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Organisational Behaviour by Anamika Mam
Organisational Behaviour by Anamika Mam
MCQ
1: Organisational behaviour is_______
a) A science
b) An art
c) A science as well as an art
d) None of the above
18: The term ‘psychology’ is derived from the word ‘psyche’, which
means ‘soul’ or ‘spirit’_______
a) Latin
b) French
c) Greek
d) None of these
QUESTIONS
Q1: What do you mean by Organisational Behaviour? Discuss its
nature & scope. Why do you study OB?
Ans: . MEANING & DEFINITION
Organizational Behaviour is concerned with the understanding,
prediction and control of human behaviour in organizations. It
focuses on the individuals, the groups and the organization and also
on their interactional relationships. It is the study and application of
knowledge about how people act with organizations.
It is a human tool for human benefit. It applies broadly to the
behaviour of people in all types of organizations. Wherever
organizations are, there is a need to understand organizational
behaviour.
According to Fred Luthans, “Organisational behaviour is directly
concerned with the understanding, production and control of human
behaviour in organisations.”
NATURE
The nature/ characteristics of OB are as given below:
1. OB is a part of general management and not the whole of
management. It represents behavioural approach to management.
2. OB contains a body of theory, research and application associated
with a growing concern for people at the work place. It helps in
understanding human behaviour in work organizations.
3. OB is a human tool for human benefit. It helps in predicting the
behaviour of individuals.
4. OB is inter-disciplinary field of study. It tries to synthesize
knowledge drawn from various behavioural and social sciences such
as Psychology, Sociology, Anthropology, Political-science, Economics,
etc. In fact, OB is an applied behavioural science.
5. OB involves three levels of analysis of behaviour-individual
behaviour, group behaviour and behaviour of the organization itself.
6. OB is an action-oriented and goal-directed discipline. It provides a
rational thinking about people and their behaviour
7. OB is both a science and an art. The systematic knowledge about
human behaviour is a science. The application of behvioural
knowledge and skills clearly leans towardss being an art.
8. OB seeks to fulfil both employees’ needs and organizational
objectives.
SCOPE OF OB
“OB is a field of study that investigates the impact that individuals,
groups, and structure have on behaviour within organizations, for
the purpose of applying such knowledge towards improving an
organisation’s effectiveness”.
The scope of OB involves three levels of behaviour in organizations:
individuals, groups and structure.
1. Individual Behaviour
(i) Personality
(ii) Perception
(iii) Values and Attitudes
(iv) Learning
(v) Motivation
2. Group Behaviour
(i) Work groups and group dynamics
(ii) Dynamics of conflict
(iii) Communciation
(iv) Leadership
(v) Morale
3. Organization: Structure, Process and Application
(i) Organizational Climate
(ii) Organizational Culture
(iii) Organizational Change
(iv) Organizational Effectiveness
(v) Organizational Development
MCQ
1: ________ refers to evaluative statements or judgments
concerning objects, people, or events.
(a) Attitude
(b) Behavior
(c) Appearance
(d) Demeanor
2: The statement, "A person who eats meat and then fights for
animal rights demonstrate double standards" is an evaluative
statement. Such an opinion constitutes the ________ component of
an attitude.
(a) cognitive
(b) affective
(c) reflective
(d) behavioural
5: Janvi feels disheartened because she was not selected for the
campaign exchange program in Ahmedabad. Which component of an
attitude does Janvi's feeling represent?
(a) Cognitive
(b) Affective
(c) Reflective
(d) Behavioral
12: Which of the following actions best represents Kelly's high job
involvement?
(a) Kelly always complains about her work to her colleagues.
(b) Kelly actively takes part in team activities and proactively
takes up additional job responsibilities.
(c) Kelly shares the organization's vision of supporting renewable
energy.
(d) Kelly dislikes the unethical practices followed by her employer.
QUESTIONS
6: Type A people
enjoy leisure time
struggle to achieve more and more in less and less time
never suffer from a sense of time urgency
none of these
13: People with which type of personality trait commonly make poor
decisions because they make them too fast?
type As
self-monitors
type Bs
extroverts
14: Some people think that what happens to them is a result of fate,
chance, luck etc. this is
a) extroversion
b) internal locus of control
c) conscientiousness
d) external locus of control
QUESTIONS
Genes or Experiences?
