to emphasis improve interpersonal
relations as a means of organizational optimization has come to be known
as organizational Development (OD). in essence, OD is both an
educational strategy and an imple mented course of action or technique
which focuses attention on the whole culture of an organization in order to
bring about a planned change. OD seeks to change the organizational
environment in which a manager works. It aims at the improvement of the
total system to ensure that the full potential of a manager’s abilities is
utilized and there is a sustained change in his behavior which is conducive
to a better organizational performance.
5.2 MEANING AND DEFINITIONS OF ORGANIZATIONAL DEVELOPMENT (OD) Organ izational development is planned, Organization -wide, managed from
top to bottom,; it increases organizational effectiveness and health through
a planned intervention in an organization process, using knowledge of the
behavioural science.
O.D consists of pl anned, systematic, long -range behavioral science based
on collaborative efforts to change the internal human environment, culture
and other relevant sub -systems and processes of an organization through
an educational strategy with a view to ensuring that t he total organization
as a system becomes a more effective organic system, with enhanced
capability for solving problems and coping with the changing external
environment.
O.D. has emerged to help the planned change for organizational
effectiveness. O.D. i s the modern approach to management of change and
human resource development. O.D. concentrates on people dimensions
like norms, values, attitudes, relationships organizational climate etc.
Douglas MC Gregor served as a resource person to help Union Carbid e
Corporation to create an OD. Capability where OD. Department was set
up in 1962. French and Bell who have done most of the work on OD. feel
that laboratory training and survey feedback are the main stems of OD.
Sensitivity training programmes were conduc ted to managers under the
OD movement. OD is still developing and evolving.
OD is a broader concept and includes management development and
training as its sub -systems as the primary objective of OD is to change the
nature of the total organization. OD is not a separate discipline but it
heavily draws from other disciplines like psychology sociology,
anthropology etc. OD is based upon theory and research. OD is concerned
with people for increasing organizational effectiveness. 00 is also
concerned with impr oving organizational climate and culture.
The use of OD has been necessitated for obvious reasons. New forms of
organization, more organic and adaptable to change have emerged which
are characterized by less adherence to the chain of command, more
enlarged jobs and ‘theory -y’ values which emphasize openness, trust and munotes.in

Page 64

64 Sociology of Organizations
64 participative leadership. Further, to adapt to competitor’s new and unique
product or to face the emerging conflict between several departments
within the organizations, managers have turned t o OD.
Definitions of OD:
According to Bennis, “OD is a response to change, a complex educational
strategy intended to change the beliefs, attitudes, values and structure of
organizations so that they can better adapt themselves to new
technologies, market s and challenges, and the dizzying rate of change
itself. It aims at developing the organization into an `organic’ systems as
contrasted to the `mechanical systems. According to Wendell French, “OD
refers to a long -range effort to improve an organization’s problem -solving
capabilities and its ability to cope with changes in its external environment
with the help of external or internal behavioural -scientist consultants or
change agents, as they are sometimes called.”
Blake and Mouton observe that, “OD is sy stematic way of introducing
change based on a structural model for thinking; progressing in a
programmatic sequence of steps from individual learning to organization
application; focused upon those silent and often negative attributes of
culture which dict ate action that so frequently contradict business logic,
with emphasis on confronting and resolving conflict as a pre -requisite to
valid problem -solving, and employing a variety of technique of
organizational study and self -learning to bring about the nece ssary
change.”
Dale S.Beach defined OD as “ a complex educational strategy designed
to increase organizational effectiveness and wealth through planned
intervention by a consultant osing theory and techniques of applied
behavioural science.”
According to B urke, “OD is a planned process of change in
organization’s culture through the utilization of behavioural science,
technology, research and theory.”
OD can also be defined as a process that attempts to move the
organizations from where it is now (requiring diagnosis) to where it
should be (by action interventions).
OD has also been defined as a systematic application of behaviour science
knowledge at various levels ( group, intergroup, and total organization) to
bring about planned changes.
Thus, the main e lements of OD are as follows: -
(a) The OD approach to change is planned.
(b) It is a system -wide or at least takes a system perspective.
(c) It has both short term and long term plans.
(d) Processes are basically to be changed. munotes.in

Page 65

65 Organisational Development (OD) (e) Better problem solving a pproach is usually taken.
(f) OD involves human and social relationships.
OD is usually based on action research, which means collecting the data
about a group, department or organization. It’s objective include a higher
quality of work life, productivity, adaptability and usefulness. It seeks to
use behavioural knowledge to change the attitudes, values -beliefs of
employees, strategies, structures and practices of the organization so that
the organization can better adapt to competitive actions, technologic al
advances and the fast pace of other changes in the environment. The
general objective of OD is to change all parts of organization in order to
make it more humane, considerate, more effective and more capable of
organizational learning and self renewal.
Check your progress: -
1. What do you mean by Organizational development (OD)? Define the
term OD.
5.3 CHARACTERISTICS/FEATURES OF ORGANIZATIONAL DEVELOPMENT (OD) (1) OD is usually based on action research, which means collecting data
about a grou p department or organization and then feeding the data
back to the employees so that they can analyze it and develop
hypotheses about what the problems might be.
(2) It applies behavioural science knowledge.
(3) It changes the attitudes, values and beliefs of employees so that
employees themselves can identify and implement the technical,
procedural, structural or other changes required to improve the
functioning of the company.
(4) It changes the organization in a particular direction toward improved
probl ems solving, responsiveness, quality of work and effectiveness.
According to Newstrom and Keith Davis, the following are the
distinguishing characteristics of OD approach: -
(a) Humanistic Values:
All humans desire expansion of their skills and increase t heir contribution.
This is the assumption of OD approach. For this, there is need for open munotes.in

Page 66

66 Sociology of Organizations
66 communication to have interpersonal trust, shared power and constructive
confrontation.
(b) Use of a change agent:
The agent is the person, who stimulates and coord inates change. He
remains free but he encourages change within the system. Outside change
agent may be objective and experienced. Any manager may act as a
change agent and initiate change. But outside agent may also be
appointed, he requires full coordinat ion from the organization and from
everybody. He suggests some improvements efforts which should be
accepted by top management.
(c) Problem Solving :
OD emphasizes the process of problem solving. IT trains participants to
identify and solve problems that are important to them. These may be
related to their job or to their relationships. This requires employees to
locate the areas of problems; gather data about them, suggest solutions in
order to work better. There is also need to assess, progress and make
ongoing adjustments.
(d) Experiential learning:
This is learning based on experiences. Our experiences tell us our mistakes
if any and we can learn from these mistakes. Avoiding error and injustice
to any can make management more efficient and effective.
(e) Interventions at many levels:
The general goal of organizational development is to build more effective
organization i.e. to adopt new processes and improve. Whatever problems
occur, they can be solved immediately. This can make the organization
more effective.
(f) Contingency Orientation:
This is the approach to take decisions on the spot. There is no fixed
programme in advance.
In sum, various authors have attempted to clarify the chief characteristics
of OD. They are: -
(1) OD is an educational str ategy which attempts to bring about a planned
change.
(2) It is related to real organizational problems instead of hypothetical
classroom cases.
(3) It uses sensitivity training methods and emphasizes the importance of
experimentally based training.
(4) It’s change agents are almost external consultants outside of the
organization. munotes.in

Page 67

67 Organisational Development (OD) (5) External change agents and internal organization executives establish
a collaborative relationship involving mutual trust and influence, and
jointly determined goals.
(6) External change agents are humanists seeking to establish a social and
altruistic philosophy within an organization.
(7) The goals that the change agent seeks to accomplish through OD tend
to reflect Theory ‘y’, he aims for better conflict resolution, increas ed
understanding and more considerable leadership.
(8) The organizational changes sought are usually the result of some
“exigency or outside problem.”
French and Bell suggest that OD contains more of:
(a) An emphasis, although not exclusively so, on group and
organizational processes in contrast to substantive content.
(b) An emphasis on the work -team, as the key unit for learning more
effective models of organizational behaviour.
(c) An emphasis on the management of the culture of the total system and
total system ramifications.
(d) The use of the action research model, i.e. the process of diagnosing
problems; gathering, analyzing and exploring data and planning and
taking action.
(e) The use of a behavioural scientist change agent (initiator of change
beha vior) or catalyst; and
(f) A view of the change effort as an ongoing process.
Check your progress:
1. Explain the characteristics/Features of OD.
5.4 ASSUMPTIONS OF ORGANIZATIONAL DEVELOPMENT (OD) OD as a concept is based on different assumption s:-
(1) Individuals:
(a) People want to grow and mature. munotes.in

Page 68

68 Sociology of Organizations
68 (b) Employees have to offer (e.g. energy and creativity ) that is at present
not being used at work.
(c) Most employees desire the opportunity to contribute i.e. they desire,
seek and appreciate emp owerment.
(2) Groups:
Groups and teams are crucial to organization success. Group influences
individual behaviour. Group pressure moulds individual but that requires
skill.
(3) Organization:
Excessive controls, policies and rules are detrimental. Authori ties can
handle conflicts in functional way. Individual goals and organizational
goals can be merged.
Management and individual employees should work together for
betterment. There are many issues in.OD: -
(a) Employee development
(b) Manager Selection
(c) Leadership Styles
(d) Organization Structure
(e) Better Communication
(f) Interpersonal Relations
For French and Bell, OD is a long -range effort to improve and achieve
better culture of work.
Check your progress:
1. Explain the assumptions of OD.
5.5 GOALS OR OBJECTIVES OF ORGANIZATIONAL DEVELOPMENT (OD) According to French, some of the common goals of OD programmes are:
(1) To develop a self -renewing, viable system Which can be organized
in a variety of ways, depending on the tasks, that are to be
performed. munotes.in

Page 69

69 Organisational Development (OD) (2) To increase the level of trust and support among an organization’s
members.
(3) To create an environment in which authority assigned role is
augmented by authority based on knowledge and skill.
(4) To increase the openness and authencity of communication laterally,
vertically and diagonally.
(5) To increase the level of self and group responsibility in planning and
implementation.
(6) To optimize the effectiveness of both the stable and temporary
systems through which much of an organization ’s work is
accomplished by built -in and continuous improvement mechanisms.
(7) To more towards high collaboration and low competition between
interdependent units.
(8) To create conditions in which conflict is effectively managed.
(9) To reach the point wh ere decisions are taken on the basis of an
information source rather than an organizational role.
(10) To enhance the identification of members and groups with the
organization as a whole
(11) To assit managers in setting challenging but realistic goals fo r
themselves.
The typical OD programme is aimed at changing the attitudes, values and
beliefs of the employees so that they themselves can identify and
implement organizational changes.
According to Margulies and Raia, “OD technology is aimed at developing
new organizational learning and new ways of coping and dealing with
problems.” The primary aim of the OD is to improve the productivity,
morale and satisfaction of employees in an organization.
The other important objectives of OD according to Margulies a nd Raia
are:
(a) Increasing the level of trust and mutual emotional support among all
organizational members
(b) Increasing the incidence of confrontations of organizational problems
both within groups and among groups in contrast to ‘sweeping
problems u nder the rug.’
(c) Creating an environment in which the authority is based on
knowledge and skill.
(d) Increasing the openness of communication, laterally, vertically and
diagonally. munotes.in

Page 70

70 Sociology of Organizations
70 (e) Increasing the level of enthusiasm and personal satisfaction among
the employees in the organization.
(f) Finding the probable solutions to problems with greater frequency.
(g) Increasing the level of self and group responsibility in planning and
implementation .
OD is a way of looking at the whole human side of organization al life.
The emphasis of OD on human dimensions of organization is reflected in
the following main humanistic values: -
(1) To provide opportunities for people to function as human beings rather
than mere inputs in the production process.
(2) To provide opp ortunities for each organization member, as well as for
the organization itself, to develop to the full potential.
(3) Attempting to increase the effectiveness of the organization in terms
of all of its goals.
(4) To create an environment in which it is po ssible to find exciting and
challenging work.
(5) To provide opportunities for people in organizations to influence the
way in which they relate to work, the organization and the
environment.
(6) To treat each human being as a person with a varied set of n eeds, all
of which are important in his work and in his life.
Check Your Progress:
1. Explain the goals/objectives of OD.
5.6 PROCESS OF ORGANIZATIONAL DEVELOPMENT PROGRAMME The process of OD is complex and it involves the following steps: -
(a) Initial diagnosis :
The consultant meets with top management to determine the nature of the
firm’s problems, to develop the OD approaches most likely to be
successful and so to ensure the full support of top management. During
this step, the consultant may seek inputs by means of interview with
various people in the organization. munotes.in

Page 71

71 Organisational Development (OD) (b) Data Collection:
Surveys may be made to determine organizational climate and behavioural
problems.
(c) Data feedback and confrontation:
Data collected are analyzed and review ed by various work groups formed
for this purpose in order to mediate in the areas of disagreement or
confrontation of ideas or opinions and to establish priorities.
(d) Selection and design of Interventions:
The interventions are the planned activities t hat are introduced into the
system to accomplish desired changes and improvements. At this stage,
the suitable interventions are to be selected and designed.
(e) Implementation of Intervention:
The selected intervention should be implemented. Intervention may take
the form of workshops, feedback of data to the participants, group
discussions, written exercises, on -the —job activities, redesign of control
system etc. Interventions are to be implemented steadily as the process is
not a “one -short, quick cure ” for organizational malady. But it achieves
real and lasting changes in the attitudes and behaviour of employees.
(f) Action planning and problem solving:
Groups prepare recommendations and specific action planning to solve the
specific and identified pr oblems by using data collected.
(g) Team building:
The consultants encourage the employees throughout the process to form
into groups and teams by explaining the advantages of the teams in the
OD process, by arranging joint meetings with the managers, sub ordinates
etc.
(h) Intergroup Development:
The consultants encourage the intergroup meetings, interaction etc. after
the formation of groups/teams.
(i) Evaluation and Follow -up:
The organization evaluates the OD programmes, find out their utility,
develo p the programmes further for correcting the deviations and/or
improved results. The consultants help the organization in this respect.
All the steps in the OD processes should be followed by the organization
in order to derive full range of OD benefits.
munotes.in

Page 72

72 Sociology of Organizations
72 Check Your Progress:
1. Explain the process of OD programme.
5.7 ORGANIZATIONAL DEVELOPMENT INTERVENTION TECHNIQUES (1) Sensitivity training:
Sensitivity laboratory or T group training is the oldest technique,
Sensitivity training’s basic aim is to increase the participant’s insight into
his or her own behaviour and the behaviour of others by encouraging an
open expression of feelings in the trainer -guided T group (t stands for
trainee). Emotions are freely discussed. The participants (usually 15) t ell
one another how their behavior is perceived. They focus on present
behavior. A climate of ‘psychological security’ is therefore necessary if
participants are to feel safe enough to expose their feelings, to drop their
defenses and to try out new ways o f interacting.
(2) Team building:
A group’s performance is observed and then shared with the members.
Each member examines, explains and analyzes the data. The team as a
whole develops specific action plans or solutions for solving the team’s
problems.
Each member thinks and suggests improved ways of doing. The members
also discuss about the obstacles in the way of improvement. The leader
also finds the level of willingness of each member and programmes
accordingly. The group then explores and discusses th e issues, examines
and begins working on some solutions.
(3) Survey research:
Another human OD technique requires that employees should fill attitude
surveys. These surveys indicate the attitude to work. The data are then
used as feed back to the work gro ups as a basis for problems analysis and
action planning. Management also becomes active and aware of the
problems the organization has and also thatthere is need to solve them.
Such survey research helps the employees to know themselves and also
the manag ement to reach better solutions.


munotes.in

Page 73

73 Organisational Development (OD) (4) Techno - Structural technique:
Apart from human beings, theitechnology of the production also has to be
improved. The focus is on productivity improvement and efficiency. The
structure is redesigned and the new one i s implemented.
(5) Managerial grid:
The managerial grid identifies a range of management behaviour based on
the different ways that how production/service oriented and employee -
oriented states interact with each other. Managerial grid is also called as
instrumental laboratory training as it is a structured version of laboratory
training. It consists of individual and group exercises with a view to
developing awareness of individual managerial style, interpersonal
competence and group effectiveness. Thus, g rid training is directly related
to the leadership styles. The managerial grid foCuses on the observations
of behaviour in exercises specifically related to work. Participants in this
training are encouraged and helped to appraise their own managerial styl e.
Check your progress:
1. Discuss the OD intervention techniques.
5.8 BENEFITS AND LIMITATIONS OF ORGANIZATIONAL DEVELOPMENT (OD) The chief advantage of OD is that it tries to deal with changes in a whole
organization or a major unit of it. In t his manner, it accomplishes more
widely dispersed improvement: other benefits include improved
motivation, productivity, quality of work, job satisfaction, teamwork and
resolution of conflict. There also are reduced negative forces such as
absenteeism and turnover.
General Motors (GM) used OD to improve the effectiveness of its
management system.
At GM’s Oldsmobile division, the OD program reduced absenteeism and
turnover, the Chevrolet group improved employee job, satisfaction; and
the Buick division, usin g a job enrichment program, increased
productivity, reduced petty grievance, improved departmental morale, and
facilitated better interpersonal relationships.
OD is not restricted to business but is widely practiced in the military, as
an autocratic, mecha nistic organization with values apparently
incompatible with OD technologies. The U.S. army tried a number of new
managerial approaches, including OD, which the army named munotes.in

Page 74

74 Sociology of Organizations
74 ‘Organizational Effectiveness” (0E). Among the techniques employed
were team buildin g, goal setting and developmental efforts based on
surveys. These decentralized and flexible OE efforts had the strong
support of top management, which may have been an important factor and
the effectiveness of the programs perceived by respondents in a st udy.
As with any complex program, OD has problems and limitations. It is time
consuming and expensive. Some benefits have a delayed payoff period,
and an organization may not be able to wait that long for potential
benefits. Even when a professionally capa ble consultant is used, on OD
program may fall flat. There are charges that participants are sometimes
coerced toward group attitudes and conformity. There are other charges
that excessive emphasis is given to behavioural processes rather than to
job perfo rmance. Group processes seem Lobe given priority over needs of
the organization.
A notable limitation of OD is that it may be more compatible with the
humanistic values in the United States and Scandinavian countries than
with the dominant values in Japan, Latin American and Africa.
In Sum, the main benefits and limitations of OD are as follows: Benefits
of OD:
(a) Change throughout organization
(b) Greater motivation
(c) Increased productivity
(d) Better quality of work
(e) Higher job satisfaction
(f) Improved teamwork
(g) Better resolution of conflict
(h) Commitment to objectives
(i) Increased willingness to change
(j) Reduced absenteeism
(k) Lower turnover
(I) Creation of learning individuals and groups
Limitations of OD:
(1) Major time requirements
(2) Substantial expenses
(3) Delayed payoff period
(4) Possible failure munotes.in

