O r g a n i s a t i o n Organisation Theory T Organisation Theory h e o r y and Behaviour a and Behaviour n d B e h a v i o u r P . K . S a x e n a ISBN 978-93-91162-68-9 9 789391 162689 P.K. Saxena M.R.P. ` 699.00 An ISO 9001:2015 Company UOT-9882-699-ORGAN THEO BEHAVIOUR-SAX ORGANISATION THEORY AND BEHAVIOUR Author P.K. Saxena UNIVERSITY SCIENCE PRESS (An Imprint of Laxmi Publications Pvt. Ltd.) An ISO 9001:2015 Company BENGALURU ● CHENNAI ● GUWAHATI ● HYDERABAD ● JALANDHAR KOCHI ● KOLKATA ● LUCKNOW ● MUMBAI ● RANCHI NEW DELHI ORGANISATION THEORY AND BEHAVIOUR Copyright © by Laxmi Publications (P) Ltd. All rights reserved including those of translation into other languages. In accordance with the Copyright (Amendment) Act, 2012, no part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise. 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CONTENTS 1 ORGANISATIONAL THEORIES AND BEHAVIOUR 1–62 1.1 Introduction 1 1.2 Definition 2 1.3 OB: Nature and Scope 3 1.4 Importance of OB 5 1.5 Limitations of OB 6 1.6 Disciplines Contributing to OB 6 1.7 Models of OB 7 1.8 Classical Theory 9 1.9 Behavioural Theory 17 1.10 Quantitative Approach 26 1.11 Systems Approach 27 1.12 Contingency (Situational) Approach 31 1.13 Modern Management Thought 34 1.14 Individual Behaviour 35 1.15 Models of Man 38 1.16 Personality 41 1.17 The Big Five Models of Personality 44 1.18 Different Approaches to Personality 45 1.19 Personality and Self-Concept 49 1.20 Theories of Personality 51 1.21 Importance of Matching Personalities and Jobs 55 1.22 Aptitude, Abilities and Skills 56 1.23 Emotional Intelligence (EI) 57 1.24 Summary 58 1.25 Review Exercises 60 2 GROUP DECISION-MAKING AND COMMUNICATION 63–120 2.1 Introduction 63 2.2 Characteristics of Decision-making 64 2.3 Types of Decisions 65 2.4 The Decision-making Process: Three Models 68 2.5 The Classical Model of Decision-making 68 2.6 Administrative Decision-making: Bounded Rationality Approach 73 2.7 Intuitive Decision-making 75 2.8 Decision-making Conditions 76 2.9 Group Decision-making 78 2.10 Creativity 79 2.11 Lateral Thinking 82 2.12 The Creative Process 84 2.13 Conceptual Blocks to Creativity 85 2.14 Conceptual Block Bursting 88 2.15 Innovation 93 2.16 Nature of Communication 95 2.17 Importance of Communication 96 2.18 The Process of Communication 97 2.19 Channels of Communication 98 2.20 Communication Media or Methods 101 2.21 Barriers to Communication 105 2.22 Ten Commandments of Good Communication 108 2.23 Interpersonal Style: The Johari Window 109 2.24 Transactional Analysis 111 2.25 Summary 117 2.26 Review Exercises 119 3 MOTIVATION 121–141 3.1 Introduction 121 3.2 Importance of Motivation 122 3.3 The Process of Motivation 123 3.4 Theories of Motivation: Maslow’s Need Hierarchy Theory 124 3.5 Herzberg’s Two-Factor Theory 128 3.6 Comparison between Maslow and Herzberg Models 130 3.7 McGregor’s Theory X and Theory Y 132 3.8 William Ouchi’s Theory Z 135 3.9 Summary 140 3.10 Review Exercises 141 4. LEADERSHIP, POWER AND CONFLICT 142–193 I.Leadership 4.1 Introduction 142 4.2 Importance of Leadership 145 4.3 Leadership Styles 146 4.4 Transformational and Transactional Leaders 150 4.5 Continuum of Leader Behaviour 153 4.6 Likert’s System—4 Models of Management 154 4.7 Theories of Leadership 155 II.Power 4.8 Introduction 168 4.9 Impression Management 178 III.Conflict 4.10 Nature of Conflict 181 4.11 Conflict Due to frustration 182 4.12 Role Conflict and Ambiguity 183 4.13 Summary 190 4.14 Review Exercises 191 5. ORGANISATIONAL CULTURE, ORGANISATIONAL DEVELOPMENT AND STRESS MANAGEMENT 194–254 5.1 Introduction 195 5.2 Strong vs. Weak Cultures 198 5.3 How Employees Learn Culture? 200 5.4 Stories 201 5.5 Rites, Ceremonies or Rituals 202 5.6 Symbols 203 5.7 Language 204 5.8 Values 204 5.9 Assumptions 205 5.10 Practices 205 5.11 Types of Cultures 206 5.12 Creating and Sustaining Culture 207 5.13 Socialisation 209 5.14 Changing Organisational Structure 211 5.15 Ethical Behaviour and Influence of the Leader 212 5.16 Building a Positive Organisational Culture 213 5.17 Workplace Spirituality and Organisational Culture 215 5.18 Organisation Development 216 5.19 Meaning and Definition of Stress 235 5.20 Symptoms of Stress 236 5.21 Measurement of Stress 238 5.22 Causes (Or) Sources of Stress 239 5.23 Consequences of Stress 244 5.24 Stress and Task Performance 245 5.25 Managing Stress (How to Manage or Cope With Stress?) 246 5.26 Formal and Informal Structure 250 5.27 Summary 251 5.28 Review Exercises 252 CASE STUDY 255–267 SYLLABUS Organisational Theory and Behaviour Objective: The objective of the course is to develop a theoretical understanding among students about the structure and behaviour of organisation as it develops over time. The course will also make them capable of realising the competitiveness for firms. Course Outline: 1. Organisational theories and Behaviour: Classical, Neo-classical and Contemporary. Authority, Power, status, formal and informal structure. Flat and Tall structures. Bureaucratisation of organisations. Organisational behaviour—concepts, determinants, models, challenges and opportunities of OB. Transaction cost and organizational individual behaviour, values, attitudes, personality and emotions. Theory X and Theory Y, Chris Argyris behaviour patterns, Perceptual process. 2. Group Decision making and Communication: Concept and nature of decision making process, Individual versus group decision making, Nominal group technique versus group decision making, Nominal group technique and Delphi technique, models of communication, communication effectiveness in organisation. Feedback, TA, Johari Window. 3. Motivation: Need hierarchy, Maslow's Need Hierarchy, Two factor Theory, Contemporary theories of Motivation (ERG, Cognitive evaluation, goal setting, equity) expectancy model. Behaviour modification, Motivation and organisational effectiveness. 4. Leadership, Power and Conflict: Concept and theories, behavioural approach, Situational approach, Leadership effectiveness, Contemporary issues in leadership Power and conflict. Bases of Power, Power tactics, sources of conflict patterns, levels and conflict resolution strategies. 5. Organisational Culture, Organisational Development and Stress Management: Concept and determinants of organisational culture, Organisational Development: concept and intervention techniques. Individual and organisational factors to stress, consequences of stress on individual and organisation, management of stress. 6. Case Studies: Some cases of real business world are required to be discussed.