Many people wonder if one's personality primarily comes down to
nature versus nurture. This is a debate that has waged for quite
some time. Is someone's personality determined more by genes and
heredity or childhood experiences and situations?
The nature vs. nurture debate is one that does not have a clear
winner. Researchers believe there is no way to tell which influences
personality more. They go hand in hand to help develop someone's
personality.
The Developing Personality
Interested in learning more? Why not take an online class in
Personality Development?
As you can see, how one's personality develops is not as simple as
just saying that it is one thing; however, there is one thing that most
researchers seem to agree on: one's childhood lays the foundation
for the personality that one will have as an adult. The genes we are
born with, coupled with the environment we are brought up in and
the situations we live through, all work together. They end up
creating the personality you see as an adult.
Stages of Development
In this article, we will begin to look at the stages of development that
help to create who we are. These stages of development begin when
we are children and play a key role in shaping our personalities.
While there are quite a few theories regarding development, some
of them are more popularly known than others, such as the Freudian
stages of development, as well as Erik Erikson's stages of
development. Here, we will look at both of these different theories.
Sigmund Freud's Stages of Development
You have probably heard of Sigmund Freud. If not, you will likely
hear his name from here on out. His is one of the most widely known
names in the field of psychology. While he is considered to be a great
contributor to the field, he also is quite controversial. He had many
theories that people thought were a little off or even completely
wrong.
All the same, he made contributions to the field of personality
psychology, as well as many other areas in the field, so they are
worth learning about. Some of the theories that he lay out were later
expanded upon by other psychologists, while still others set out to
prove those theories invalid.
Freud's theory of personality development was that it was a result of
a series of stages during childhood. He believed that the
development process involved a pleasure-seeking source that
revolved around psychosexual energy. His stages of development
include:
Oral stage. This is the first stage, which begins at birth. Calling it the
"oral stage" makes sense because it is often oral fixation that soothes
babies; e.g., bottle, nipple, pacifier. The child seeks oral gratification
in order to gain pleasure. During this stage, if a child does not have
its oral needs met, for example, not being fed when crying, he or she
learns to not trust. If children have those needs met, they learn to
trust those around them.
Anal stage. This is the next stage in Freud's theory of child
development. It focuses on learning to control bowel movements
and maintain bladder control. When children gain this ability, they
feel independent and a sense of accomplishment. This stage is
affected by how parents approach potty training. If they punish and
ridicule or are very strict, the child can go on to be anal-retentive and
have such personality traits as being obsessive, rigid, etc. This stage
lasts up until the child is around 3 years old.
Phallic stage. During this stage the focus is on the genitals. This is
when males and females realize there is a difference. Freud believed
that the girls suffered from "penis envy" because they were not
males and that boys were in competition with their fathers to get
their mothers' attention. This stage lasts until the child is around 5.
Latent period. This was believed to be an important period in
personality development, when children focus on relationships with
their peers, finding hobbies they enjoy, and pursuing interests. This
stage takes place from age 6 to about 12.
Genital stage. This final stage starts when the child is about 12 years
old. It is the period that children go through puberty and start
gaining sexual interest. In this stage, the child begins to establish an
interest in other people and, in turn, become well-balanced.
Freud's stages of psychosexual development may seem a little odd at
first, but for a while they were all that people had to go off of. It is
largely where some of the first ideas regarding personality
development originated.
Erik Erikson's Stages of Development
Another popular psychologist in the field was Erik Erikson. His stages
of development focused on trying to provide a theory on social
development. He was influenced by Sigmund Freud. Erikson's stages
of development did not stop when a child turned 18. He believed
that the person continued to develop and have personality outcomes
into adulthood as well.
His stages of development, considered his contribution to personality
development, included:
Infancy. In this stage, the focus is trust versus mistrust. Hope is the
virtue that comes out of this stage, as the child learns to trust or
mistrust his caretakers.