Page 75

75 Organisational Development (OD) (5) Possible invasion of privacy
(6) Possible psychological harm
(7) Potential Conformity
(8) Emphasis on group processes rather than performance
(9) Possible conceptual ambiguity
(10) Difficulty in evaluation
(11) Cultural incompatibility
Check your Progress:
1. Explain the benefits and limitations of OD.
5.9 INTRODUCTION, MEANING AND DEFINITIONS OF ORGANIZATIONAL CHANGE Change is the law of nature. It is a necessary way of life in most
organizations for their survival and growth. Though there may be some
discontentment, during the early days of the change, persons learn to meet
the change and adapt themselves to the changing situations, hence,
resistance the change would be a sh ort-term phenomenon.
Man has to mould himself continuously to meet new demands and face
new situations. Despite the fact that change is a persistent phenomenon, it
is a common experience that people resist change, whether in the context
of their pattern of life or in the context of their work situation in an
organization.
The term ‘Organizational change’ implies the creation of imbalances in
the existanct pattern or situation. Adjustment among people, technology
and structured set up is established when an organization operates for a
long time. People adjust with their jobs, working conditions, colleagues,
superiors etc. Similarly, an organization establishes relationship in the
external environment. Change requires individuals and organizations to
make new adjustments. Complexity and fear of adjustment give rise to
resistance and problem of change. Human resource is an important factor
in the adjustments among individuals as well as between the organization
and environment, as an organization is mostly compo sed of people.
Individual members can resist either individually or in group.
Change could be both reactive and proactive. A proactive change has
necessarily to be planned to attempt to prepare for anticipated future munotes.in

Page 76

76 Sociology of Organizations
76 challenges. A reactive change may be an automatic response or a planned
response to change taking place in the environment.
Check your progress: -
1. Explain the meaning of organizational change.
5.10 TYPES OF CHANGES Changes can be broadly divided into: -
(a) Work change
(b) Organizatio nal change
(c) Work Change:
It includes changes in machinery, working hours, methods of work, job
enlargement or re -engineering. Change may also be in the working hours
like morning shifts, evening shifts, operation of the organization on
Sundays/ Holiday s.
(d) Organizational Change:
Changes relating to organization include change in employees due to
transfers, promotion, retrenchment, lay -off, restructuring organization,
introduction of new products or services, imposition of regulation,
changes in organ izational goals or objectives etc.
Check your progress: -
1. Explain the types of change.
5.11 REASONS FOR CHANGE Changes in organization are a must whether brought about deliberately or
unwillingly. The reasons for change are categorized as follow s:- Changes
in business conditions, changes in managerial personnel, deficiency in
existing organizational patterns, technological and psychological reasons,
government policy, size of the organization etc. munotes.in

Page 77

77 Organisational Development (OD) Check your progress:
1. Examine the reasons for change.
5.12 RESPONSE TO CHANGE Work change does not produce direct adjustment. Instead it operates
through each employee’s attitude to produce a response that is conditioned
by feelings toward the change. People often show this attachment to the
group by receiving it in some uniform response to the change, though they
individually interpret the change differently. This response makes possible
some illogical action like mass walk -outs when obviously only a few
people actually want to. A group devel ops response in response to its
member’s conflicting attitudes towards change. Therefore, each pressure
encourages counter pressure within the group. The net result is a self -
correction mechanism to restore balance wherever change threatens. Thus,
people a ct to establish a steady state of need fulfillment and to protect
themselves from disturbances of that balance.
Every change is likely to have some cost as well as bring additional
benefits to the organizations. Organizations introduce change when the
bene fits (additional benefits derived due to change) are relatively more
than the cost (additional cost incurred due to change.) Cost and benefits
are not only economic but also social, psychological, environmental etc.
Check your progress: -
1. Write a brief n ote on response to change.
5.13 RESISTANCE TO CHANGE The basic problem in the management.to change is the study of causes of
resistance to change. Despite the fact that change is a persistent
phenomenon, it is a common experience that employees re sist change
whether in the context of their pattern of life or in the context of their
situation in the organization. The best example is resistance of employees
to computerization. Change of and type requires readjustment. ‘Man
always fears the unknown, a nd a change represents the unknown.’ munotes.in

Page 78

78 Sociology of Organizations
78 Reasons for resistance: - Some of the important reasons for resistance to
change are as follows:
(1) Economic reasons: - Economic reasons for resistance are classified
into three groups. They are: -
(a) Fear of reduction i n employment: Due to change in technology,
methods of work, quantity or quality of work etc. This fear leads to
resistance to change on the part of people. Opposition to automation is
an example to it.
(b) Fear to demotion: Employees may fear that they may be demoted if
they do not possess the new skills required for their jobs, after the
introduction of change. Hence, they prefer ‘status quo.’
(C) Fear of workload: Change in work technology and methods may lead
to the fear that workload will be increased w hile there will not be any
corresponding increase in their salaries and benefits. This feeling
creates resistance to change.
(2) Personal reasons: Personal reasons for resistance are also divided into
three classes:
(a) Need for training: - If change in te chnology and work organization
necessitates training and re -learning on the part of employees, it may
lead to resistance, as all do not like to go for refresher and retraining
courses off and on.
(b) Boredom and Monotony: If the proposed change is expected to lead
to greater specialization resulting in boredom and Monotony, it may
also be resisted by employees.
(c) No participation in change: Some employees resist any change as
they are critical of the situation and they are not being given any part
in deci sion-making process for change. When they do not understand
fully the implications of change, they resist it.
(3) Social Reasons: Social reasons for resistance are also classified into
three groups. They are: -
(a) Need for new social adjustment : An organiz ational change requires
new social adjustment with the group, work situation and new boss
etc. All individuals are not ready to accept this challenge. Some
people refuse transfers and promotions for this reason only, as they
will have to break their presen t social ties.
(b) Taking change as imposed from outside: Some employees take any
change as imposed from outside upon them.
(c) Other considerations: Some employees may consider that every
change brought about is for the benefit of the organization only an d
not for them, their fellow workers or even the general public. Hence,
they resist the change. munotes.in

Page 79

79 Organisational Development (OD) Resistance from the side of Managers:
It is not a common fact that change is always resisted by the employees
only. Managers, also resist change sometimes. Any change sets in new
tension, stress and strains over them is normally resisted by managers. The
feeling of uncertainty, whether they will be able to handle new
circumstances successfully or not, motivates them to resist.
Check your Progress: -
1. Describe t he reasons for resistance to change.
5.14 APPROACHES TO ORGANIZATIONAL CHANGE Management has to take the following steps to implement the change
successfully:
(1) Participation of employees:
Before introducing any change, the employees should be fully consulted
and they must be made a party to any such decision. The meaning and
purpose of the change must be fully communicated to those who will be
affected by it. Enough time should be allowed for discussion, and pros and
cons of the change should b e explained, in detail, to employees.
(2) Planning for change:
Before implementing any change, the management should plan for it.
Employees should get an opportunity to participate both in planning the
change and installing it. This will help the group of the affected employees
to recognize the need for change and thus prepare them for receiving it
without any fear.
(3) Protecting Employee’s Interests:
Management should ensure that employees are protected from economic
loss, loss in status or personal dig nity. If those things are protected, the
degree of resistance to change will be at the lowest ebb.
(4) Group Dynamics:
Group dynamics refers to ever changing interactions and adjustments in
the mutual perceptions and relationships among members of the gro ups.
Such group interactions are the most powerful instruments which facilitate
or inhibit adaptation to change. Adaption is a team activity, which requires
conformity to the new group norms, moves, traditions and work patterns, munotes.in

Page 80

80 Sociology of Organizations
80 If these cou ld be positivel y articulated by management, the results are
likely to be more successful and durable.
(5) Cautions and slow introduction:
The management should not introduce any change suddenly and abruptly.
It must be an objective for the management to build in the org anization an
awareness of change and an ability to forecast it, and also to construct an
attitude of welcoming change. Change must be introduced in sequential
parts, if possible, the results must be reviewed, and required adjustments
must be made in it.
(6) Positive Motion :
The management should use the policy of positive motivation to
counteract negative resistance. It should be the attempt of the management
to make the job easier and less exerting. The management should impart
proper training to its emp loyees in new technique and work knowledge
etc. The leadership styles should also be supportive and human oriented.
This policy will also bring down the resistance to change.
(7) Sharing the benefits of change:
Any change whether technical, social or econ omic will be least resisted by
the employees if the management permits the employees to share benefits
which arise out of the change. So, the management must see that
employees are not only assured of it, they are given due advantage of it as
well.
(8) Training and development:
Management should plan for change. Based on the change plan, the job
should be redesigned. Management should train the employees before -
hand and prepare the employees to invite change. Normally, trained and
developed employees will not resist change as they can not keep quiet
with enriched skill and knowledge.
(9) Career Planning and development:
Organization on the basis of change plans and redesigned jobs should plan
for careers of employees, possibilities to move the employees to the higher
levels and develop them. The developed employees for future careers
demand the management to implement change.
(10) Organization development:
OD aims at moulding and development of employees in the psychological
and behavioral areas with a vie w to achieve organizational effectiveness.
Employees with enriched behaviours welcome the change.
munotes.in

Page 81

81 Organisational Development (OD) Check your Progress:
1. Explain the approaches to organizational change.
5.15 PRINCIPLES OF CHANGE Management should follow the under mentipnea principles of change: -
(a) Understanding the change itself, its purpose, its benefits and then
making them understand to the employees
(b) Estimating the reasons for the possible resistance to change and
preparing to allay their fears
(c) Mindful of channels of authori ty.
(d) Preparedness for all the questions and criticism.
(e) Listening to the suggestions and criticism of employees and
incorporating them in the scheme as far as possible.
(f) Creating interest in them, convincing them and preparing them.
(g) Keeping in touch with the process of change.
5.16 PLANNING AND IMPLEMENTING CHANGE Management is often called a change agent, as its role is to initiate the
change and help make it work successfully. Employees support is most
essential in implementing the change suc cessfully as they are at the helm
of affairs, though the management is an agent of change. Implementation
is the institutionalization and internalization of change after it has been
accepted by an organization and a decision has been taken to accept and
make it part of the on -going activity. Institutionalization is making the
change permanent part of organization and internalization means
stabilization of the change. The implementation process should start with
planning. The three important stages of implem entation of change process
are:-
(a) Monitoring the change.
(b) Taking action in relation to the change
(c) Making necessary adjustments in the programme accepted for
Implementation .
munotes.in

Page 82

82 Sociology of Organizations
82 Planning:
The main objective of planning is to have an overall understan ding of the
nature of implementation. Planning process refers to determining in
advance the entire process of implementation of change phasing. Planning
may be focused on phasing, Phasing may be either temporal (in terms of
time) or spatial (in terms of va rious units or the locations of the
organization).
Processes:
Various processes involved in implementation should be decided in
advance. Various stages of the process include initiation, motivation,
diagnosis, information collection, deliberation , acti on proposal,
implementation and stabilization. Attention should be paid to the process
of collaboration, increasing the capability of the organization to face the
problems of change, establishing the norms and values.
Strategies:
Man agement should formul ate various strategies for implementation.
These strategies should focus on taking outsider’s help, change agent,
designing permanent organizational structures, unit/location of the
organization to be selected for initial process, openness with the
environ ment etc.
Monitoring:
It is the process of “routine periodic measurement of programme inputs,
activities and outputs undertaken during programme implementation.
Monitoring is normally concerned with the procurement, delivery and
utilization of programme r esources, adherence to work schedules or
progress made in the production of outputs. Monitoring is essential to
make implementation effective.
Implementation team:
A broad based task group of implementation should be set -up to look after
the implementatio n of the change programme and monitor such
programme. HRD department of the organization may be asked to take up
this responsibility.
Minimum Control:
Controls should be minimum in order to make the monitoring effective,
On the one hand, it is a control f unction and on the other it also attempts to
develop new norms of creativity, diversity and experimentation.
Review and feedback:
Implementation requires reviewing various process and provide feedback.
It involves getting data, information and experiences and providing
feedback to the people on how they are implementing compared to the
design and plans. munotes.in

Page 83

83 Organisational Development (OD) Dissemination of Information:
The data, information, experiences collected in the various units/
processes of the organization may be provided to all the parties of change
implementation with a view to reinforce a sense of success amongst
various people.
Action:
Action covers all the minute details of what is to be implemented at
different stages. This process involves various phases and steps for people
and various group tasks in relation to change programme.
Adaptation:
Adaptation is the combination of two main criteria of effectiveness of
implementation. Adaptation may be both general in the sense that some
modifications may be made in the original pla n and some may be
developed at later stage.
Support:
Various types of support from all concerned will be required for the
implementation of change.
Main agencies which render the necessary support are:
Human resource development:
Effective implementatio n of change requires new and varied technical,
managerial and behavioral skills and knowledge. Human Resource
Development can contribute for the enhancement of these skills through
training, executive development and organization development
programmes.
Resources:
Implementation requires support in the form of various fields like
financial, human resources, technological etc.
Linkages:
Support may also be required in terms of building linkages both with
external experts, various external agencies and inte rnal departments.
Linkage among departments, implementation teams, line management and
top management is essential.
To management Commitment:
The most important aspect of support essential for implementing change is
the support and commitment of top manag ement. Top management should
involve itself in the process of change implementation, encourage the
implementation team, provide all types of resources. munotes.in

Page 84

84 Sociology of Organizations
84 Management has to get the support from employees through the following
means: -
(a) Encouraging and using group force.
(b) Development of leadership for change.
(c) Encouraging participation and sharing views
(d) Maintenance of Employee’s security.
(e) Effective communication.
(f) Participation and working with the unions
(g) Working with the total system of the organization which requires
adopting useful and necessary changes.
(h) Changing by evolution but not by revolution.
(i) Adopting the change with adequate attention to human relations.
(j) Identifying and taking care of post change problems.
Check your progress:
1. Write a brief note on planning and implementing change.
5.17 SUMMARY OD is a comprehensive behavioural science based approach, aimed at
improving the effectiveness of an organization through systematic and
behavioral patterns of an o rganization. It is planned intervention of
developing organizational culture and organizational ethos. It is concerned
with the planning and implementation of programmes designed to improve
the effectiveness with which an organization functions and respond s to
change.
Change is necessary for sustained growth and development of any
organization. People have to develop their skills and knowledge to adjust
with new technology. In today’s time, adjustment to global demands and
production is absolutely necessary to survive.
5.18 GLOSSARY (1) Organization: -A process of gathering resources to achieve final
objectives. munotes.in

Page 85

85 Organisational Development (OD) (2) Organizational Change: - A process of adjustment to emerging needs.
(3) Organizational development: an effective process of change or final
outcom e of change in the process of organization.
(4) Change Agent: - Outside or inside intervention.
(5) Sensitivity training: - Learning to be more alert towards other’s
behaviour.
(6) Team building: - Sharing experiences with others in the team.
(7) Survey rese arch: - Using research findings or observations in making
adjustment.
5.19 QUESTION S Q.1 Define organizational Development (OD).Explain its Characteristics
and assumptions.
Q.2 Explain the OD intervention techniques .
Q.3 Discuss the goals/objectives o f OD.
Q.4 Explain the benefits and limitations of OD
Q.5 What do you mean by Organizational Change? Explain the reasons
for resistance to change.
Q.6 Write a brief note on planning and implementing change.
5.20 SUGGESTED READINGS  P.Subba Rao — Essen tials of Human Resource Management and
Industrial Relations.
 Gary Dessler — Human Resource Management
 Mamoria and Gankar - Personnel Management
 Stephen p. Robbins — Organizational Behavior



*****
munotes.in

Page 86

86 6
TRAINING, LEARNING AND
DEVELOPMENT
Unit Structure
6.0 Objectives
6.1 Introduction
6.2 Meaning and Definitions of Training
6.3 Need/objectives/purposes of Training
6.4 Principles of Training
6.5 Areas of Training
6.6 Importance/Advantages/Benefits of Trai ning
6.7 Types of Training
6.8 Methods of Training
6.9 Evaluation of Training programme
6.10 Effectiveness of Training Programme
6.11 Training and Development
6.12 Need and Importance of Ma nagement/Managerial Development
6.13 Benefits of Managerial De velopment Programmes
6.14 Methods of Management/Managerial Development
6.15 Meaning and Definitions of Learning
6.16 Principles of Learning
6.17 Characteristics of Learning Process
6.18 Learning Problems
6.19 Summary
6.20 Glossary
6.21 Question
6.22 Suggested Readings
6.0 OBJECTIVES  To enable the students understand the meanings of the concepts:
Training, Learning and development.
 To acquaint the students with the principles, need, benefits, areas,
types, and methods of training.
 To familiarize students with principles and characteristics of learning
process and also the need, methods and benefits of management
Development.
munotes.in

Page 87

87 Training, Learning and Development 6.1 INTRODUCTION Every organization needs to have well -trained and experienced people to
perform the activities that have t o be done. If the current or potential job
occupant can meet this requirement, training is not important. But when
this is not the case, it is necessary to raise the skill levels and increase the
versatility and adaptability of employees. Inadequate job pe rformance or a
decline in productivity or changes resulting out of job redes igning or a
technological break through require some type of training and
development efforts. As the job becomes more complex, the importance of
employee development also increase s. In a rapidly changing society,
employee training and development are not only an activity that is
desirable but also an activity that an organization must commit resources
to if it has to maintain a viable and knowledgeable work force.
Training is based on learning process. Training causes learning, a process
that takes place within the trainee, in which behavioural changes occur as
a result of experience.
6.2 MEANING AND DEFINITIONS OF TRAINING Training is one of the important aspects of manpower develo pment. It has
gained significance since 1960s and continues to be of growing
importance for organizations today.
Training is normally viewed as a short term educational process utilizing a
planned, systematic and organized procedure by which non-managerial
personnel acquire the technical knowledge and skills necessary for
increased effectiveness in achieving organizational goals.
In simple words, training is a process of developing or imparting skills,
knowledge and changing attitudes so as to increase indi vidual and
organizational effectiveness.
Training is a process of learning a sequence of programmed behaviour. It
is an application of knowledge. It gives people an awareness of the rules
and procedures to guide their behaviour. It attempts to improve thei r
performance on the current job or prepare them for some future job.
Training improves, changes, moulds the employee’s knowledge, skill,
behaviour, aptitude and attitude towards the requirements of the job and
organization. Training refers to the teaching and learning activities carried
on for the primary purpose of helping members of an organization, to
acquire and apply the knowledge, skills, abilities and attitudes needed by a
particular job and organization.
Thus training bridges the differences betwee n job requirements and
employee’s present specifications.
Training may be defined as any organizationally planned effort to change
the behaviour or attitude of employees so that they can perform jobs on
acceptable standards. Training provides knowledge and skills required to
perform the job. munotes.in