18 months to 3 years. In this autonomy versus shame stage, the
virtues gained are self-control and courage. It is the stage in which
we learn to walk, talk, eat, and gain small motor control, as well as
learning toilet training. This is a vulnerable stage. If parents are
harsh, especially during potty training, it may create a child with low
self-esteem.
3 to 5 years. This is the initiative versus guilt stage, in which children
copy the adults around them. They also take the initiative to play on
their own. Children learn to do some things on their own, such as get
dressed. If children feel guilty about doing these things, they will
have difficulties later.
6 to 12 years. This is the industry versus inferiority stage, and the
virtues gained are method and competence. Children in this stage
compare their own worth to those around them and may feel
inferior if they do not measure up.
12 to 18 years. Identity versus role confusion is the outcome of this
stage, with the virtues being devotion and fidelity. At this stage, peer
relationships are most important and these teens question
themselves. As they are trying to figure out who they are and what
their plans are, they can experience role confusion if their parents
are pushing a different version of themselves than they may feel.
18 to 35 years. The development outcome in this stage is intimacy
and solidarity versus isolation. The basic strengths are love and
affiliation. It is the stage that we seek out a satisfying relationship
and start a family. If someone is not successful in this quest, he or
she may turn to isolation.
35 to 55 years or so. This is the stage that people often feel they
have a "mid-life crisis." It is the generativity versus self-absorption or
stagnation stage. This is the stage in which people often size up all
they have done thus far and measure to see if they feel they have
accomplished enough.
55 or so until death. The basic strength in this stage is wisdom, and
the ego outcome is integrity versus despair. At this stage, if people
look back upon their lives and experiences and are pleased, they feel
integrity, while those who are not feel despair.
As you can see, there are many stages that are believed to go into
personality development. You may even be able to identify some of
your own experiences in these stages.
Need a Little Personality?
By now you have begun to get an idea of what personality is and how
it develops over time. You have delved into some of the influences
that exist, such as heredity, environment, and situations. You have
also started looking at some of the stages of development and have
learned how the things we experience during those stages can
impact your personality.
PERCEPTION
MCQ
1: _____ is the process by which individuals organize and interpret
their sensory impressions.
Perception
Intuition
Analysis
Self-serving bias
Question 2.
According to _____, when observing the behaviour of others,
individuals attempt to determine if the behaviour is internally or
externally caused.
o randomness error
o utilitarianism
o attribution theory
o confirmation bias
Question 3.
If a person is seen as having been forced into a situation, the cause of
his/her behaviour is ____.
o internal
o independent
o external
o random
Question 4.
_____ refers to whether an individual displays different behaviour in
different situations.
o Distinctiveness
o Consistency
o Consensus
o None of the above
Question 5.
When we judge someone on the basis of our perception of the group
to which he or she belongs, we are using the decision making
technique of _____.
o projection
o escalation of commitment
o self-fulfilling prophecy
o stereotyping
Question 6.
The decision maker's interests, values, and similar personal
preferences are important when engaging in the _____ step of the
rational decision-making model.
o bounded rationality
o intrinsic task motivation
o creative thinking skills
o expertise
Question 9.
_____ is a non-conscious process created from distilled experience.
o Rational decision making
o Information modeling
o Satisficing
o Intuitive decision making
Question 10.
_____ bias is the tendency to fixate on initial information.
o Overconfidence
o Anchoring
o Confirmation
o Representative
Question 11.
_____, a dimension of conscientiousness, increases the likelihood of
escalation of commitment.
o Dutifulness
o Achievement-striving
o Utilitarianism
o Self-esteem
Question 12.
Which of the following statements about gender differences in
decision-making is TRUE?
o Men tend to analyze decisions more than women.
o Women are less likely to engage in rumination.
o Gender differences in decision-making are most clear
among young children and older adults.
o Women are more likely to carefully consider problems
and choices.
Question 13.
Which of the following is NOT an organizational constraint?
o performance evaluations
o reward systems
o historical precedents
o culture
Question 14.
Which is not an ethical decision-making criterion?
o justice
o rights
o utilitarianism
o personal benefit
Question 15.