Page 88

88 Sociology of Organizations
88 Training is the watchword of present dynamic business world. The
industrial/management training is practical in nature. It relates to
knowledge, information, technical skills, social skills, administrative skills
and at titude building.
Training implies providing knowledge in advance, improving employee
performance by increasing employee’s ability to perform through learning,
and imparting specific skills, abilities and knowledge to employees.
Training is for developing o verall efficiency of an industrial unit.
Expenditure on training is an investment for manpower development and
gives rich dividend in the long run. Training is an opportunity given to an
employee to learn, grow and develop for jobs at higher levels. It is an
opportunity for and self -improvement and development. Training of
employees is the responsibility of the management. It has to incur
expenditure and create necessary infrastructure for employee training.
“Born managers are good, but trained managers are better.”
Definitions of Training:
According to Edwin Flippo , training is “the act of increasing the
knowledge and skill of an employee for doing a particular job.”
Dale. S. Beach define the training as “the organized procedure by which
people learn knowl edge and for skill for a definite purpose.”
In the works of Wayne Cascio, “Training consists of planned programs
undertaken to improve employee knowledge, skills, attitudes and social
behaviour so that the performance of the organization improves
considera bly.”
Check Your Progress:
1. Explain the meaning of Training Define the term Training.
6.3 NEED/OBJECTIVES/PURPOSE OF TRAINING (1) To raise efficiency and productivity of employees and the
organization as a whole.
(2) To create a pool of well -trained capable and loyal employees
(3) To provide opportunities of growth and self -development
(4) To avoid accidents and wastages of all kinds.
(5) To meet the challenges posed by new development in the field of
science and Technology. munotes.in

Page 89

89 Training, Learning and Development (6) To improve the q uality of production.
(7) To develop cordial labor -management relations and thereby to
improve the Organizational environment.
(8) To develop positive attitude and behavior pattern.
(9) To prevent manpower obsolescence in an organization. (1 0)
To develo p personal qualities among employees.
(11) To bridge the ever increasing gap between planning and
implementation of projects.
(12) To facilitates exchange of views and ideas between superiors and
subordinates.
(13) To create reserve managerial force to fac e’ the problems of
absenteeism, labor turnover etc.
Check your Progress: -
1. Explain the need/objectives/purposes of Training.
6.4 PRINCIPLES OF TRAINING Certain general principles need to be considered while organizing a
training programme for Ex ample: -
(1) Trainees in work organizations tend to be most responsive to training
programmes when they feel the need to learn, i.e. the trainee will be
more eager to undergo training if training promises answers to
problem or needs he has as an employee
(2) Learning is more effective where there is reinforcement in the form of
rewards and punishments i.e. , individuals do things that give pleasure
and avoid things that give pain.
(3) In the long run, awards tend to be more effective for changing
behaviour a nd increasing one’s learning than punishments.
(4) Rewards for the application of learned behavior are most useful when
they quickly follow the desired performance.
(5) The larger the reward for good performance following the
implementation of learned beha viour, the greater will be the
reinforcement of the new behaviour.. munotes.in

Page 90

90 Sociology of Organizations
90 (6) Negative reinforcement, through application of penalties and heavy
criticism following inadequate performance, may have a disruptive
effect upon the learning experience of the trainee than positive
reinforcement.
(7) Training that requests the trainee to make changes in his values,
attitudes and social beliefs, usually achieves better results if the
trainee is encouraged to participate, discuss and discover new,
desirable behaviour norm s.
(8) The trainee should be provided with ‘feedback’ on the progress he is
making in utilizing the training he has received.
(9) The development of new behaviour norms and skills is facilitated
through practice and repetition.
(10) The training material s hould be made as meaningful as possible.
The National Industries Conference Board, U.S.A. states some other
principles like: -
(a) The purpose of training is to help meet company objectives by
providing opportunities for employees at all organizational leve ls to
acquire the requisite knowledge, skills, and attitudes.
(b) The first step in training is to determine needs and objectives.
(c) The objectives and scope of a training plan should be defined before
its development is begun in order to provide a basis of common
agreement and co -operative action.
(d) The techniques and processes of a training programme should be
related directly to the needs and objectives of an organization.
(e) Training is properlythe responsibility of any one in the management
who wa nts to attain a particular objective.
(f) The purpose behind the training of personnel is to assist line -
management in the determination of training deeds and in the
development, administration, conduct and follow -up of training plans.
(g) To be effective, training must use the tested principles of learning.
(h) Training should be conducted in the actual job environment to the
maximum possible extent.
Check Your Progress:
1. Explain the principles of Training. munotes.in

Page 91

91 Training, Learning and Development 6.5 AREAS OF TRAINING Training can be p rovided in the following areas: -
(1) Knowledge: - Training in this area aims at imparting information and
guidelines to do a job better.
(2) Attitudes: People develop attitudes towards their job and
organization. Training is imparted to develop positive att itude towards
the job and the organization.
(3) Administrative and Conceptual Skills: Training is provided to
managerial personnel to develop administrative and conceptual skills.
(4) Social/Human Skills: The employees are trained in inter -personal
skills. This helps in dealing effectively both with outsiders and
insiders. Members work as a team rather than just as mere individuals.
(5) Technical Skills: In this case, the candidate is provided with training
in practical aspects of the job such as operating or repairing a
machine, operating a computer etc.
Check Your Progress:
1. Describe the areas of training.
6.6 IMPORTANCE/ADVANTAGES/BENEFITS OF TRAINING (A) Benefits/advantages of training to Employer/Management: -
(1) Improves Efficiency: Traini ng raises the efficiency and
productivity of managers and this leads to more productions and
profit to employer.
(2) Improves Quality: Training improves the quality of production. It
also reduces the volume of spoiled work and wastages of all kinds.
This r educes the cost of production.
(3) Reduces Accidents: Training reduces accidents as trained
employees work systematically and avoid mistakes.
(4) Lesser expenditure: Training reduces expenditure on supervision as
trained employees take more interest in the work and need limited
supervision and guidance. munotes.in

Page 92

92 Sociology of Organizations
92 (5) Stable labour force: Training brings stability to labour force by
reducing labour turnover among managerial personnel.
(6) Higher morale: Training raises the morale of employees.
(7) Skilled manpower: Training created skilled and efficient manpower
i.e. team of managers.
(8) Better relations: Training moulds attitudes of employees and
develops cordial labour management relations.
(9) Reduces turnover: Training reduces absenteeism as trained
employees fin d their job interesting and remain present.
(10) New techniques: Training facilitates the introduction of new
management techniques and also new production techniques.
(11) Pool of capable employees: - Training creates a pool of trained and
capable manpower for the benefit of the organization.
(B) Benefits/ Advantages of training to Employees:
(1) Confidence : Training creates a feeling of confidence among
employees. It gives personal safely and security to them.
(2) Develops Skill: Training develops skill w hich act as valuable
personal assets of employees.
(3) Quick Promotion: Training provides opportunity for quick
promotion and self -development to managers.
(4) Monetary benefits: Training provides attractive remuneration and
other monetary benefits to empl oyees.
(5) Problem Solving: Training helps employees to make better decisions
and effective problem solving.
(6) Self-Management: Training helps an employee to handle stress,
tension, frustration and conflicts.
(7) Rewards: Trained employees are invaluable assets to the company.
They contribute towards profit maximization and in turn they get
rewards from the employers.
(8) Updates knowledge: Training develops adaptability among
employees. It up -dates their information and skills.
(9) Positive attitude: Training develops positive attitude towards work
and Creates attraction for the job and the workplace.
(10) Attitude of Co -operation: Training creates an attitude of mutual
co-operation and understanding among the managers.
munotes.in

Page 93

93 Training, Learning and Development (C) Benefits/Advantages in Human R elations:
(1) Improved Communication: Training ensures improved
communication between groups and individuals.
(2) Better orientation: Training provides orientation for new employees
and those taking new jobs through transfer or promotion.
(3) Provides inf ormation Training provides information on opportunity
in employment, governmental laws and administrative policies.
(4) Pleasant atmosphere: Training provides a good climate for learning,
growth and co -ordination. It makes the organization a better place t o
work and live.
(5) Improves Morale: Training improves interpersonal skills. it builds
up a group of employees with high morale.
Check Your Progress: -
1. Explain the benefits/advantages/importance of training.
6.7 TYPES OF TRAINING (1) Induction Training:
It refers to introduction of a person to the job and to the organization. The
main purpose of induction is to make the employee more comfortable. So
that he can easily adjust to the new environment.
Induction is provided in the following respect s:-
(a) Introduction to existing employees.
(b) A brief can be given about special achievement of the new employee
to the other employee and also of the other employees to the new
employee.
(c) Making the new employee aware of the company background histor y,
branches, products, market -share etc.
(d) Information about the company’s policies that is applicable to the new
employee.
(e) Providing on -the-job instruction, and assisting or advising in any
work related matter. munotes.in

Page 94

94 Sociology of Organizations
94 (f) Clarifying any doubts and answerin g any queries that a person may
have about the job and the organization.
(2) Job Training:
It relates to a specific job and gives information about the machines used,
production process, methods used, instructions to be followed etc. This
type of training helps to understand job and to develop skills.
(3) Training for Promotion:
Promotion involves vertical transfer of an employee, followed by a change
in authority, responsibility, status and pay. Therefore, training is required
before actually joining the new position so that the employee can
effectively and efficiently handle new tasks and challenges.
(4) Refresher Training:
The purpose is to refresh professional skill, knowledge and experience of
persons at higher executive positions. Refresher training provides
information about new developments, techniques etc. Such training is
necessary practically in all areas but is very useful for up -dating technical
and specialized knowledge.
(5) Corrective Training:
It is necessary when employees violate company rules. For example,
absence without prior sanction or smoking in a ‘No’ smoking area etc.
Here, punishment/disciplinary action cannot change the behaviour of
employee. The manager should handle the problem with treatment that
corrects the outlook of emplo yees.
Check Your Progress: -
1. Explain the various types of training.
6.8 METHODS OF TRAINING Methods of training for operative staff are as follows: -
1) Lectures:
Lectures refer to a presentation by the trainer on idea, concepts, theories
and is sues. This method concentrates on providing knowledge. It is
economical because large number of participants can be trained at one
time, saving cost in terms of man hours and money. Its major disadvantage munotes.in

Page 95

95 Training, Learning and Development is that it is difficult to know the extent of take -home learning because
participants do not show active participation.
(2) On -the-job training:
This training centers around the job. The trainee uses the machines and
tools that he will use once the training is completed. The learning takes
place in surrou ndings where he will, in future, be working. HE works with
his future supervisors and gets familiar with day -to-day operations. He can
ask his difficulties to co -workers and take guidance form them. The
supervisor also gives helping hand to him in the firs t few weeks.
On-the-job training is easy, simple and economical. IT can be used
conveniently in the case of easy and simple jobs at the lower levels.
However, this training is not scientific. Even the atmosphere in the factory
is not congenial for training purpose.
(3) Training by Supervisor:
In the training by supervisor, the training of a newly appointed worker is
treated as a specific responsibility of his immediate supervisor. This
training method is better than the on -the-job training. Here, the train ing is
more systematic and is given over a longer period.
(4) Apprenticeship Training:
In this type of training, persons are recruited as trainees and are given
elaborate theoretical training in the workshop. Demonstration for practical
knowledge, visits to industrial units for wider exposure are also arranged.
This develops skills among the trainees and they are made skilled workers
during the training period. Apprenticeship training is for a year or so and
is conducted with periodical tests and examinati ons.
(5) Audio -Visuals:
Audio -visuals include T.V. Slides, video tapes and films. Within shortest
possible time, it provides wide range of realistic examples of job
situations. The presentation can be controlled and remains equal for all
training groups. There is no flexibility of presentation and the audience
cannot raise doubts for classification.
(6) Vestibule Training: (Training at Training Centre):
Under this, training is given in a special school/workshop located in the
factory itself. The term vest ibule means a chamber or a special room
where training is imparted. This method attempts to duplicate on the job
situations for training purpose. All facilities required for training(
machines, tools, materials etc.) are available at the workshop and natur ally
the training is more systematic and elaborate. This training is costly.

munotes.in

Page 96

96 Sociology of Organizations
96 (7) Training Courses:
Companies introduce special training courses of short duration for their
employees working at lower levels. Systematic training is given during
such train ing courses. IT is given with the help of teaching aids including
audio -visuals.
(8) Job Rotation:
It refers to systematically moving employees from one job to another. It
cuts down boredom and helps an employee to learn additional skills. This
practice e nables an employee to learn additional skills. This practice
enables an employee to become a more broad -based versatile person. The
management favors job rotation because newcomers are put on the job
providing them wide exposure. Job rotation is particular ly useful to those
who are not growing as it gives them a fresh challenge and opportunity to
prove themselves. Job rotation facilitates easy transfer to different
administrative positions.
Check Your Progress: -
1. Explain the methods of training.
6.9 EVALUATION OF TRAINING PROGRAMME Training programme needs periodical evaluation in order to judge its
effectiveness and practical benefits. Such evaluation also facilitates certain
modifications in the training programme, if necessary. Evaluation of
training programme offers the following benefits/advantages: -
(a) Result -oriented: Evaluation makes training up -dated, practical and
result -oriented.
(b) Facilitates Suitable Changes: It facilitates introduction of suitable
modifications in the training prog ramme. They may relate to course
contents, duration and methods of training.
(c) All-round benefits: Expenditure on training gives good dividend to
trainees and organization.
(d) Adaptable: It makes training as per the growing and changing needs
of the org anization.
(e) Better Results: Managements gets expected results from the training
programmes.
munotes.in

Page 97

97 Training, Learning and Development Check Your Progress: -
1. Write a brief note on evaluation of training programme.
6.10 EFFECTIVENESS OF TRAINING PROGRAMME Training Programme can be tre ated as effective, if it gives the following
results: -
(a) Improvement in efficiency and Productivity: Increase in the
overall efficiency and productivity of the business unit.
(b) Improved Performance: Positive improvement in the work
performance of empl oyees after training.
(c) Reduces absenteeism and turnover: Reduction in the labour
absenteeism and turnover.
(d) Higher initiative: Employees become more cooperative and work
with more initiative and also with limited supervision.
(e) Lesser accidents: Reduction in the industrial accidents.
(f) Removal of Wastages: Elimination of wastages of resources on
materials, equipments, overtime payment etc.
(g) Sound labour relations: Better discipline among employees,
cordial labour -management relations and limite d disputes.
(h) Improved production: Improvement in the quality and quantity of
production.
Check your Progress:
1. Write a brief note on effectiveness of training programme.
6.11 TRAINING AND DEVELOPMENT Training is a process of developing or im parting skills, knowledge and
changing attitudes so as to increase individual and organizational
effectiveness. munotes.in

Page 98

98 Sociology of Organizations
98 Development is viewed as a long term educational process utilizing a
planned and systematic procedure by which managerial personnel acquire
conc eptual and theoretical knowledge for enhancing general
administrative abilities.
The major objectives of training and development programmes are: -
(a) To improve individual and organizational performance.
(b) To prepare personnel for advancement.
Training is a process of learning a sequence of programmed behaviour. It
is an application of knowledge. It gives people an awareness of the rules
and procedures to guide their behaviour. IT attempts to improve their
performance on the current job or prepare them f or some future job.
Development is a related process. It covers not only those activities which
improve job performance but also those which bring about growth of the
personality, help individuals in the progress towards maturity and
actualization of their potential capacities. By this, they become not only
good employees but better men and women. In organizational terms, it is
intended to equip persons to earn promotion and hold greater
responsibility.
Training a person for a bigger and higher job is devel opment. And this
may well include not only imparting specific skills and knowledge but
also inculcating certain desirable mental attitudes and habits.
Training is a short -term process utilizing a systematic and organized
procedure by which non -managerial p ersonnel learns technical knowledge
and skills for a definite purpose.....Development is a long -term educational
process utilizing a systematic and organized procedure by which
managerial personnel learn conceptual and theoretical knowledge for
general pur pose.
Training refers only to instruction in technical and mechanical operations,
while development refers to philosophical and theoretical educational
concepts. Training is designed for non -managers, while development
involves managerial personnel.
In the words of Campbell, “Training courses are typically designed for a
short term, clear -cut purpose, such as the operation of machinery, while
development involves a broader education for long -term purpose.”
Training and development differ in 4 ways: -
(a) ‘What’ is learned
(b) Who’ is learning
(c) ‘Why’ such learning takes place
(d) ‘When’ learning occurs munotes.in

Page 99

99 Training, Learning and Development The difference may be stated thus: - Learning Dimensions Training Development Who? Non-Managerial Personnel Managerial -Personnel What? Technical &Mechanical Operations Theoretical, Conceptual Ideas Why? Specific job-related purpose General Knowledge When? Short-term Long- term
Distinction between Training and Development :
Training is imparting education, knowledge and guidance so as to develop
‘job skills among the operative staff. Development is providing wider
exposure to managerial personnel and make them capable to face
organizational problems boldly.
Training relates to specific job and is fora short period. Development is
general in nature but wide in scope. It is a long term process for updating
the knowledge and skills of executives.
Training places more emphasis on on -the-job methods. Development
places more emphasis on off -the —job methods.
Training is not costly due to the use of internal methods and short
duration. Management development is expensive due to the use of off-the -
job methods and continuity in the training activity.
Training is imparted mostly by the supervisors. Development is
undertaken by superiors, outside experts and self.
Training is given initially and afterwards when transfer is made/
promotion is given and when new technology is introduced. Management
development is a continuous activity. It is for refreshing knowledge and
skills of executives/officers.
Training places emphasis on the practical/technical aspects of the work
assigned. Development places emphasis on conceptual and theoretical
aspects and also on new developments in the management aspects of
business.
Check your Progress:
1. Explain the difference between t raining and development:
munotes.in