Use of _____ decision criteria would protect whistle-blowers,
individuals who report unethical or illegal practices by their employer
to outsiders.
o justice
o rights
o utilitarianism
o personal benefit
Question16
In stereotyping, the observer's perception of others is influenced by
the observer's own
characteristics rather than by those of the person observed.
TRUE
FALSE
QUESTIONS
Q1: What Is Perception?
Ans: Perception is the sensory experience of the world. It involves
both recognizing environmental stimuli and actions in response to
these stimuli. Through the perceptual process, we gain information
about the properties and elements of the environment that are
critical to our survival. Perception not only creates our experience of
the world around us; it allows us to act within our environment.
What Is Perception?
Perception includes the five senses; touch, sight, sound, smell, and
taste. It also includes what is known as proprioception, a set of
senses involving the ability to detect changes in body positions and
movements. It also involves the cognitive processes required to
process information, such as recognizing the face of a friend or
detecting a familiar scent.
Learn more about how we go from detecting stimuli in the
environment to actually taking action based on that information.
Types of Perception
Some of the main types of perception include:
Vision
Touch
Sound
Taste
Smell
There are also other senses that allow us to perceive things such as
balance, time, body position, acceleration, and the perception of
internal states. Many of these are multimodal and involve more than
one sensory modality. Social perception, or the ability to identify and
use social cues about people and relationships, is another important
type of perception.
How It Works
The perceptual process is a sequence of steps that begins with the
environment and leads to our perception of a stimulus and action in
response to the stimulus. It occurs continuously, but you do not
spend a great deal of time thinking about the actual process that
occurs when you perceive the many stimuli that surround you at any
given moment.
For example, the process of transforming the light that falls on your
retinas into an actual visual image happens unconsciously and
automatically. The subtle changes in pressure against your skin that
allow you to feel objects occur without a single thought.
Perception acts as a filter that allows us to exist and interpret the
world without becoming overwhelmed by the abundance of stimuli. 1
Steps in the Perceptual Process
1. The Environmental Stimulus
2. The Attended Stimulus
3. The Image on the Retina
4. Transduction
5. Neural Processing
6. Perception
7. Recognition
8. Action
Impact of Perception
In order to see the impact of perception, it can be helpful to look at
how the process works. This varies somewhat for every sense. In the
case of visual perception:
1. The environmental stimulus: The world is full of stimuli that
can attract attention through various senses. The
environmental stimulus is everything in the environment that
has the potential to be perceived.
2. The attended stimulus: The attended stimulus is the specific
object in the environment on which attention is focused.
3. The image on the retina: This involves light actually passing
through the cornea and pupil and onto the lens of the eye. The
cornea helps focus the light as it enters the eye, and the iris of
the eye controls the size of the pupils in order to determine
how much light to let in. The cornea and lens act together to
project an inverted image onto the retina.
4. Transduction: The image on the retina is then transformed into
electrical signals in a process known as transduction. This
allows the visual messages to be transmitted to the brain to be
interpreted.
5. Neural processing: The electrical signals then undergo neural
processing. The path followed by a particular signal depends on
what type of signal it is (i.e. an auditory signal or a visual
signal).
6. Perception: In this step of the process, you perceive the
stimulus object in the environment. It is at this point that you
become consciously aware of the stimulus.
1. Recognition: Perception doesn't just involve becoming
consciously aware of the stimuli. It is also necessary for the
brain to categorize and interpret what you are sensing. The
ability to interpret and give meaning to the object is the next
step, known as recognition.
2. Action: The action phase of perception involves some type of
motor activity that occurs in response to the perceived and
recognized stimulus. This might involve a major action, like
running toward a person in distress, or something as subtle as
blinking your eyes in response to a puff of dust blowing through
the air.
The perceptual process allows you to experience the world around
you and interact with it in ways that are both appropriate and
meaningful.
Take a moment to think of all the things you perceive on a daily
basis. At any given moment, you might see familiar objects in your
environment, feel the touch of objects and people against your skin,
smell the aroma of a home-cooked meal, and hear the sound
of music playing in your next-door neighbor's apartment. All of these
things help make up your conscious experience and allow you to
interact with the people and objects around you.
Tips and Tricks
There are some things that you can do that might help you perceive
more in the world around you—or at least focus on the things that
are important.
Pay attention. Perception requires you to attend to the world
around you. This might include anything that can be seen,
touched, tasted, smelled, or heard. It might also involve the
sense of proprioception, such as the movements of the arms
and legs or the change in position of the body in relation to
objects in the environment.
Make meaning of what you perceive. The recognition stage is
an essential part of perception since it allows you to make
sense of the world around you. By placing objects in meaningful
categories, you are able to understand and react appropriately.
Take action. The final step of the perceptual process involves
some sort of action in response to the environmental stimulus.
This could involve a variety of actions, such as turning your
head for a closer look or turning away to look at something
else.
Potential Pitfalls
The perceptual process does not always go smoothly and there are a
number of things that may interfere with perception. Perceptual
disorders are cognitive conditions that are marked by an impaired
ability to perceive objects or concepts.
Some disorders that may affect perception include:
Spatial neglect syndromes, which involve not attending to
stimuli on one side of the body
Prosopagnosia, a disorder that makes it difficult to recognize
faces
Aphantasia, a condition characterized by an inability to visualize
things in your mind
Schizophrenia, which is marked by abnormal perceptions of
reality2
Some of these conditions may be influenced by genetics while others
result from stroke or brain injury
6: What is learning?
a. A change in one’s cognition, action or interaction with others
b. A planned intervention
c. A portfolio of knowledge, skills or attitudes
d. A step-by-step instructional process
11: What did Hull include in his theory of learning to better explain
behaviour?
o Abstract and Concrete goals
o Intervening variables (e.g. drives)
o Reinforcement schedules
o Personal constructs
12: What four parts did Dollard and Miller (1950) suggest comprise
learning habits?
o Drives, Goals, Responses, Reinforcements
o Drives, Cues, Responses, Reinforcements
o Drives, Emotional Responses, Behavioural Responses,
Reinforcements
o Drives, Responses, Goals, Reinforcements
13: Dollard and Miller suggested that when trying to satisfy goals an
individual might face a situation in which they would have to choose
between one goal that is partly desirable and one goal that is partly
undesirable. What type of conflict is this known as?
o Approach-Approach conflict
o Double approach-avoidance conflict
o Approach-avoidance conflict
o Avoidance-Avoidance conflict
14: What concept did Tolman propose to explain how cognitions
from different learning environments may be combined to create
generalised beliefs?
o Cognitive maps
o Associated perception
o Valence
o Strivings
QUESTIONS
Q1: Explain learning.
Ans: Learning can be defined as the permanent change in behavior
due to direct and indirect experience. It means change in behavior,
attitude due to education and training, practice and experience. It is
completed by acquisition of knowledge and skills, which are
relatively permanent.
Nature of Learning
Nature of learning means the characteristic features of learning.
Learning involves change; it may or may not guarantee
improvement. It should be permanent in nature, that is learning is
for lifelong.
The change in behavior is the result of experience, practice and
training. Learning is reflected through behavior.
Factors Affecting Learning
Learning is based upon some key factors that decide what changes
will be caused by this experience. The key elements or the major
factors that affect learning are motivation, practice, environment,
and mental group.
Coming back to these factors let us have a look on these factors −
Motivation − The encouragement, the support one gets to
complete a task, to achieve a goal is known as motivation. It is a
very important aspect of learning as it acts gives us a positive
energy to complete a task. Example − The coach motivated the
players to win the match.
Practice − We all know that ”Practice makes us perfect”. In
order to be a perfectionist or at least complete the task, it is
very important to practice what we have learnt. Example − We
can be a programmer only when we execute the codes we have
written.
Environment − We learn from our surroundings, we learn from
the people around us. They are of two types of environment –
internal and external. Example − A child when at home learns
from the family which is an internal environment, but when
sent to school it is an external environment.
Mental group − It describes our thinking by the group of people
we chose to hang out with. In simple words, we make a group
of those people with whom we connect. It can be for a social
cause where people with the same mentality work in the same
direction. Example − A group of readers, travelers, etc.