Page 100

100 Sociology of Organizations
100
6.12 NEED AND IMPORTANCE OF MANAGEMENT/ MANAGERIAL DEVELOPMENT (a) Talented and matured managers are not easily available. It is not
possible to appoint managers from outside for the key managerial
posts. The better alte rnative is to select talented persons as trainee
managers and develop their qualities through special training and
wider exposures.
(b) The jobs of managers are now complicated and more challenging.
They need varied skills for dealing with the complex orga nizational
problems. For this, talented persons should be selected and proper
training should be given to them.
(c) Many managers are not fully acquainted with new developments such
as computer applications and information technology. Managers
should be gi ven proper training and exposure in such developments.
(d) Executive obsolescence occurs due to mental deterioration and ageing
process. This can be corrected by offering self -development
opportunities to managers.
Check Your Progress: -
1. Discuss the Need and Importance of Management / Managerial
Development.
6.13 BENEFITS OF MANAGERIAL DEVELOPMENT PROGRAMMES (MDPS) (1) MDPS provide considerable intellectual stimulation.
(2) MDPS keep the executives will -informed with latest developments in
the fi eld of business and technology.
(3) Expenditure on managerial training is continuously rising.
Check Your Progress:
1. Explain the benefits of Managerial Development Programmes (M DPS) munotes.in

Page 101

101 Training, Learning and Development 6.14 METHODS OF MANAGEMENT/MANAGERIAL DEVELOPMENT (1) On-the-Job Methods: The methods used are available within the
organization itself. Such as (a) Coaching and counselling; (b)
understudy assignment; (c) Job rotation; (d) Delegation; (e)
Appointment as ‘Assistant to’;(f) Membership of Committees, (g)
Project assignm ent,(h) Promotions and transfers.
(2) Off-the-Job Methods: The methods used are outside the
organization. For example, (a) University and Colleges; (b)
Management institutions; (c) Role playing; (d) case study; (e)
Conferences and Seminars; (f) Simulation; (g) Management! Business
gams; (h)TV and video instructions.
Check Your Progress: -
1. Explain the methods of Management/Managerial Development.
6.15 MEANING AND DEFINITIONS OF LEARNING Learning is an important process that is intimately related t o training and
development.
Learning can be defined as relatively permanent change in behaviour as a
result of experience and practice.
Learning has been defined by cognitive psychologists as the process of
encoding, retaining and using information. It is due to this perception of
learning, Howell and Cooke has characterized individuals as “Human
Information Processors.”
According to Anderson. “ Learning is a process of skill acquisitions.”
Training is an organized procedure by which people gain knowledge a nd
acquire the skills they need for a definite purpose, “Training is what is
done to the trainee.” This training is based on learning process and
“learning is that human process by which skills, knowledge, habits and
attitudes are acquired and utilized in such away that behaviour is
modified.”
In other words. training causes learning, a process that takes place within
the trainee, in which behavioral changes occur as a result of experience.
Learning can not be measured directly but the changes in behavior t hat
occur as a result of experience can be measured. munotes.in

Page 102

102 Sociology of Organizations
102 There exists a number of theories and concepts that describe learning.
These may be divided into 2 major schools: - the connectionist and the
cognitist. The connectionist theory believes that when the lea rner likes the
situation, he repeats the action. Therefore, incentives or positive response
stimulates the desire to learn more and more.
While the cognitist believes that each learner has a goal in his mind and
while learning he tries to achieve his goal. The trainer must consider this
goal of the learner so that he can establish the relationship between
stimuli, responses and the individual goals.
Check your Progress: -
1. Explain the Meaning of Learning.
6.16 PRINCIPLES OF LEARNING (1) All human beings can learn.
(2) An individual must be motivated to learn.
(3) Learning is active but not passive.
(4) Learning may acquire knowledge more rapidly with guidance.
Feedback ensures improvement in speed and accuracy of learning.
(5) Appropriate materials (like case studies, tools, problems, readings
etc.) should be provided.
(6) Time must be provided to practice learning.
(7) Learning methods should be varied. Variety of methods should be
introduced to off -set fatigue and boredom.
(8) The learner must sec ure satisfaction from learning. Education must
fulfill human needs, desires and expectations.
(9) Learners need reinforcement of correct behavior.
(10) Standards of performance should be set for the learner.
(11) Different levels of learning exit.
(12) Learning is an adjustment on the part of an individual.
(13) Individual differences play a large part in effectiveness of the
learning process. munotes.in

Page 103

103 Training, Learning and Development (14) Learning is a cumulative process.
(15) Ego involvement is widely regarded as a major factor in learning.
(16) The rate of learning decreases when complex skills are involved.
(17) Learning is closely related to attention and concentration.
(18) Learning involves long -run retention and immediate acquisition of
knowledge.
(19) Accuracy deserves generally more emphas is than speed.
(20) Learning should be relatively based.
(21) Learning should be goal — oriented.
Check Your Progress:
1. Explain the principles of Learning.
6.17 CHARACTERISTICS OF LEARNING PROCESS (a) Learning is a continuous process.
(b) Peopl e learn through their actual personal experience, simulated
experience and from other’s experience (by using the knowledge
which represents experience of others).
(c) People learn step by step from known to unknown and simple to
complex.
(d) There is a nee d for repetition in teaching to improve skill and to learn
perfectly.
(e) Practice makes a man perfect. Hence. Opportunity should be created
to use, transfer the skills, knowledge and abilities acquired through
learning. It gives satisfaction to the learne r.
(f) Conflicts in learning arises when the trainer knows or has developed
some habits which are incorrect in terms of the method being learned.
Check Your Progress: -
1. Explain the Characteristics of Learning. munotes.in

Page 104

104 Sociology of Organizations
104 6.18 LEARNING PROBLEMS The instructor sh ould have the knowledge of the possible learning
problems. He should identify the problems of trainees and take steps to
solve them. The possible learning problems are: -
(a) Lack of Knowledge, skill, aptitude and favorable attitude.
(b) Knowledge and Skill not being applied.
(c) Existence of anti -learning factors: Most operational situations contain
a number of elements which will restrict the development of learning
regardless the methods employed.
(d) Psychological problems like fear and shy.
(e) Inabilit y to transfer of learning to operational situation.
(f) Heavy dependence on repetition, demonstration and practice.
(g) Unwilling to change.
(h) Lack of interest about the knowledge of results.
(i) Absence of self -motivation.
(j) Negative attitude about in volvement and participation.
Check Your Progress: -
1. Explain the learning problems.
6.19 SUMMARY Training is an integral part of the whole management programme, with all
its many activities functionally inter -related. Training is the cornerstone of
sound management, for it makes employee more effective and productive.
Learning is that human process by which skills, knowledge, habits and
attitudes are acquired and utilized in such a way that behavior is modified.
Development is a long -term educationa l process utilizing a systematic and
organized procedure by which managerial personnel learn conceptual and
theoretical knowledge for general purpose.
Training is designed for non -managers, while development involves
managerial personnel.
munotes.in

Page 105

105 Training, Learning and Development 6.20 GLOSSARY (1) Learning: - Gaining knowledge about theoretical principles.
(2) Training : - Giving technical and mechanical knowledge.
(3) Development : - Actualization of potential capabilities.
(4) On-the-Job methods : - Methods used are available within the
organization itself.
(5) Off-the-job methods: - Methods used are outside the organization.
6.21 QUESTION Q.1 Explain the meaning of the following concepts: -(a) Training (b)
Learning (c) Development
Q.2 Explain the principles and benefits of Training.
Q.3 Explain the principles and Characteristics of Learning process.
Q.4. Write a brief note on methods of Training.
Q.5 Distinguish between Training and Development.
6.22 SUGGESTED READINGS  P. Subba Rao — Human Resource Management and Industrial
Relations
 Mamo ria and Gankar — Personnel Management
 Kale & Ahmed — Management and Human Resource Development
 A.M.Sarma — Personnel and Human Resource Management.


*****
munotes.in

Page 106

106 UNIT III
7
ORGANIZATIONAL CULTURE
DIFFERENT TYPES OF
ORGANIZATIONAL CULTURE,
MANAGING MULTI -CULTURALISM
Unit Structure
7.0 Objectives
7.1 Introduction
7.2 Different Types of Organizational Culture
7.3 Organization and Multi -culturalism
7.4 Indian Type
7.5 American Type (Type A)
7.6 Japanese Type (Type J)
7.7 Modified American Type (Type Z)
7.8 Summary
7.9 Glossary
7.10 Questions
7.11 References
7.0 OBJECTIVES  To discuss different types of organizational culture.
 To study American type of organizational culture.
 To study Japanese type of organizational culture.
7.1 INTRODUCTION Organizational culture is varied from one society to another society. The
work culture is supported by education,. progress of science and
technology. In some countries human activities are fast and in some
countries they are slow. They all depend upon human talent, skill and
environment. The developed nations like U.S.A. and Japan are able to
establish a type of work culture, developing and underdeveloped nations
are on the way of making their own organizational culture.

munotes.in

Page 107

107 Organizational Culture Different Types of Organizational Culture, Managing Multi-Culturalism 7.2 DIFFERENT TYPES OF ORGANIZATIONAL CULTURE In human resource development certain types of organizational cultures
are identified. They are as follows.
1) Mechanistic Organizational Cultu re
2) Organic Organizational Culture
3) Authoritarian Organizational Culture
4) Participative Organizational Culture
5) Work Culture
6) Corporate Culture
7) Management Systems Culture
8) Entrepreneurial Organizational Culture
9) Familial Organizational Cul ture
10) Altruistic Organizational Culture
11) National Culture and Organizational Culture
12) Subcultures and Dominant Cultures
13) Strong and Weak Culture
1) Mechanistic Organizational Culture:
Mechanic organizational culture shows values of bureaucracy and
feudalism. Guilds and markets are controlled by the governmental
authority. in that case there is more loyalty to the organization and
workers are specialized in particular art and craft. So organizations work
relatively in a stabilized way. For exampl e, the Indian caste system shows
mechanistic cultural operation. A carpenter’s son is better than his father
or grandfather in his work, similarly a barber’s son also. Specialization
continues from generation to generation.
2) Organic Organizational Cultur e:
It is different from mechanistic culture. It completely depends on team
work. There is a free flow of information, easy communication, less
burdened and flexible. It reminds us organic theory of Herbert Spencer.
Here organizational culture is alive and everyone works enthusiastically
for the common benefit. There is a widespread understanding between the
staff and everyone takes care and risks solving the problems. So it is more
beneficial to the organizations.
munotes.in

Page 108

108 Sociology of Organizations
108 3) Authoritarian Organizational Culture:
In authoritarian organization there is a rigid relationship between boss and
the workers. It is not a healthy sign of work environment. Boss orders and
all try to remain obedient and give importance to boss and work suffers. In
presence of the boss all prete nd to work and in his absence they cut jokes
on the boss and pass time. This drama goes on continuously. But
authoritarian culture is necessary in army, navy and all strictly controlled
departments. Usually in the productive units it is not good to have an
exercise of authority rather a despotic authority.
4) Participative Organizational Culture:
Participative culture is an important type of organizational culture because
workers participate and take important decisions through their leaders like
managers, owners, and union leaders. Group problem -solving leads to
better decisions. Collaboration is better than conflict. If there is any ill
feeling, conflict it can be discussed openly in various groups and can be
solved and settled amicably.
5) Work Culture:
it is an age -old saying that ‘work is worship’. Work itself represents a
culture based on prevailing beliefs, mores and values pertaining to work.
Improvement in work culture can be achieved by learning methods.
Different approaches have been developed in d ifferent organization to
create a climate conducive to work. Some of them are as follows.
 Management policies.
 Job security and healthy atmosphere for workers.
 Inter -departmental co -operation within the organization.
 Cordial and mutual relations between al l workers and higher officials.
 Sufficient use of communication systems.
 Welfare services provided by the employers.
 Facilities for training and career development.
 Compensation, recognition and reward system.
 Chance for employees to participate in decisio n-making.
 Healthy relationship between the management and the trade union.
6) Corporate Culture:
It is a modern concept. All organizations, big or small are interested in
corporate culture. Corporate culture has its own philosophy, ideology and
assumptions . Corporate culture is well planned. What type of products
should be produced? How to motivate many retail organizations in the
market? Who are the capable personnel do it? What would be the munotes.in

Page 109

109 Organizational Culture Different Types of Organizational Culture, Managing Multi-Culturalism competition and antagonism the organization may receive? Such pro blems
are solved by the corporate culture.
Corporate culture manifests itself in organizational behavio ur. How
managers and individual employees or groups behave in the context of the
organization. Culture influences behavio ur in three areas.
a) Corporate Values: Belief in what is best for the organization and
what is not good for the organization.
b) Organizational Climate: The working atmosphere of the
organization as perceived and experienced by its members. This
includes how people feel about and react to the characteristics and
quality of the corporate culture and its values.
c) Management Style: It is the way how the mangers and bosses behave
and exercise authority. They may be autocratic or democratic, tough
or easygoing, formal or informal. Such beha vior is found in IT and
Computer companies. Words such as Sir or madam are not used in
their communication. All are addressed as Mr. or Miss.
Corporate culture is interested to see that organization should make
profits, name and fame in the world. Corporat e culture is spread all over
the world. MNCs practice corporate culture all over the world.
7) Management Systems Culture:
It is an engineering approach to management. Every function of the
organization is carefully studied to apply efficient methods to so lve
organizational problems. It involves with planning, budgeting, market
research and various group studies. Appointment of personnel, arranging
professional training to newly appointed and refresher courses for
experienced workers to enhance their knowle dge. So this has become a
system and it is followed meticulously for the benefit of the organization.
This aspect is very popular in corporate organizations.
8) Entrepreheurial Organizational Culture:
Entrepreneurial Culture favors growth, development and empire building
by taking visionary and bold decisions. Entrepreneurial skill is used in
new companies or in sick units to restart.
9) Familial Organizational Culture:
A culture is commonly passing from generation to generation, from
traditional society to modern society is known as paternalistic or familial
culture, In this cultural pattern the head of the department is looked as a
father figure and accordingly respected. His decisions are taken into
consideration carefully. This sort of organizational cul ture is commonly
found in family controlled organizations and institutions and this is found
more in India.
munotes.in

Page 110

110 Sociology of Organizations
110 10) Altruistic Organizational Culture:
The altruistic organizational culture is commonly found in organizations
that have dedicated to do social goo d. Selfless devotion and work is
always appreciated and good for the organization. This will bring more
NGOs in the world.
11) National culture and Organizational culture:
National culture is reflected in employees showing strong attachment to
national val ues like secularism, celebration of national festivals,
independence Day etc. They care for their nation and work for it. They
respect their nation, languages, and religions. For example, Japanese are
more nationalist than loyal to their own traditions and customs.
Organizational culture is based on local values like local holidays,
festivals, religious faith etc. Employees nurture their own culture and
celebrate festivals, worshipping etc.
12) Subcultures and Dominant Cultures:
Each department of an organi zation has its own culture, which can be
called sub culture. Members of each department follow and nurture their
own culture. But in the organization all the departments may have one
culture, this is dominant culture. This is built by unifying’ and integra ting
the culture of all the departments of the organsiations. There may be
interrelations between the cultures of different departments, but they may
also be independent and conflict with each other.
13) Strong and Weak cultures:
Strong culture denotes emp loyee’s punctuality, quality of hard work,
initiative, and taking more responsibilities. Such employees develop a
strong culture, a character of integration. Such employees do not remain
absent and contribute maximum production. They have positive attitude s
about the organization and they are committed to the organization.
On the other hand, weak cultured employees are passing time, not hard
working, not punctual and least bothered by the production. Such culture
is not welcomed one and such employees are d angerous for the
organization. So all the time one has to observe them and take work from
them.
Check your porgress :
Q.1. Explain the various types of organizational culture.
munotes.in

Page 111

111 Organizational Culture Different Types of Organizational Culture, Managing Multi-Culturalism 7.3 ORGANIZATION AND MULTI -CULTURALISM Culture plays a significant rol e in all organizations.
Culture is highly complex, a whole which includes dynamic knowledge,
belief, art, literature, morals, law, customs and other capabilities, habits
and values acquired by an individual in a society.
Culture is the set of important und erstandings that members of a
community share in common. But it differs from organization to
organization and nation to nation.
From the beginning of 20 century multi -cultures have entered into all
organizations and have a corporate culture. Cultural manif estation
includes own culture, cross -culture, counteractive culture. In other words,
there is a strong movement in the cultural assimilation. For example, in
Arabian countries, top posts are enjoyed by Europeans; subordinate posts
are given to Asians. This makes a distinction between Europe and Asia,
but it brings two cultures work together continuously.
Organization is a broader term, it is the entire structure, whereas, various
cultures establish the working system. When we look at past 50 years of
organi zational development in India, Indian culture was totally
manifested. So Indian culture was institutionalized and glorified. But
today, we notice in various computer and information technology , Banks
and Insurance Companies etc. people work, who belongs t o different
countries. Definitely they bring their own culture to their institutions and
organizations. Today business enterprises have been spread all over the
world. Due to net -work and e -mail facilities, work has become easy and
quickly accessible to an yone and anywhere.
Multi cultures for example, Indian culture, American culture, Japanese
culture and British culture have been mixed in various big organizations.
Indian culture is traditional, fatalistic and religious, American culture has
made individua ls more independent and self conscious, Japanese culture is
more social and gives importance to collective responsibility. So even
today we can understand that Indian workers hesitate to initiate.
Americans and British are adventurous and take leadership d ue to their
educational and cultural, background and political and economic support
found in them. Japanese are more social, national, and participative,
strongly believe in group work. So they do not differentiate between their
own home work and company’s work. Thus theories are born, known as
Type A, Type J, and Type Z.
In conclusion, culture of man, whoever and wherever he belongs to,
influences on the organizational culture and in due course imbibes in the
organization. We can call it a local culture, a multi -culture etc. For
example, Mumbai Municipal Corporation compared to Infosys and IT
Parks differs in many ways. However culture is changing, organizations
are changing, things are dynamic and changes are everlasting and munotes.in

Page 112

112 Sociology of Organizations
112 progressive. Multi -culture is u seful to help social, economic and cultural
development for the betterment of the humanity.
Check your progress : -
Q.1. Explain the concept of Multi -Culturalism.
7.4 INDIAN TYPE Indian organizations, business enterprises, industries and all insti tutions
are growing fast from the last decade. Compulsory education,
empowerment of women, constitutional support for backward classes,
increasing importance of higher education, fast industrial development,
and establishment of market networks, changes in family size, marriage,
economic independence and many more factors are responsible to
preserve Indian culture in its strong place. India was ruled by British for
more than 150 years and we are highly influenced by their culture. We are
exceeding British c ulture and life style, dress and food habits, but in mind
and heart we are Indians.
India is a developing country; it is numbered in Economic Empowerment
of G groups in the world, such as, GI, G2 and G10. Indians without giving
up their own culture are alw ays eager to learn and imitate others’ culture
for betterment. As such, there is no Indian type, since Indian
organizations, whether it is a school, a college, a university and an
industry are under the strong influence and ruling of British patriarchy.
Today multi -dimensional companies have come up in different parts of
India. IT Parks are zooming in Bangalore, Chennai, Pune, Mumbai and
Delhi. All over the nation, computer technology has reached everywhere,
telephone and cell phones have been increased. Ci ties like Mumbai and
Bangalore are growing with fast moving transport communication
systems; national highways are spread all over the country. Progress in
national economy could not be possible without organizational culture.
However, like U.S.A., U.K. an d Japan, we cannot call an established
Indian Type, cannot model ourselves in the world as different type known
as ‘Indian Type’. But in the immediate future Indian organizational culture
will be nick-named ‘Indian Type’.
In conclusion, the variety of indu strial organizations at the very beginning
were caste based, influenced by the language and the state. For example,
Syndicate Bank, Canara Bank and Corporation Bank were born in
Kamataka, Indian Bank, Union Bank of India, Punjab National Bank,
Maharashtra Bank; Indian Railways have their affinity with the states and
the language people speak. So most of the workers belong to the state and
the state language. Such affinities are not vanishing in Indian democratic
culture. In other words, Indian Type is more democratized, equalized, munotes.in

Page 113

113 Organizational Culture Different Types of Organizational Culture, Managing Multi-Culturalism caste identity is diminishing, efficiency, skill and talents are increasing.
One can notice that Indian Type is correlated with Secular Type,
Socialistic Type and Pragmatic Type.
Check your progress : -
Q.1. Explain the nature of ty pical Indian organazational culture.
7.5 AMERICAN TYPE (TYPE A) It is peculiar and interesting to know that there is a Type A, J, Z etc. due to
cultural and climatic influence on workers and the entire management. We
have to study them separately to understand the meaning and features.
American Type is known as Type A. In America short term employment
is provided. Individual workers have complete freedom to take all
important decisions in the interest of the organizations. Individual worker
is respons ible for his works. There is a rapid evaluation and promotion.
There is no demotion, but only sacking at either side. Employee is not
tolerated if he is inefficient. With a day’s notice he is removed from the
job. It means more importance is given to effic iency. Emotional
attachment, observation, waste of time is not tolerated in America. If the
Person is lazy and inefficient, he is immediately sacked. They give utmost
importance to time. Time is money for them. It is well writ in their culture.
There is al ways a specialized career path. So sufficient training, education,
technological knowledge is provided to all employees. The American
society is specialized in the work system. Explicit and formalized control
is always found and realized with American ente rprises. Vague and
ambiguous qualities are not tolerated in any of the organizations, whether
it is a government, private organization, factory, industry, business
enterprise, school or college. Higher officers and supervisors do not take
any interest in t he employee’s personal life, habits and feelings. They see
the employee only as task -performer. American work culture is highly
different from other cultures of the world. Their life style is more
mechanic. More freedom is given to individuals, even to chi ldren. There
are more chances for creativity, more chances to spoil, more chances for
children to find themselves aloof, frustrated, nervous, heroic and
adventurous. The same influence is found in the work culture.
In America, the ethics of competitive, in dividualism shapes the
organizational management and operational performance. The industrial
and economic performance in America is taken as kind of game in which
each individual desires to be a winner in order to receive a reward for
successful behavio ur. This work culture is a continuation of general munotes.in

Page 114

114 Sociology of Organizations
114 cultural and family upbringing where children are encouraged to think for
themselves, and show a sense of assertion and independence.
In a glance a typical American Organization possess the following
qualitie s.
 Short term employment. Lay offs are common, lateral job mobility is
also common.
 Performance evaluation and promotion is fast.
 Career paths are specialized.
 Decisions are carried out by the individual managers.
 Policies, rules and guidelines are to be s trictly followed.
 The organization is concerned with the worker’s work, life and his
role in the organization.
Check your progress :
Q.1. Explain the nature of typical American organization (TypeA).
7.6 JAPANESE TYPE (TYPE J) In Japan lifetime em ployment is provided. There is no question of
permanent or temporary work system. There the people do the job
sincerely, honestly, with full devotion. Therefore, they were able to
reconstruct the entire nation within a short duration after devastation of
Hiroshima and Nagasaki cities in the Second World War. Workers in
Japan strongly believe in and take consensual decisions. Every work is
based on collective responsibility. Weak and slow workers are also
tolerated. Evaluation is slow and time to time promot ion is given. There is
an informal control over all employees which is implicit. Japanese are
hard working people and they believe in non -specialized career path.
Employers and bosses have holistic approach towards the workers. So
they see employee as a pe rson, as a family member, a lifetime colleague. It
is their nobility and sublimity that their social life and individual culture
influences on organizational culture.
The Japanese culture encourages individuals as a part of the team thus
encouraging interd ependence, shared concerns and mutual help. The
organization is viewed as a family to which workers frequently make life
long commitments as they see the organization as an extension of their
own families. The authority relations are often paternalistic in nature and
strong links exist between the welfare of the individuals, the corporation munotes.in

Page 115

115 Organizational Culture Different Types of Organizational Culture, Managing Multi-Culturalism and the nation. Thus the economic success of Japan is associated with the
work culture.
At glance a typical Japanese organization possess the following work
culture.
 Fairly long term and life time job opportunity.
 Rigorous evaluation and slow promotion.
 People are primarily generalists and they become familiar with all
areas of operations.
 Taking collective decision is the common norm.
 Primary reliance on implicit control . People rely heavily on trust and
goodwill.
 Organization is concerned with the whole life of the worker, business
as well as personal and social.
Check your progress :
Q.1. Explain the nature of typical Japanese organization,(TypeJ)
7.7 MODIFIED A MERICAN TYPE (TYPE Z) It is a combination of Type A and Type J. Modified American Type
suggests a long duration employment for all workers. In this type
consensual decision -making is practiced. Individual responsibility is
given, but wherever necessary oth ers help is considered. In this type slow
evaluation and time to time promotion system is adopted. The behavioral
control is explicit and implicit, formal and informal, depends on the
situation. Type Z adopts moderately specialized career path. Employers
and bosses have holistic and democratic approach at the employees. They
have humane grounds for the employees and their families.
Z type theory is suggesting that there is a feeling of co -operation and
collaboration between managers and employees. All emplo yees have a
better understanding, a greater responsibility, foresight, co -operation, co -
ordination. There is a shared sense of collective responsibility for the
success of a decision. It enhances productivity. Modified American Type
is known as Type Z is h ighly influenced by democratic, socialistic set of
life. Live and let others live philosophy has prevailed in the workers’
organizations. This is moderate, highly workable, adjustable depends upon
humanitarian ground. munotes.in

Page 116

116 Sociology of Organizations
116 Theory Z was suggested by William Ouch i in 1981. This theory draws
heavily on Japanese approach to management; it is more a combination of
the current American as well as Japanese style of managing an
organization. Basically, Ouchi’s approach to management called for:
 Consensus decision making .
 Worker participation in all phases and operations.
 Genuine concern for the overall well -being of employees.
 Life time job security.
Both American and Japanese work cultures are contrary, but successful in
their own way. Yet America developed a modified t heory known as theory
Z. The Modified American Type has differences with Japanese type in the
operating styles. Even though America accepted theory Z with certain
modifications. These specific aspects are as follows. * Long term
employment. Recycling of hu man talent through training
This will develop a sense of loyalty and dedication among workers.
 Relatively slow evaluation and promotion.
 Career paths are not highly focused - so that employees can acquire a
variety of skills through the job rotation.
 Contr ol is both explicit and implicit. Self control is encouraged.
 Decision making is consensus.
 Responsibility is not collective but is assigned to individual managers
who are then held accountable for their decisions.
 In addition to the work and performance o f workers, the organization
takes active interest in the worker’s family and social life and
provides facilities where social interaction among all members of the
organization, irrespective of rank is encouraged.
The following table helps students to under stand and compare Type A,
Type J and Type z. Variable Type A Type J Type Z Employment Short term Life time Long term Decision making Individual Consensual Consensual Responsibility Individual Collective Individual Evaluation & promotion Rapid Slow Slow Control Explicit Formal Implicit and Informal Implicit, Informal with explicit formalized munotes.in

Page 117

117 Organizational Culture Different Types of Organizational Culture, Managing Multi-Culturalism Variable Type A Type J Type Z Career paths Specialized Non-specialized Moderately specialized Concern Segmented Holistic Holistic including Family
Sources: W.G. Ouchi and A.M. Jaeger “Type Z Organizations: Stability
in the midst of Mobility”, Academy of Management Review, 3, 1978 pp.
Check your progress :
Q.1. Explain the nature of Modified American Type Z organizations.
7.8 SUMMARY Different types of organizational culture are studied necessarily to
understand about cultural behavior of workers. Multi -cultures are more
helpful to understand variety of cultural organizations. They have their
impact on their national and international organizations. T ype A, Type J
and Type Z has suggested different ideas of cultural influences on working
system in America, Japan and India.
7.9 GLOSSARY Bureaucracy and feudalism Organic Collaboration Altruistic Explicit Implicit Holistic Humane Prevail - governing establishments - natural - partnership - selflesss - open, clear - unspoken, hidden - pious - kind - exist
7.10 QUESTIONS 1. Explain different types of organizational culture.
2. Is Indian type of organizational culture democratic? is it changing?
Discuss.
3. Write short notes. munotes.in

Page 118

118 Sociology of Organizations
118 a) American Type (Type A)
b) Japanese Type (Type J)
c) Modified American Type (Type Z)
7.11 REFERENCES  Human Resource Development P.C.Tripathi
 Organizational Behavior Jit S.Chandan
 Organizational Behavior - RIS.Suri and Sanj,i v V6rnna.
 P. Subba Rao — Essentials o f Human Resource Management and
Industrial Relations.
 Mamoria and Gankar — Personnel Management.
 Stephen Robbins — Organizational Behaviour.


*****
munotes.in

Page 119

119 8
ORGANIZATIONAL CREATIVITY :
(CHARACTERISTICS, CREATIVITY,
INDUCING FACTORS )
Unit Structure
8.0 Objectives
8.1 Introduction
8.2 Process of Creativity
8.3 Characteristics of Creative Individuals
8.4 Factors that induce creativity
8.5 Summary
8.6 Questions
8.7 References
8.0 OBJECTIVES  To introduce you to the concept of Organisational Creativity
 To understand the stages and process involved in boosting creativity
in an organization
 To explore the characteristics of creative individuals
8.1 INTRODUCTION Every sector is scrambling to adapt to the quickening pace of
technological change and shifting consumer expectations, which are
threatening their relevance and capacity to offer novel solutions.
Businesses are looking both inward and outward for a way forwa rd as
startups reinvent or create new markets seemingly overnight and
expectations rise for the delivery of responsible and relevant goods and
experiences. Unlocking new modes of operation is crucial for businesses
in all sectors so they can launch cutting -edge goods and services while
continuing to be pertinent to their clients and staff.
Creativity is defined as the process through which innovative yet
situationally relevant outputs are produced. The core of creativity is the
aspect of freshness, uniquene ss, and novelty that is also contextually
suitable. There is novelty in a boss giving dictation while standing on his
head, but the behavio ur is scarcely suitable. To put it another way, to be
called creative, an act must be original and relevant to the si tuation.
Organizations must make innovative decisions in response to societal and
technical developments. To deal with the volatility of change, future
managers will need to develop particular competences, one of which is the
capacity to stimulate creativi ty in organizations. munotes.in

Page 120

120 Sociology of Organizations
120 Creativity is not required now more than ever before. In reality, the
majority of the technologies we have now were found hundreds of years
ago. However, in today’s complicated and competitive economic
environment, a corporation earns a competitive advantage if it is inventive.
8.2 PROCESS OF CREATIVITY Although describing how individuals generate creative ideas is
challenging, academics have constructed a model that illustrates the many
stages of the creative process. The model, as depicted in Fig, stipulates
that the creative process occurs in the following stages.
1. Preparation:
Creative ideas do not appear out of anywhere. Preparation is an essential
prerequisite for creativity. Preparation entails creating a clear knowledge
of what one hopes to accomplish with a creative solution.
2. Incubation:
Incubation is a process of contemplative contemplation that is frequently
carried out unconsciously. During incubation, the individual participates in
other activities while the mind th inks and works on the problem.
Incubation is effective at dissolving previously held beliefs about a
situation. It does not imply forgetting about the problem or issue; rather, it
means putting it on the back burner. The issue is still on one’s mind, but i t
is not in the forefront of his or her focus. Incubation promotes alternative
thinking by eroding rigid notions about the problem. Divergent thinking
entails reframing the problem in a novel way and developing new
approaches to the problem.
3. Insight:
Individuals have insight at some point during the incubation period. The
feeling of abruptly becoming aware of a novel concept is referred to as
insight. These bursts of desire have no set timetable; they might occur at
any time of day or night. They are al so transient and, if not documented,
can be lost rapidly. With this in mind, many people carry little voice
recorders to catch their thoughts before they are forgotten. Similarly,
authors maintain notebooks, painters have sketch pads, and lyricists keep
tape recorders on standby to catch ideas as they occur.
4. Verification:
At the insight stage, ideas emerge. Coming up with ideas is one thing;
determining if they are valuable is quite another. Assessing the
effectiveness of a concept takes careful conside ration, examination, and
experimentation. Tenacity is important at the verification stage since other
individuals sometimes fight new ideas or swiftly dismiss them as
unworkable.
Although the processes outlined above indicate that the creative process is
sequential, creative insight does not occur in this manner. Incubation, for munotes.in

Page 121

121 Organizational Creativity: (Characteristics, Creativity, Inducing Factors) example, may occur during verification. Furthermore, the process is
frequently repeated since first concepts may be unsatisfying and require
further vision. Incubation may also occ ur during the verification step.
8.3 CHARACTE RISTICS OF CREATIVE INDIVIDUALS Creative persons are thought to have different intellectual and
psychological traits than their fewer creative colleagues. Some
characteristics of creative people include:
Some characteristics of creative people include:
 A willingness to forego immediate gain in order to achieve long -term
goals
 A great deal of energy
 An irritation with the status quo
 Perseverance
 A pursuit of hobbies and specialized interests
 A belief that fanta sies and daydreaming are not a waste of time
 An inventive thinking styles
 High intellectual abilities.
8.4 FACTORS THAT INDUCE CREATIVITY An essential source of innovation in an organisation is the individual
creativity of its employees. However, merely hi ring new creative staff
members is insufficient to establish creativity as a source of organisational
efficacy and capability (Woodman et al., 1993). (Amabile, 1998).
Organizations must create their organisational structures to support
innovative processes if they want to use creativity at the organisational
level. (Dziallas and Blind, 2019). Due to these factors, it is important to
focus more on how organisations can manage creativity and to conduct
study on organisational creativity as an entity distinct from individual,
team, and collective levels of creativity. Although the idea of
organisational creativity has been researched since the late 1980s, there is
still no agreement on what it exactly means.
The following are some of the factors that contribute to creativity.
1. Creative individuals:
Individual creativity refers to the ideas or innovations by
a single employee of an organization.
munotes.in

Page 122

122 Sociology of Organizations
122 2. Organizational assistance:
Employees can improve the performance of their company by using
creativity to look f or novel technologies, procedures, techniques, or
product concepts.
3. The corporate culture:
The corporate culture plays an important role in boosting the creativity.
The leadership style, organizational culture, ethics play an important role
in boosting creativity of an organization.
4. Diversity:
The differences between teams, companies, and individuals have become
a source of competitive advantage in today’s complex business
environment. These differences can boost creativity at various levels of
analysis. Despite continued scholarly interest, there is still disagreement
regarding the connection between diversity and creativity at and across the
person, team, and organisational levels.
5. Sufficient time and resources:
It is well said that haste is a w aste. Boosting creativity or making creative
projects involves allotting sufficient time and utilizing sufficient resources
for the project to mature fully and also to utilize the full capacity of an
individual.
Conditions for Creativity :
Selecting creativ e individuals is the first step toward increasing
organizational innovation.
1. Organizational support:
Organizational support for creativity can manifest itself in a variety of
ways. Set creative goals first. For example, 3M has set a target of 35
percen t of its tataki income coming from new products produced in the
last four years. Second, the company encourages people to take chances
and is willing to accept the inevitable 9failures that come with those risks.
Corporate leaders not only allow people to make errors, but also push
them to try out ideas when failure is a real possibility. Third, some
businesses assist employees in breaking out of their shells and becoming
risk takers. Finally, corporations create jobs that are inherently
compelling. When em ployees think their job has a big influence on the
business, they are more innovative.
2. Organizational culture:
Openness to new ideas, pleasant supervision, team building, participatory
decision making, a flexible organizational structure, and similar f actors all
contribute to creative thinking.
munotes.in

Page 123

123 Organizational Creativity: (Characteristics, Creativity, Inducing Factors) 3. Diversity:
When organizations employ people from a variety of ethnic and cultural
backgrounds, they are certain to have varied perspectives on the subject at
hand. Divergent thinking is an essential componen t of creativity. It is
widely assumed that highly innovative ideas originate in California’s
Silicon Valley since more than one -third of its resident engineers and
scientists are from nations other than the United States. Many
multinational corporations (M NCs) have recognized the value of diversity
and, as a result, employ a geocentric policy when employing employees.
4. Exposure:
Employees’ creative thinking is enhanced when they are exposed to a
variety of experiences, such as a foreign assignment, a sem inar, or an
extended leave.
5. Time and Resources:
It is common knowledge that individuals are more creative when they
have sufficient cash, materials, facilities, information, and time. This
criterion does not imply that creativity thrives in the most op ulent work
environments. People just need adequate resources to study alternatives
and put their ideas to the test.
It is sufficient to take constructive efforts to encourage creativity. It is also
critical to avoid practices that stifle innovation.
8.5 SU MMARY Creativity is defined as the process through which innovative yet
situationally relevant outputs are produced. The core of creativity is the
aspect of freshness, uniqueness, and novelty that is also contextually
suitable. There is novelty in a boss giving dictation while standing on his
head, but the behavior is scarcely suitable. To put it another way, to be
called creative, an act must be original and relevant to the situation.
Organizations must make innovative decisions in response to societal an d
technical developments. To deal with the volatility of change, future
managers will need to develop particular competences, one of which is the
capacity to stimulate creativity in organizations. : Although describing how
individuals generate creative idea s is challenging, academics have
constructed a model that illustrates the many stages of the creative
process. The model, as depicted in Fig, stipulates that the creative process
occurs in the following stages – Preparation, Incubation, Insight,
Verificati on. Creative persons are thought to have different intellectual
and psychological traits than their fewer creative colleagues.Various
factors like Creative individuals, Organizational assistance ,The corporate
culture , Diversity, Exposure, Sufficient time and resources.

munotes.in

Page 124

124 Sociology of Organizations
124 8.6 QUESTIONS 1. Explain the concept of Creativity.
2. Explain creati vity in an organization. Elaborate on the factors that
induce creativity within an organization.
8.7 REFERENCES  Human Resource Development P.C.Tripathi
 Organizational Behavior Jit S.Chandan
 Organizational Behavior - RIS.Suri and Sanj,iv V6rnna.
 P. Subba Rao — Essentials o f Human Resource Management and
Industrial Relations.
 Mamo ria and Gankar — Personnel Management.
 Stephen Robbins — Organizational Behaviour.