These are the main factors that influence what a person learns, these
are the root level for our behavior and everything we do is
connected to what we learn.
How Learning Occurs?
Learning can be understood clearly with the help of some theories
that will explain our behavior. Some of the remarkable theories are −
Classical Conditioning Theory
Operant Conditioning Theory
Social Learning Theory
Cognitive Learning Theory
Classical Conditioning Theory
The classical conditioning occurs when a conditioned stimulus is
coupled with an unconditioned stimulus. Usually, the conditioned
stimulus (CS) is an impartial stimulus like the sound of a tuning fork,
the unconditioned stimulus (US) is biologically effective like the taste
of food and the unconditioned response (UR) to the unconditioned
stimulus is an unlearned reflex response like salivation or sweating.
After this coupling process is repeated (for example, some learning
may already occur after a single coupling), an individual shows a
conditioned response (CR) to the conditioned stimulus, when the
conditioned stimulus is presented alone. The conditioned response is
mostly similar to the unconditioned response, but unlike the
unconditioned response, it must be acquired through experience and
is nearly impermanent.
Operant Conditioning Theory
Operant conditioning theory is also known as instrumental
conditioning. This theory is a learning process in which behavior is
sensitive to, or controlled by its outcomes.
Let’s take an example of a child. A child may learn to open a box to
get the candy inside, or learn to avoid touching a hot stove. In
comparison, the classical conditioning develops a relationship
between a stimulus and a behavior. The example can be further
elaborated as the child may learn to salivate at the sight of candy, or
to tremble at the sight of an angry parent.
In the 20th century, the study of animal learning was commanded by
the analysis of these two sorts of learning, and they are still at the
core of behavior analysis.
Social Learning Theory
The key assumptions of social learning theory are as follows −
Learning is not exactly behavioral, instead it is a cognitive
process that takes place in a social context.
Learning can occur by observing a behavior and by observing
the outcomes of the behavior (known as vicarious
reinforcement).
Learning includes observation, extraction of information from
those observations, and making decisions regarding the
performance of the behavior (known as observational learning
or modeling). Thus, learning can occur beyond an observable
change in behavior.
Reinforcement plays an important role in learning but is not
completely responsible for learning.
The learner is not a passive receiver of information.
Understanding, environment, and behavior all mutually
influence each other.
Cognitive Learning Theory
Cognition defines a person’s ideas, thoughts, knowledge,
interpretation, understanding about himself and environment.
This theory considers learning as the outcome of deliberate thinking
on a problem or situation based upon known facts and responding in
an objective and more oriented manner. It perceives that a person
learns the meaning of various objects and events and also learns the
response depending upon the meaning assigned to the stimuli.
This theory debates that the learner forms a cognitive structure in
memory which stores organized information about the various
events that occurs.
Learning & Organizational Behavior
An individual’s behavior in an organization is directly or indirectly
affected by learning.
Example − Employee skill, manager’s attitude are all learned.
Behavior can be improved by following the listed tips −
Reducing absenteeism by rewarding employees for their fair
attendance.
Improving employee discipline by dealing with employee’s
undesirable behavior, drinking at workplace, stealing, coming
late, etc. by taking appropriate actions like oral reprimands,
written warnings and suspension.
Developing training programs more often so as to grab the
trainees’ attention, provide required motivational properties
etc.
MOTIVATION
MCQ
1: Which of the following is not an important aspect of employee
involvement?
a) Employee motivation
b) Employee empowerment
c) Team and Teamwork
d) Keeping employee morale down
a. DFCAEB
b. BCDEAF
c. DEACFB
d. ABCDEF
13: ___________ is the name given to a philosophy and set of
methods and techniques that stressed the scientific study and
organisation of work at the operational level.
a. Scientific Management
b. Human Relations Model
c. Two factor theory
d. Achievement motivation theory
a. ABCDE
b. ADCBE
c. DCBEA
d. ADCEB
17: What does "E", "R" and "G" stand for in the ERG theory?
a. Export, Risk and Guarantee
b. Exponential, Reliability and Growth
c. Existence, Relatedness and Growth
d. None of the above
19: What are the alternate names used for the expectancy model?
a. Instrumentality theory
b. Path - goal theory
c. Valence - instrumentality - expectancy theory
d. All of the above
QUESTIONS
Q1: Explain motivation in OB.