*****
munotes.in

Page 125

125 9
INNOVATION PROCESS AND CHANGE
Unit Structure
9.0 Objectives
9.1 Organizational Innovation
9.2 Definition
9.3 Stages
9.4 Types
9.5 Summary
9.6 Questions
9.7 References
9.0 OBJECTIVES  To introduce you to the concept of Innovation
 To understand the p rocess of change through innovation
9.1 ORGANIZATIONAL INNOVATION The process of moving new ideas from conception to implementation is
known as innovation management. This system is the foundation of a
company’s ability to innovate, and when used effecti vely, it may lead to
anything from a record -breaking new product to a revolutionary method of
meeting client requirements.
The pertinent query in any business is: How can an organization become
more innovative?
What is the formula used by businesses with e xtremely low failure rates,
such as Pfizer, Corning, GE, DuPont, 3M, and Newell Rubbermaid, to
continuously develop new products? Even while there is no surefire
recipe, some traits frequently show up in studies of innovative businesses.
They are divided i nto groups for structural, cultural, and human resource
factors. All change agents are advised that if they want to foster an
innovative culture within their firm, they should think about implementing
these traits. Let’s define what we mean by innovation.
9.2 DEFINITION Making things different is what is meant by change. A more specialised
form of change is innovation. Innovation is the application of a fresh
concept to the creation or enhancement of a good or service. Hence, all
inventions involve change , but not all changes involve new ideas or result
in substantial advancements. Organizational innovations can range from
little tweaks and expansions, like Nabisco’s addition of chocolate -dipped munotes.in

Page 126

126 Sociology of Organizations
126 and double -stuffed Oreos to the Oreo product line, to major
breakthroughs, like Jeff Bezos’ concept for an online bookshop in 1994.
The idea of innovation also includes new production process technologies,
new structures or administrative systems, and new plans or programmes
relevant to any of the above.
Ideas for I nnovation The most extensively researched possible source of
innovation has been structural factors. The following results are reached
after a thorough examination of the relationship between structure
innovation. To start, organic structures encourage inn ovation. Organic
organizations enable the flexibility, adaptation, and cross -fertilization that
make the adoption of innovations simpler since they have lower levels of
vertical differentiation, formalization, and centralization. Second,
management tenure is correlated with innovation. Evidently, having held a
management position for a while gives one credibility and the know -how
to complete duties and get the results one wants. A company can afford to
buy innovations, cover the expense of implementing inno vations, and
absorb failures if it has an abundance of resources.Finally, creative
businesses place a great value on interunit communication. Committees,
task groups, cross -functional teams, and other mechanisms that promote
communication across department al boundaries are heavily utilized by
these organizations. Innovative Concept or Harebrained Idea? Richard Nobel has a solution to the public's mounting frustration with airline service. He's going to create an air-taxi service unlike any other. Travelers will be able to summon one of his planes, like a taxi cab, to a nearby airport and then fly straight to the local airport clos- est to their destination. The cost? About the same as a first-class ticket. There are 2,071 airfields in Europe and 5,736 in North America. Yet only 3 percent are used by large commercial jets. Recognizing that there should be a large market for people who Nobel is creating the basis for a worldwide taxi-system. It would make use of small airports. It would rely on the global-positioning system to monitor flights and guide takeoffs and landings at airports without control towers. And it would have a state-of-the-art Internet- based reservation system. "The airlines think the solution to airport congestion is bigger planes and bigger airports," says Nobel. "That's precisely what passengers don't want. We're coming the other way, offering point-to-point service that you schedule at your dubbed the F1 Air Taxi, will be designed for trips of under 1,000 miles. Able to carry five passengers, this prop-jet would be able to meet or beat the average speed of commercial jets on short hops, get passengers closer to their destination, and avoid the congestion at big airports. The F1 is being built by Pegasus Aviation in the United Kingdom, with 18 companies providing goods and services to minimize costs. Will the idea work? Only time will tell. But one executive at the firm that is designing Nobel's Web site and reservation system munotes.in

Page 127

127 Innovation Process and Change want to travel on their schedule, not the airlines, and would prefer a more direct flight, convenience." The most innovative aspect of Nobel's idea is the development of a low-cost (un- der $2 million), fuel-efficient plane that would make up his taxi fleet. That plane, says, "This is out-of-the box thinking of a whole new approach to air- line congestion. I think [Nobel] has a real market-and a small-business air- craft that could take a lot of the market from existing business planes." Source: Based on O. Port. "Taxi! Get Me to Nebraska," Business
Week, November 20, 2000, pp. 134 -39.
Innovative businesses frequently share similar cultures. They support
trying new things. Both success and failure are rewarded. They enjoy
making mistakes. For instance, top management at Hewlett -Packard has
been effective in crea ting a company culture that encourages workers to
attempt things that don’t work out. Unfortunately, in too many
organizations, people are rewarded for the absence of failures rather than
for the presence of successes. Innovation and taking risks are exti nguished
in such settings. Only when people believe their actions will not result in
consequences will they offer and explore new ideas. Managers in creative
businesses understand that making uncharted assumptions inevitably leads
to failure.
We see that creative firms actively support their members’ training and
development in the human resources area so that they stay up to date,
provide high job security so that staff members don’t worry about being
fired for making mistakes, and inspire people to becom e change agents. A
novel concept is aggressively and joyfully promoted by idea champions
after it has been produced in order to get support, overcome obstacles, and
ensure that the innovation is put into practise. The evidence indicates that
idea champions have certain psychological traits, including a desire to take
risks, tenacity, and a very high level of self -confidence. Champions of
ideas exhibit traits that are typical of transformational leadership. With
their vision of the possibilities of innovatio n and their fervent personal
commitment in their purpose, they energize and inspire others.Also, they
excel at persuading others to support their cause. Also, idea champions
hold positions that provide them a great deal of decision -making freedom.
They can introduce and implement innovations in enterprises thanks to
their autonomy.
A creative concept must be transformed into a product that meets the
demands and desires of the people. Innovation refers to the process of
transforming a creative concept into a functional product. In particular,
innovation may be described as the effective application of creative ideas
inside a company; nevertheless, some businesses are more inventive than
others. munotes.in

Page 128

128 Sociology of Organizations
128 9.3 STAGES The Innovation Process Innovation, like creativity, do es not happen
overnight. The procedure is divided into stages and might take months or
years. The process of invention has four stages. Each level is explained
briefly below.

Setting the agenda for innovation is the first stage . This entails developing
a mission statement, which is a document that describes an organization’s
overarching direction and broad aims. Top management should be devoted
to innovation and driven to put the concept into action. Stage two
establishes the ph ases. Broad goals are broken down into more particular
activities at this stage, and the resources required to achieve them are
acquired.
The concepts are really executed in stage three. In other words, invention
is given life.
At the fourth step, ideas ar e evaluated. What happens to the concepts is
determined by the evaluation findings. There are three possible outcomes.
If the resultant ideas are a complete success, they will be approved and
implemented in the future. This concludes the procedure. Similar ly, the
process concludes when the proposal is proven to be a catastrophic failure.
However, if the new ideas show potential and make some progress toward
the organization’s goal but still encounter challenges, the process will
most likely restart at stage two.
Types of Innovation :
Whether or not they have consciously established an innovation process,
each innovative manager should constantly be in the quest for innovative
ideas to put into useage. Several categories of innovative concepts exist:
Organizat ional innovation is the change in a company’s procedures that
streamlines, automates, or modifies activities for the benefit of the firm as
a whole. Social innovation addresses issues in public settings and work
settings, usually to the advantage of collab oration and collective well -
being. A new or enhanced good or service that benefits a business —for
example, by enhancing the customer experience or opening up a new
market —is referred to as a product innovation. Step 1 SETTING THE AGENDA Step 2 SETTING THE STAGE Step 3 TESTING & IMPLEMENTING IDEAS Step 4 ASSESSING THE OUTCOME munotes.in

Page 129

129 Innovation Process and Change When ideas are fostered outside of an organis ation as well as within it, this
is referred to as open innovation. In order to decrease waste, increase
equity, or eliminate any negative effects a product or service may have,
sustainable innovation that seeks to address the environmental, social,
and ot her concerns that products may bring to the world. When formerly
exclusive goods or services are made more widely available to all
consumers, disruptive innovation occurs and the conventional routes of
competition are upset.
9.5 SUMMARY Making things diff erent is what is meant by change. A more specialised
form of change is innovation. Innovation is the application of a fresh
concept to the creation or enhancement of a good or service. Hence, all
inventions involve change, but not all changes involve new i deas or result
in substantial advancements. Innovation can be classified as per its impact
on the type of changes it brings about. Various types of innovation
includes organisational, open, sustainable and also disruptive. Innovation
passes through a seri es of stages which can be diagrammatically
represented as

9.6 QUESTIONS 1. Explain the concept of Innovation.
2. Explain various stages of Innovation
3. Explain types of innovation.
9.7 REFERENCES  https://online.stanford.edu/guide -innovation -management
 Human Resource Development P.C.Tripathi
 Organizational Behavior Jit S.Chandan Step 1 SETTING THE AGENDA Step 2 SETTING THE STAGE Step 3 TESTING & IMPLEMENTING IDEAS Step 4 ASSESSING THE OUTCOME munotes.in

Page 130

130 Sociology of Organizations
130  Organizational Behavior - RIS.Suri and Sanj,iv V6rnna.
 P. Subba Rao — Essentials o f Human Resource Management and
Industrial Relations.
 Mamoria and Gankar — Personnel Management.
 Stephen Robbins — Organizational Behaviour.


*****

munotes.in

Page 131

131 UNIT IV
10
ORGANIZATIONAL SOCIALIZATION
Unit Structure
10.0 Objectives
10.1 Introduction
10.2 Stages of Organisational Socialisation
10.3 Induction / Indoctrination Procedure
10.4 Summary
10.6 Questions
10.7 References
10.0 OBJECTIVES  To introduce the learner with the practice of Organisational Structure
 To understand the stages of organisational socialization
 To explore the concept of Induction
10.1 INTRODUCTION As a new employee, you are thrown into a work atmosphere that is vastly
different in many ways. As a r esult, it is important to master a variety of
new methods, abilities, and operations. To carry out the job assignment in
line with the rules, practises, and procedures, one must identify and
attempt to comprehend them.
It goes without saying that executing these responsibilities correctly is
critical to a new employee’s future performance. “Organizational
Socialization” refers to the procedure through which this goal is
completed. It is described as the process of transforming individuals from
outsiders to participating, effective members of organisations.
Organizational socialisation is the process through which a new recruit
comes to comprehend and embrace the values, standards, and beliefs
shared by others in the company. HR department personnel assist ne w
hires in ‘internalising the ways things are done in the firm.
While organisational socialisation is a complicated process with many
interconnected components, it generally entails achieving three key goals:
1. Providing workers with the basic work skill s and information required
for their positions. munotes.in

Page 132

132 Sociology of Organizations
132 2. Introducing them to the organization’s practises, rules, and
procedures.
3. Assisting them in adjusting to membership in their new work
groupings.
Management attempts to achieve socializing through trainin g, orientation,
and adjustment to work groups.
1. Training:
Employees participate in training programmes that range from classroom
education to extensive on -the-job training and learn what they need via
hands -on experience.
2. Orientation:
Because they help employees learn about their occupations, orientation
programmes are important socialising tools. Orientation allows
newcomers to engage freely with colleagues working at various levels and
learn acceptable behaviours.
3. Adjustment to work groups:
Work groups are the major source of assistance for new workers. People
around them are doing comparable professions and are frequently willing
to share their knowledge and skills with newcomers. Furthermore, they
can in those difficult early days, give much needed social support and
encouragement. As a result, it is critical that socialisation programmes aid
employees in integrating into their new work units.
10.2 STAGES OF ORGANIZATIONAL SOCIALIZATION Organizational socialisation is a continuous process th at begins before
individuals come on the scene and continues for weeks or months after
they arrive. Despite this, organisational socialisation is separated into three
fundamental periods, each of which is generally distinguished by specific
events at the b eginning and finish. These three steps are characterised by
‘Feldman’ as (1) Getting in, i.e., Anticipatory socialisation. (2) Breaking
in, also known as the Encounter stage. (3) The Metamorphosis stage has
begun.
Let us go through the three stages of orga nisational socialisation in depth.
1. Anticipatory Socialization:
Prior to joining an organization, individuals generally know quite a bit
about the organization. This knowledge, which serves as the foundation
for expectations about what the company and t heir specific employment
would be like, is collected from a variety of sources. In many situations, it
is given by friends or family who are already employed by the
organisation. These people supply a lot of information (not all of it munotes.in

Page 133

133 Organizational Socialization correct) that heavily influences the views and expectations of prospective
recruits.
Second, individuals frequently obtain knowledge about an organisation via
professional journals, magazine and newspaper articles, annual reports,
and other official sources.
Third, and possibl y most significantly, potential workers learn about such
information through the organization’s recruiting procedures, which
frequently entail a sophisticated blend of salesmanship and diplomacy.
Recruiters frequently present their company in flattering te rms, glossing
over internal issues and accentuating good characteristics. As a result,
potential workers have an overly optimistic view of employment. When
they get on the job and discover that their expectations were not realised,
they may experience disa ppointment, discontent, and even animosity for
being misled. Such reactions can lead to high turnover rates, low
organisational commitment, and other undesirable results, and they can
take the form of ‘entry shock.’
The realistic job previews’ strategy is one method for providing job
seekers with accurate descriptions of the jobs they will perform and the
organisations they will join. Employees who have been exposed to such
previews later report better levels of satisfaction and reduced turnover.
2. The enc ounter stage:
The second key step of organisational socialisation starts when employees
take on their new responsibilities. Several important duties await them at
this point. They must first learn the abilities necessary for their new
careers. Second, the y must become acquainted with the organization’s
practises and processes. This frequently entails unlearning old habits or
behaviours and gaining new ones. Third, new members of an organisation
must build positive social relationships with their co -workers . They must
get to know these folks and acquire their trust. Only then will they be
considered full members of the squad.
Of course, official training and orientation programmes take place at the
encounter stage. Training and orientation are intended to as sist persons in
completing tasks.
3. The metamorphosis stage:
When a person joins an organisation, he or she eventually becomes a full
member. This item may be marked by a formal, depending on the type and
length of the training programme employed. Indivi duals in the former
situation may attend a dinner, reception, or graduation ceremony to swap
their temporary, provisional title (e.g., trainee, apprentice) for a more
permanent one. Alternatively, individuals may receive a tangible
indication of their new status (e.g., the key to the executive washroom, a
pass to the executive dining room, a permanent identity badge). munotes.in

Page 134

134 Sociology of Organizations
134 Full admission into the work group may not be indicated by a formal
ceremony in the informal instance. It may instead be recognised by
inform al behaviours, such as being asked to lunch by co -workers or being
allocated a place at their table in the dining room.
Whatever shape it takes, the beginning phase of socialisation represents a
significant change for both individuals and organisations. Em ployees are
increasingly making permanent changes to their jobs (e.g., they resolve
conflicting demands between their jobs & personal lives), And
organisations increasingly see them as long -term members of the work
team rather than as temporary stand -ins.
10.3 INDUCTION / INDOCTRINATION PROCEDURE Induction or orientation is intended to equip new employees with the
information they require to work comfortably and productively in the
organisation. It is a “systematic & organised introduction of employees to
their employment, their co -workers & the company”.
Full admission into the work group may not be indicated by a formal
ceremony in the informal instance. Informal acts, such as being invited to
lunch by co -workers or being allocated a seat at their table, may instead be
leveraged to acknowledge it.
(A) Strategic choices of Induction programme :
Before developing an induction/orientation programme, a company must
make four strategic decisions. They are : 1 -formal and informal. 2 -
Individual or collective. 3 - Serial or disjuncti ve, and 4 -investiture or
divestiture.
1. Formal/Informal:
In informal induction/orientation, new recruits are placed straight on the
job and are expected to assimilate to the task and the organisation.
When new workers enter the organisation, the manageme nt follows a
systematic schedule for formal orientation. The management’s aims will
determine whether formal or informal orientation is used.
2. Individual/collective:
Another decision that management must make is whether to induct new
personnel individua lly or in groups. Individual orientation is likely to
produce significantly fewer uniform beliefs than group orientation.
Individual orientation is more likely to retain individual variations and
opinions since orienting each person independently is costly and time
demanding.
The above -mentioned challenges are solved by the new recruits’ collective
orientation. The group orientation technique is used in most major
organisations. munotes.in

Page 135

135 Organizational Socialization 3. Serial/Disjunction:
When an experienced employee acts as a mentor and role model for new
recruits, orientation becomes serial. When new employees do not have
predecessors to instruct or model their behaviour after, the orientation
becomes disjunctive.
Traditions and rituals are preserved through serial orienting. On the other
end of the spectrum is disjunctive orientation. Because the new recruit is
not encumbered by traditions, such induction is likely to yield more
original and creative personnel.
4. Investries/Divestiture:
Investiture orientation aims to validate the usefulness of the qualities that
the individual brings to the new employment. New recruits are given the
authority to choose their office furniture and subordinates, as well as make
other decisions that may impact their success.
Investiture orientation, on the other hand, aims to make tiny changes in the
qualities of new recruits, despite the fact that he or she was chosen based
on his or her potential for performance.
(B) Steps involved in induction programme:
When organising the induction programme, the HR departm ent may take
the following steps:
1. Greetings and welcome to the organisation.
2. Describe the firm.
3. Demonstrate the location/department where the new hire will be
working.
4. Give the new hire the company’s manual.
5. Explain the amount of unionism in various job groupings.
6. Explain the importance of attendance and punctuality, as well as
salary, perks, and vacations.
7. Clarify uncertainties by encouraging others to ask inquiries.
8. Explain future training possibilities and job opportunities.
(A) The content of induction programme:
The content (topic) Coverdale in employee induction programme is;
a) Organisational Issues:
1. History of company.
2. Names and titles of key executives. munotes.in

Page 136

136 Sociology of Organizations
136 3. Employees title and department.
4. layout of physical facili ties.
5. Probationary period
6. Products/services offered
7. overview of production process
8. Company policies and rules
9. Disciplinary processes
10. Employees handbook
11. Precautions
b) Employee Benefits:
1. pay scales, pay days.
2. Vacations, holidays
3. Rest pauses
4. Training avenues
5. Counselling
6. Insurance, medical, recreation, retirement benefits.
c) Introduction:
1. To supervisors
2. To co -workers
3. To trainer
4. To employee counsellor
(B) Follow up:
Despite the best efforts of supervisors , certain gaps in the orientation
programme may persist. Certain concepts may have been lost on new
recruits. While covering a significant amount of terrain, the supervisors
may have overlooked some critical issues. A face -to-face follow -up
meeting might b e scheduled at regular intervals, such as every three or six
months. The primary goal of such follow -up orientation is to provide
employees with instruction on a variety of general and relevant topics
without leaving anything to chance.

munotes.in

Page 137

137 Organizational Socialization 10.4 SUMMARY “Organizational Socialization” refers to the procedure through which this
goal is completed. It is described as the process of transforming
individuals from outsiders to participating, effective members of
organisations.
Organizational socialisation is the pro cess through which a new recruit
comes to comprehend and embrace the values, standards, and beliefs
shared by others in the company. HR department personnel assist new
hires in ‘internalising the ways things are done in the firm. It includes
Anticipatory, Encounter and Metamorphosis stage. Induction or
orientation is intended to equip new employees with the information they
require to work comfortably and productively in the organisation. It is a
“systematic & organised introduction of employees to their em ployment,
their co -workers & the company”.
Full admission into the work group may not be indicated by a formal
ceremony in the informal instance. Informal acts, such as being invited to
lunch by co -workers or being allocated a seat at their table, may inst ead be
leveraged to acknowledge it. Before developing an induction/orientation
programme, a company must make four strategic decisions. They are: 1 -
formal and informal. 2 -Individual or collective. 3 - Serial or disjunctive,
and 4 -investiture or divestiture.
10.4 QUESTIONS 1. Explain the process of Organisation Socialization.
2. Explain the stages of organisation socialisation
3. Explain the process of Induction
10.5 REFERENCES  Human Resource Development P.C.Tripathi
 Organizational Behavior Jit S.Chandan
 Organizati onal Behavior - RIS.Suri and Sanj,iv V6rnna.
 P. Subba Rao — Essentials o f Human Resource Management and
Industrial Relations.
 Mamoria and Gankar — Personnel Management.
 Stephen Robbins — Organizational Behaviour.
 https://online.stanford.edu/guide -innovation -management

***** munotes.in

Page 138

138 11
LEADERSHIP: MEANING,
EFFECTIVENESS, QUALITIES, SKILLS
AND FUNCTIONS
Unit Structure
11.0 Objectives
11.1 Introduction
11.2 Meaning of Leadership
11.3 Effectiveness of Leadership
11.4 Qualities for good leadership
11.5 Skills for Leadership
11.6 Func tions of leadership
11.7 Case studies on Leadership
11.8 Summary
11.9 Questions
1.10 References
11.0 OBJECTIVES  To learn about the meaning of Leadership and the different qualities a
leader needs to possess.
 To learn about the skills and functions c onnected to leadership and
that of
11.1 INTRODUCTION After joining an orgsni stion, you may be working with some organization
where you would be expected to work with a team or even under a leader.
You could be even at a given point of time assigned a team for wh ich you
could be a leader. Hence, this chapter becomes useful, it would help you
know the importance of the leader and his/her leadership qualities, skills
and functions.
11.2 MEANING OF LEADERSHIP According to Collins Dictionary, Leadership refers to t he qualities that
make someone a good leader, or the methods a leader uses to do his or
her job. He/ She is the one who is in charge of the organization growth and
development. The act of motivating and directing a group or an individual
to accomplish a t ask is known as leadership. Leaders motivate followers to
do the steps necessary for success. Learning and developing the relevant
skills is necessary to become a great leader. Fortunately, with time and
effort, anyone can learn these abilities. munotes.in

Page 139

139 Leadership: Meaning, Effectiveness, Qualities, Skills and Functions Every orga nisation has leaders at every level, from CEOs and senior
executives to supervisors and project managers. Even as a junior
employee, you might use your leadership abilities to teach new workers or
run a meeting. Depending on the team and circumstance, each leader may
have a certain leadership style or employ a combination of several. There
are several types of leadership, namely:
 Transactional nature which establishes fixed rewards for getting
results.
 Transformational form which emphasizes establishing a nd
accomplishing organisational goals
 Autocratic type which prioritizes setting objectives based on
effectiveness
 Democratic type where the leaders listen to members’ opinions and
incorporate them.
Organizations play an important role in providing scope fo r new leaders to
emerge. A conducive climate creates new leaders to grow based on their
skill sets. Hence, even today several organizations provide training and
career development choices. There are practices like the senior most
leader interacting with th e juniors. A good leader helps their team
overcome hurdles, supports a favourable environment, and increases
employee engagement. Moreover infectious, effective leadership
encourages subordinates to display these qualities in their own work.
A leader must take the company principles and ethics into account and aid
in creating a culture where everyone may provide their best effort.
fostering a culture of unity, a sense of community. Max Weber discusses
about Leadership associated with characteristics like Ch arisma. Several
Social movements also reach its goal because of a great leader who looks
out for the welfare of the people and has a vision to carry it out. A good
leader can convert a country reaching from the state of poverty to that of
richness.
11.3 E FFECTIVENESS OF LEADERSHIP What makes leadership effective is the central query in leadership studies.
Influence is at the heart of leadership, and the performance of a leader is
often measured by how well they inspire their subordinates to work
towards th e achievement of common goals (Bass, 1990; Yukl & Van
Fleet, 1994). However, the idea of shared objectives is at best vaguely
defined, and in reality, the majority of leadership research focuses on how
leadership affects, measures leadership effectiveness. A successful leader
is a must for any organisation. They can aid in creating effective teams
inside an organisation and guarantee that initiatives, projects, and other job
tasks are carried out properly. Anybody may practise and enhance their
leadership s kills because a leader needs to have a variety of interpersonal
and communication skills. Accountability distinguishes between potential
leaders and established leaders. You will move into leadership much more munotes.in

Page 140

140 Sociology of Organizations
140 easily if you can develop a sense of responsib ility for your work as a
subordinate.
A great deal of focus on ensures that the job expectations are clear. An
effective leader communicates the organization’s goals and the role for
employees so that the team functions effectively. A leader also does not
just react when teams fall short of expectations. Instead, the leader
rewards the employees when they achieve the expected results and does
not punish them for not meeting them.
11.4 QUALITIES FOR GOOD LEADERSHIP Taking ownership is one of the best ways to be a successful team member.
In other words, the good leaders of tomorrow don’t single out their
comrades for blame when the team fails or claim all the glory when the
team achieves success.
When working together on projects, team members who step up an d take
responsibility for their actions increase respect and influence. Even when a
collaborative effort fails, accepting responsibility for it demonstrates to
your co -workers your willingness to take responsibility for your work and
grow from your mistake s.
Adaptability and flexibility:
Even in the face of adversity and change, great leaders foster team growth.
Since the business world is characterised by perpetual change, adaptability
is a key factor in predicting how successful an organisation will be i n the
future. Because change is inevitable, leaders must be flexible if they want
their teams to be flexible as well. In adversity, adaptable leaders really
excel.
In times of change, our ability to quickly adapt helps us not just survive,
but also thrive. By including employees in the process, leaders are better
equipped to accomplish this and assist their teams in doing as it gives
them access to a diversity of perspectives and methods. Effective problem -
solvers are flexible, innovative, and adaptable lea ders. Even in contexts
where change is relentless, they assist their staff in adapting so they can
continue to perform at a high level. Employees may experience a much -
needed sense of stability in potentially difficult times and may be better
able to adapt if leaders welcome change and show a willingness to adapt
swiftly while still being deliberate and keeping long -term goals in mind.
Leaders that are flexible are able to grow from their errors and adopt an
innovative approach. They are able to keep up a s teady work environment
to provide workers a sense of psychological safety, and they can mentor
them as they adjust, reducing their dread of the future and increasing their
confidence in taking on difficulties.

munotes.in

Page 141

141 Leadership: Meaning, Effectiveness, Qualities, Skills and Functions Authenticity:
Genuine leadership is ethical and transparent, promoting transparency, and
while making decision -making welcoming feedback from others. Genuine
leaders are also devoted to their organisations, workforce, and they are
enthusiastic about the work they undertake. They are firmly guided by
values, are true to those ideals, and are true to themselves. Because it
communicates honesty, transparency, openness, and consistency,
authenticity is essential for developing and sustaining strong, trustworthy
relationships with employees. It also aids leaders in increasing their
influence over the people they lead. Being an authentic leader involves
having self -awareness, active listening, self -management, empathy, and
humility. Be open to constructive criticism that can help you become more
aware of yo ur blind spots.
Communication:
A leader’s duties include articulating the business culture and setting an
example of the mission, vision, and core values of the company. This
influences how employees act and behave. Leaders must effectively
communicate goa ls, objectives, and expectations to their team members in
order to offer them the clarity they need to complete tasks competently
and with confidence. Leaders set an example for effective communication
by being approachable and open to suggestions. Many co rporate leaders
understand that in order for staff to perform to their highest potential, they
need feedback. Employees need feedback on a regular basis in order to
perform at their professions and grow the level of engagement needed for
retention.
Compass ion:
Those that are compassionate have good intentions and a sincere care for
others. Leaders who are compassionate are viewed as being more capable
and powerful than leaders who are not empathetic. Compassion in
leadership builds solid, trustworthy relati onships between leaders and their
teams, which supports fruitful teamwork. Given the possible harmful
impact that having power can have on us, it is an especially important
ability for leaders to possess. Leaders can offer employees practical advice
for en hancing their working conditions and preserving a healthy work -life
balance.
Self-Awareness:
A person’s capacity to recognise and stay conscious of their emotions as
they arise is referred to as self -awareness. Everybody can benefit from
having this skill, but surprisingly many people don’t have it. Less than
15% of people are genuinely self -aware, according to research by Dr.
Tasha Eurich, author of the book Insight, despite the fact that 95% of
people believe they are moderately or highly self -aware. Good
communication, trust, and increased accountability are all promoted by
self-awareness. Also, it aids in the better positive processing of emotions,
which empowers leaders to take on problems more skillfully. munotes.in

Page 142

142 Sociology of Organizations
142 Gratitude:
The act of expressing appreciation s tarts a positive cycle in which both the
giver and the receiver gain. Gratitude merely improves our mood. Due to
the fact that most people believe they’d be willing to put in more effort for
an appreciated boss, gratitude can even help you become a better leader,
which can have additional favourable effects. Leadership is a blend of
numerous diverse skills working together, not simply one skill. The
majority of people have experienced both good and ineffective leadership
in the workplace. Every good soft sk ill could be categorised as a
leadership skill. For instance, by hearing the suggestions and worries of
the team, active listening assists leaders in completing initiatives. For
instance, empathy enables leaders to comprehend how their team members
are fee ling regarding their workload, working conditions, and co -workers.
11.5 SKILLS FOR LEADERSHIP  Skills that form a strong leader, for instance, include:
 Compassion; sensitivity; and attentive hearing
 Trustworthiness, reliability, inventiveness, positivity, effective
feedback, prompt communication, teamwork, flexibility, risk -taking,
and the capacity to mentor and teach.
 Competencies: Emotional Intelligence: An individual’s capacity to
understand and control their own and other people’s emotions is
known as e motional intelligence.
 Self-awareness: The capacity to identify your own virtues, flaws, and
feelings.
 Self-management: The capacity to control your emotions,
particularly under conditions of extreme stress.
 Social awareness: The capacity to discern the f eelings of others. This
is also frequently referred to as having empathy.
 Relationship management: The capacity to control interpersonal
relationships through persuasion, coaching, mentoring, and dispute
resolution.
 Diverse skills come together to form com munication.
 Flexibility: The capacity to modify your communication style to suit
various contexts and target audiences.
 Active listening: The capacity to maintain interest and focus during
discourse while paying attention to both verbal and non -verbal cue s.
 Transparency: The capacity to openly and transparently
communicate your company’s objectives, prospects, difficulties, and
strategy. munotes.in

Page 143

143 Leadership: Meaning, Effectiveness, Qualities, Skills and Functions • Clarity: The capacity to make a message simpler by offering just the
correct amount of detail for a particular audienc e to spur them to
action.
• Curiosity: The capacity to pose probing, open -ended questions that
elicit intellectual discourse.
• Empathy: As previously established, this is the capacity to discern
the emotions of the people you communicate with and to modif y your
communication style accordingly.
• Body language: Exhibiting friendly, approachable body language that
fosters rapport and encourages people to voice their ideas.
• Approachability : A leadership style that fosters strong relationships
with team memb ers and is characterised by warmth and genuineness.
• Credibility: A leadership approach characterised by humility,
competence, and resoluteness, in which the team sees the leader as
someone who is deserving of their respect and support.
• Aspiration: A leadership approach characterised by a distinct vision
and high standards that inspires team members to provide their all -out
effort. Determination Things rarely go exactly as planned in business.
There will always be factors that can derail your plans, rega rdless of
how well your business strategy or product launch accounts for
recognised risks. As a leader, you must be adaptable and resilient in
the face of stress and have the essential problem -solving abilities to
direct your team towards fresh strategies.
• Financial Literacy: It is critical to understand that a leader spends a
significant amount of time on company strategy, which includes
choosing organisational goals and working to achieve them. These
objectives will, of necessity, be closely related to issues with financial
performance, including cash flow, profitability, and other important
measures. All corporate executives should maintain their financial
literacy in light of this.
• All leaders need the following financial competencies in addition to
basic financial literacy:
• The study of financial statements, including cash flow statements,
income statements, and balance sheets.
• Ratio analysis, which enables a deeper comprehension of a company’s
performance.
• Cash flow management, being one of th e important elements for
making the company run and sustain at a consistency level.
• Forecasting, which is the capacity to foresee future transactions, cash
flows, and earnings
munotes.in

Page 144

144 Sociology of Organizations
144 Check Your Progress
1. Discuss effectiveness and leadership.
2. Di scuss the meaning of leadership in few lines .
11.6 FUNCTIONS OF LEADERSHIP There are several functions of leadership like
1. Setting goals:
Setting goals for team members to inspire them to work confidently and
joyfully is a leader’s most cruc ial responsibility. Their goal is to develop a
road map that will show their team members where to go and how to help
them get there.
2. Organization:
One of a leader’s other key responsibilities is to put a group of individuals
in charge of a task that t hey can complete successfully. They must be able
to assign roles to people according to their potential in order to get the best
performance out of them. Hence, this function is essential to raise morale
of the members of the organization.
3. Exercising i nitiative:
Taking initiative in the benefit of the team or the organisation is one of the
key roles of a leader. Leaders must have the self -assurance to express their
original thoughts and to inspire others to do the same. They also make sure
that everyone in the group feels comfortable approaching them with their
original ideas.
4. Teamwork among workers:
It is the responsibility of leaders to bring individual and organisational
interests into harmony. The strategy a leader uses is crucial in
accomplishing the same. They must make sure that group members are
willing to work together to achieve the shared goals.
munotes.in

Page 145

145 Leadership: Meaning, Effectiveness, Qualities, Skills and Functions 5. Inspiration and guidance:
The fundamental responsibility of the leader is to inspire and direct the
team or person. They need to encourage the t eam members to work
towards their objectives and to offer support when they run into problems
doing so. Also, they continuously support them by applauding their efforts
and giving them assistance as needed.
6. Communication between management and employees :
A leader is crucial in serving as a liaison between the workforce and
management. They help their team members comprehend how the rules
and policies developed by management will benefit them by explaining
them to them. Also, an effective leader represent s the goals and objectives
of their subordinate in front of the management and other members.
7. Making policy:
A leader’s ability to formulate policies is crucial to the efficient operation
of the business. The guidelines to follow for the efficient exec ution of
work operations are included in the policies that leaders create. By
developing policies, leaders also design the process that must be followed
by every team member in order to advance the objectives of the
organisation.
Being purpose -driven at al l times, even in difficult situations; reflecting on
a situation and weighing your options before responding; working to
always learn and better yourself and your team; maintaining good
friendships with friends, co -workers, and mentors you can trust; and u se it
during the time of crisis.
Check Your Progress
1. Discuss the different types of leadership
2. List out some of the functions of leadership
munotes.in

Page 146

146 Sociology of Organizations
146 11.7 CASE STUDIES ON LEADERSHIP 1. Dr. Abdul Kalam:
One of the best leadership exampl es is that of Dr. Kalam who was a
scientist and later on went to become the President of the country. He
narrates one example from his life as a scientist. In which once he was
appointed as a project director of India’s satellite launch vehicle program
named SLV -3. The project didn’t work out as expected after launch and it
fell down in the Bay of Bengal. At time, the chairman Mr. Satish Dhawan
called a press conference and he took the responsibility for the failure
stating that the team and made enough ef forts but they were in need of
more technological support and infrastructure. Kalam, said though the
failure was of him but Mr. Satish Dhawan took the responsibility.
While later in his life in the year 1980 they launched a satellite and it was
successful . Prof. Dhawan then said to Dr. Kalam to handle the press
conference. Through this event, Mr. Kalam shares an important lesson
than a leader stands by the group in crisis and takes the blame on himself
and when it is successful then the credit is given to the team.
2. The story of origin of Tata Steel:
In 1867 Sir, Jamshedji Tata heard one of the lectures where the British
Essayist Thomas Carlyle spoke about the importance of iron and steel.
After listening to his lecture, he came back to India and set up the steel
plant. The Britishers who were ruling India that time also liberalised the
mineral concession policy in a way it benefited both the Britishers for
railways and wars. The Tata steel has helped India even today. Even
during famines wars, the fami nes when company wasn’t making much, the
Tata continued paying their employees. This shows the integrity ability to
learn and integrity and values of Tata group and how it helped lakhs of
people even today.
Even during the 26/11 attack in Mumbai all the e mployees who existed in
the hotel were compensated equally irrespective of their job roles. There
was no hierarchy followed. This shows the leadership qualities among
Tata leaders and which further develops trust among both employees and
that of shareholde rs and consumers (general public).
3. Cipla company:
The Aids medicine had monopoly of the Western Countries through
patents. It is because of the Cipla Yusuf Hamied Chairperson and his team
the medicine was made affordable and as a result many Indians an d even
several lives in poor countries like Africa lakhs of lives could be saved. It
was Mr. Hamied Chairperson who spoke in the conference against the
injustice done by the Western Pharma companies through intellectual
property and monopolizing it and sel ling it expensively. It was the
visionary leader of Cipla who further created the fight for AIDS medicine
and even asked for change in the IP policies and through generic medicine munotes.in

Page 147

147 Leadership: Meaning, Effectiveness, Qualities, Skills and Functions and raw materials new combinations millions of lives have been changed
till date.
4. ORS:
Two cholera patients were successfully treated with oral glucose saline by
Captain Phillips of the US Army in 1964. After this, researchers at the
Infectious Diseases Hospital in Calcutta and the Cholera Research
Laboratory in Dhaka made co ntributions to the creation of the modern oral
rehydration salt (ORS) solution.
In the years 1965 –1969, Pierce et al. and others made the first provable
case for the effectiveness of standard ORS. Dr. Dilip Mahalanabis
established the effectiveness of ORS in cholera cases among Bengali
refugees during the Bangladesh Liberation War (1971 –1972), while Sircar
et al. demonstrated the effectiveness of ORS in a cholera epidemic in
Manipur in 1978. The effectiveness of ORS in treating children with
diarrhoea, incl uding cholera, was firmly proven by De et al in 1974 and
Chatterjee et al in 1978. Based on this knowledge, Based on this
knowledge, the World Health Organization started the global effort to
manage diarrheal infections in 1978, with ORS as its core and a short -term
goal of lowering diarrhea -related mortality. It wasn’t until 1979 that Dr.
Daniel Pizarrow and colleagues proved the WHO -ORS, which contains 90
mmol/liter of sodium, is safe and effective for newborns with dehydration
diarrhoea. They also proved that the WHO -ORS is safe when given in a
2:1 ratio with plain water. In a way, reducing millions of death in the
world during famines, for childrens.
11.8 SUMMARY A leader must take the company principles and ethics into account and aid
in creating a cu lture where everyone may provide their best effort.
fostering a culture of unity, a sense of community. According to Collins
Dictionary, Leadership refers to the qualities that make someone a good
leader, or the methods a leader uses to do his or her job. He/ She is the one
who is in charge of the organization growth and development. The act of
motivating and directing a group or an individual to accomplish a task is
known as leadership. Leaders motivate followers to do the steps necessary
for success. va guely defined, and in reality, the majority of leadership
research focuses on how leadership affects, measures leadership
effectiveness. A successful leader is a must for any organisation. They can
aid in creating effective teams inside an organisation and guarantee that
initiatives, projects, and other job tasks are carried out properly. Anybody
may practise and enhance their leadership skills because a leader needs to
have a variety of interpersonal and communication skills. Accountability
distinguishes b etween potential leaders and established leaders. You will
move into leadership much more easily if you can develop a sense of
responsibility. Flexibility, Authenticity are some of the qualities a leader
needs to possess. The chapter also discussed the dif ferent functions
associated with that of leadership. We also looked upon some case studies munotes.in

Page 148

148 Sociology of Organizations
148 like that of Tata company, ORS invention, the story behind the Aids
medicine and that of the Dr. Kalam discussing about leadership skills in
his real life.
11.9 QU ESTIONS 1. Discuss the functions of leadership
2. Write a note on skills and leadership
3. Explain in brief the leadership qualities.
11.10 REFERENCES  https://avenuemail.in/the -founding -story -of-tata-steel-jamshedpur/
 https://qz.com/india/1666032/how -indian -pharma -giant -cipla -made -
aids-drugs -affordable
 Bhattacharya SK. History of development of oral rehydration therapy.
Indian J Public Health. 1994 Apr -Jun;38(2):39 -43. PMID: 7530695.
 https://knowledge.wharton.upenn.edu/article/former -president -apj-
abdu l-kalam -a-leader -should -know -how-to-manage -failure/
 van Knippenberg, D. (2020). Meaning -based leadership.
Organizational Psychology Review, 10(1), 6 -28.
 https://in.indeed.com/career -advice/career -development/leadership -
roles
 https://www.snhu.edu/about -us/newsroom/business/qualities -of-a-
good -leader
 https://businessleadershiptoday.com/what -are-the-7-leadership -traits/
Qualities
 https://www.indiatoday.in/india/east/story/dilip -mahalanabis -ors-oral-
rehydration -solution -diarrhoea -cholera -168545 -2013 -06-29 ORS
 Bhattacharya SK. History of development of oral rehydration therapy.
Indian J Public Health. 1994 Apr -Jun;38(2):39 -43. PMID: 7530695.
 https://www.collinsdictionary.com/dictiona ry/english/leadership


***** munotes.in

Page 149

149 12
CONFLICT RESOLUTION
Unit Structure
12.1 Introduction
12.2 Types of Situations
12.3 Causes of Conflict
12.4 Effects of Conflict
12.5 Effective management of Conflict
12.6 Summary
12.7 Questions
12.3 References
12.1 INTRODUCTION Conflict is defi ned as a disagreement between two or more individuals or
groups, with each individual or group attempting to gain acceptance of its
own point of view or objectives over those of others. Because people
differ in their attitudes, values, and goals, conflict among them is
unavoidable. As a result, management is more concerned with containing
and managing conflict for organizational and individual gain than
eradicating it.
12.2 TYPES OF CONFLICT SITUATIONS Conflict has always been seen as undesirable; thus, i t should be avoided
wherever possible and addressed as soon as possible if it arises. As a
result, managers must grasp the sort of conflict they are dealing with. The
following are some examples of conflict.
1. Individual conflict (value related):
Individ ual conflict is usually value related when the role that an individual
is expected to play does not correspond with the values and beliefs that the
individual holds. For example, a secretary may have to lie on instructions
that her boss is not present in o rder to avoid an unwanted visitor or
unwanted phone call. This may create a tension in the head of the
secretary, who may have established a truth -telling ethic. Similarly, many
Indian vegetarians who come to America and find it difficult to maintain
their vegetarianism may doubt the importance of the vegetarian concept,
generating a conflict in their thoughts.
A person may have a role conflict in addition to these value conflicts. For
example, a telephone operator may be required and urged by her
superviso r to be pleasant to consumers, who may also complain that she
spends too much time with customers. In her perspective, this would
create a role conflict. Individual conflict may also emerge when a person munotes.in

Page 150

150 Sociology of Organizations
150 must choose between two equally desired alternatives or between two
equally bad aims, for example.
2. Interpersonal conflict:
This is the most well -known type of conflict since it includes
disagreement between persons. Interpersonal conflicts may arise when two
managers compete for limited capital and huma n resources. Similarly,
interpersonal conflicts may arise when three equally worthy academicians
are all up for promotion, but only one of them can be promoted due to
budget and positional restrictions. When finite resources cannot be shared
and must be ga ined, the struggle becomes even more painful.
Another sort of interpersonal conflict is disagreement about the
organization’s aims and objectives. For example, some members of a
school board may desire to give sex education classes, while others may
find t hese morally objectionable, resulting in conflict.
Conflicts can emerge not just over the form and substance of goals and
objectives, but also over the means to achieve those goals. For example,
two marketing managers may disagree about which promotional s trategies
would result in better sales.
3. Discord between the group and the individual:
Individuals may desire to stay inside the group for social reasons, but they
may disagree with the organization’s techniques. All formal and informal
groups have devel oped certain norms of behavior and operating standards,
and all members are required to conform to these standards.
For instance, at certain restaurants, all waitresses split the tips equally,
which might lead to tension if one of them feels she deserves m ore due to
her particularly efficient and polite manners.
Similar to this, if a group strikes for a particular purpose or may not be
able to afford to strike, this might lead to conflict with the group. This
conflict may also be between the management ager and his subordinates as
a group or between the leader and the led
4. Intergroup rivalry:
A set of departments, sectors, or work teams form an interconnected
network known as an organization. These disputes are more caused by
organizational structure -related problems than they are by personal
differences. For instance, there is an ongoing and aggressive disagreement
between the management and the union. One of the regrettable and
frequently publicized clashes between line and staff.


munotes.in

Page 151

151 Conflict Resolution 12.3 CAUSES OF CONFL ICT Conflict is a result of several circumstances and variables. These can be
classified into two mains categories: aspects of human connections and
aspects of organizational structure or functioning.
1. Conflict’s behavioral aspects:
These Human emotion s, attitudes, ideals, and perceptions, among other
things, all contribute to conflict. A straightforward misunderstanding or
communication fault may be the cause of this disagreement. Many issues
might arise from a communication that is misinterpreted. Con flict can also
result from opposing points of view on numerous matters. Two vice
presidents, for instance, can have different opinions regarding the best
strategy to employ.
Conflicts may also include a component that is motivated by emotions,
sentiments, perceptions, and ideals. These emotions may be ones of rage,
mistrust, fear, or even just hate as a result of personality differences. This
may also be based on factors like color, sex, or religion. Some males hold
negative opinions on women. Some families have a long history of
hostility.
Conflicts over values are caused by various values, some of which may
have cultural roots. For instance, one vice president could wish to
terminate certain employees to minimize expenses, but another vice
president might value people more than money and favor alternative cost -
cutting measures. Another illustration would be a professor who values
independence in his teaching strategies and would have problems if his
approaches were closely monitored.
An individual’s person ality itself might lead to conflict. For instance,
some people are naturally hostile and confrontational, making them very
prone to initiate a fight.
2. Structural aspects of conflicts:
Conflicts like this develop as a result of problems with the organiza tional
structure as a whole and its Sub -Units. Several of these problems involve,
A] Role insecurity:
A role is a group of tasks connected to a particular position within an
organization or in society, because his function is not clearly defined if
certa in work tasks are poorly defined, the person performing them will not
operate in the manner in which others want him to. Conflict will result
from this, especially between these people and those who rely on his
efforts. Due to the uncertainty of roles, a h ospital or medical clinic that
employs several doctors with overlapping specialties may have conflict.

munotes.in

Page 152

152 Sociology of Organizations
152 B] Designing of work flow:
Conflicts result from poorly planned coordination needs and poorly
designed work -flow structures, especially when jobs are interconnected.
For instance, at a hospital, physicians and nurses must collaborate, and
their roles are closely related. Conflict and misunderstanding will result
from poor work coordination. Similar to this, the waiter and the cook at a
restaurant rely on one another for essential knowledge and assistance.
Conflict and issues would arise from an uncoordinated work flow and
poorly structured processes.
3. Organizational causes of conflict:
The first and most visible source of conflict within organization s is a
struggle over limited resources. No organization has infinite resources,
and disputes can develop over the allocation of time, money, resources,
tools, or individuals. Interdependence and ambiguity about authority or
accountability are two organizat ional causes of conflict.
12.4 EFFECTS OF CONFLICT Contradiction truly has a “double -edged” effect in professional situations.
Depending on the cause and the progression of the situation, both positive
and negative outcomes are possible.
(A) Positive aspec t of Conflict:
1. Conflict may have a beneficial aspect. While conflict frequently
disrupts organizations, it can occasionally result in significant
advantages. The first benefit of conflict is that it makes previously
hidden issues visible.
2. Disagreeme nt frequently prompted the exploration of novel concepts
and methods. It promotes creativity and change, to put it briefly. This
is the case because, when an open disagreement breaks out, an
organization or work unit cannot resume “business as usual.” The
necessity for difficult choices, new regulations, significant staff
changes, or even a new internal structure is emphasized, and further
transformation may be necessary.
3. Because it strengthens group loyalty, conflict can improve the
performance of the g roups or units involved by motivating members
to work more. Each aspires to surpass their previous standards of
excellence. To surpass a rival and validate its own good self -image.
4. Conflict also motivates both parties to closely observe one another’s
performance in order to completely understand what the rival is
planning. This can also improve performance and motivation.
(B) Negative aspect of Conflict:
One of the drawbacks of conflict is that it might have certain unavoidable
bad consequences that don’ t need much explanation. munotes.in

Page 153

153 Conflict Resolution 1. Disagreement can be highly unpleasant and frequently results in
strong negative feelings.
2. Communication between individuals, groups, or divisions is
frequently disrupted by conflict. It can stop them from coordinating.
3. It takes time and resources away from important tasks in an effort to
achieve important organizational goals. Conflict may substantially
hamper an organization’s ability to function in all of these ways.
4. It has been discovered that disagreement between g roups of
individuals increases their leaders to switch from participatory to
authoritarian ways.
5. When there is disagreement, there is a greater propensity for both
parties to engage in derogatory stereotyping.
6. When there is a dispute, both sides ten d to stick together and highlight
their allegiance to their respective groups or departments. Take a look
at the detrimental effects of warfare.
The efficacy of an organization can in fact be boosted by conflict in
several ways. It’s crucial to remember, t hough, that these advantages will
only materialize if conflict is well handled and does not spiral out of
control. This is followed by the back’s unfavorable side.
12.5 EFFECTIVE MANAGEMENT OF CONFLICT If conflict may, in fact, result in both advantages a nd costs, then regulating
its occurrence is the main challenge companies have with relation to this
process. Fortunately, a variety of ways have been shown to be helpful in
this regard. Among the few methods for managing conflicts effectively
are;
1. Barga ining:
Bargaining or negotiation is the most popular method for resolving
organizational problems and managing them successfully. The procedure
involves the exchange of offers, counteroffers, and concessions between
the disputing parties, either personally or through intermediaries. If the
procedure is successful, a compromise that is acceptable to both parties is
reached, and the dispute is successfully settled. Instead, if negotiations
fail, there may be an expensive standoff, which would escalate the dis pute.
2. Third Party or Outside Intervention:
Despite both parties’ best efforts, negotiations occasionally come to a
stalemate. When this happens, a third party —someone who is not directly
engaged in the dispute —is frequently sought out to help. The most popular
types of such third -party involvement are mediation and arbitration. In
mediation, a third person makes many attempts to help the disputants
reach consensual agreements. A mediator cannot force an agreement on
the parties since they lack statutory authority to do so. munotes.in

Page 154

154 Sociology of Organizations
154 On the other hand, an arbitrator has the authority to impose, or at the very
least, strongly endorse, the conditions of an agreement. The parties
mutually agree to these conditions in binding arbitration. The two parties
might each choo se to reject the suggested agreement in voluntary
arbitration. In traditional arbitration, the arbitrator is free to propose any
set of terms. The arbiter in a final offer arbitration, however, only selects
one of the final offers offered by the parties.
3. The Induction of Superordinate Goals:
We have mentioned several times how people frequently split the world
into two opposing camps: us and them. Both of these highly potent
tendencies —to emphasize how one’s own group differs from others and to
denigrate outsiders —are as prevalent in organizations as they are in other
contexts. They appear to play a key role in a lot of disputes across
different divisions, work groups, and departments. Superordinate goals
that link the interests of the two parties togethe r can be introduced to
resolve this. The fundamental tenet of this strategy is that communication,
coordination, and agreement obstacles may be decreased by getting all
sides of a disagreement to concentrate on and work toward shared goals.
The likelihood of collaboration rather than confrontation is thereby
increased.
4. Escalate Intervention:
The escalate intervention technique aims to escalate current conflicts in
order to resolve them and accomplish a number of related objectives. This
tactic’s justific ation is as follows: Things come to a head when a quarrel
becomes more intense. Clarification of the fundamental reasons for
friction or disagreement increases the drive to look for practical,
integrative solutions. Conflicts then emerge into the open and may be
addressed to the satisfaction of all parties concerned, as opposed to
festering below the surface. As a result, there is a lot of pressure to find a
solution, which might have various advantages.
12.6 SUMMARY Conflict is defined as an argument betwe en two or more people or
organisations in which one side seeks to advance its own goals or point of
view at the expense of the others. Conflict among people is inevitable
because of the different attitudes, values, and ambitions that each person
has. Becau se of this, management is more focused on controlling and
managing conflict for the sake of the company and its members than on
completely eliminating it. Conflicts are struggles that can occur when
there is a direct difference of opinion or interest, so i t’s critical to know
how to handle and settle them. Conflict between employees can arise in
the workplace in a variety of situations, and when it happens, it is crucial
to address the issue before it worsens. Conflict can sometimes be
beneficial whereas it can also hamper the growth of the oganisation.
Conflicts need to be managed carefully by various ways which includes munotes.in

Page 155

155 Conflict Resolution avoiding the conflict on a whole and also by using various effective
techniques mentioned above.
12.7 QUESTIONS 1. Explain the concept of conflict and elaborate on its aspects.
2. Explain various methods of conflict resolution
12.3 REFERENCES  https://avenuemail.in/the -founding -story -of-tata-steel-jamshedpur/
 https://qz.com/india/16660 32/how -indian -pharma -giant -cipla -made -
aids-drugs -affordable
 Bhattacharya SK. History of development of oral rehydration therapy.
Indian J Public Health. 1994 Apr -Jun;38(2):39 -43. PMID: 7530695.
 https://knowledge.wharton.upenn.edu/article/former -president -apj-
abdul -kalam -a-leader -should -know -how-to-manage -failure/
 van Knippenberg, D. (2020). Meaning -based leadership.
Organizational Psychology Review, 10(1), 6 -28.
 https://in.indeed.com/career -advice/career -development/leadership -
roles
 https://www.snhu.edu/abo ut-us/newsroom/business/qualities -of-a-
good -leader
 https://businessleadershiptoday.com/what -are-the-7-leadership -traits/
Qualities
 https://www.indiatoday.in/india/east/story/dilip -mahalanabis -ors-oral-
rehydration -solution -diarrhoea -cholera -168545 -2013 -06-29 ORS
 Bhattacharya SK. History of development of oral rehydration therapy.
Indian J Public Health. 1994 Apr -Jun;38(2):39 -43. PMID: 7530695.
 https://www.collinsdictionary.com/d ictionary/english/leadership

***** munotes.in

Page 156

Faculty of Humanities
TYBA
(Choice Based Credit System, CBCS) Semester V and Semester VI Question Paper Pattern for T.Y.B.A
(CBCS) applicable to all the papers from Paper IV to Paper IX.
As per University rules and guidelines With Effect From 2018 -2019 (Time: 3 Hours)

Note: 1. Attempt all questions
2. All questions carry equal marks
(Total = 100 marks)
Q.1 (Based on Module I) (20 marks)
a.
or
b.
Q.2 (Based on Module II) (20 marks)
a.
or
b.
Q.3 (Based on Module III) (20 marks)
a.
or
b.
Q.4 (Based on Module IV) (20 marks)
a.
or
b.
Q.5 Attempt any two short notes. (Based on Module I, II, III and IV)
(20 marks)
a.
b.
c.
d.
***** munotes.in