Ans: Motivation can be described as the internal force that impacts
the direction, intensity, and endurance of a person’s voluntary choice
of behavior. It consists of −
Direction − focused by goals.
Intensity − bulk of effort allocated.
Persistence − amount of time taken for the effort to be
exerted.
Example − A team leader encourages team members to work
efficiently.
Features of Motivation
Motivation is an internal feeling, that is, it defines the psychological
state of a person. It is a continuous process and we should make sure
that it is not disturbed. A person should be encouraged completely.
Motivation consists of three interacting and dependent elements −
Needs − The requirements or deficiency which is created
whenever there is physiological imbalance.
Drives − The various camps or events organized to motivate the
employees and give them new opportunities.
Incentives − Employees need to be rewarded for their nice
work in order to keep them encouraged.
Importance of Motivation
We need to motivate employees because of the following reasons −
Motivated employee are more quality oriented.
Highly motivated employees are more productive as compared
to other employees.
It helps in achieving three behavior dimension of human
resource namely
o Candidates must be attracted not only to join but also
remain in the firm.
o Employees must perform task in a dependable manner.
o Employees should be creative, spontaneous and
innovative at work.
Maslow’s Hierarchy of Needs Theory
This theory was produced in order to answer the question “What
motivates an individual”. Every second need comes to force when
the first need is satisfied completely. Maslow explained the hierarchy
of needs by grouping them into two: deficiency needs and growth
needs.
Physiological Needs
Every individual needs to take care of the basic requirements
required to sustain. These requirements include food to eat, clothing
to wear and shelter to live in. These necessities are relatively
independent of each other but are finite.
Safety Needs
Everybody wants to stay in a protected environment with minimal
danger so that they can have a peaceful life. Safety needs basically
includes protection from physiological danger like accident and
having economic security like bank accounts, health insurance
In an enterprise, it includes job security, salary increment, etc. The
managerial practice to satisfy this involves offering pension scheme,
provident fund, gratuity etc.
Social Needs
We have all heard that man is a social animal, we want to be there
with those people where we are loved and we are accepted as we
are; nobody wants to be judged. This is a common requirement
every human desires.
This theory helps managers to think about encouraging their
employees by identifying employee needs. In short, it presents
motivation as constantly changing force, expressing itself to the
constant need for fulfilment of new and higher levels of needs.
Esteem
Esteem means the typical human desire to be accepted and valued
by others. People often involve in a profession or hobby to gain
recognition, earn fame and respect. According to Maslow, the needs
of humans have strict guidelines - the hierarchies rather than being
sharply separated, are interrelated. This means that esteem and the
consequent levels are not strictly separated but are closely related.
Self-Actualization
Self-actualization means realizing one’s full potential. Maslow
describes this as a desire to complete everything that one can, to
become the most that one can be
Types of Motives
Basically, there are two types of motives : biological and
psychosocial.
Physiological / Biological Motives
Biological motives are also known as physiological motives as they
are guided mostly by the physiological mechanisms of the body. It is
the earliest attempt to understand causes of behaviour. This theory
states that organisms have needs (internal physiological imbalances)
that produce drive, which stimulates behaviour leading to certain
actions towards achieving certain goals, which reduce the drive.
The earliest explanations of motivation relied on the concept of
instinct. The term instinct denotes inborn patterns of behaviour that
are biologically determined rather than learned.
Some of the basic biological needs explained by this approach are
hunger, thirst, and sex, which are essential for the sustenance of the
individual.
Psychosocial motives
Psychosocial motives are complex forms of motives mainly resulting
from the individual's interaction with her/his social environment.
Social motives are mostly learned or acquired. Social groups such as
family, neighbourhood, friends, and relatives do contribute a lot in
acquiring these motives.
Need for Affiliation
• Need for affiliation is aroused when individuals feel threatened or
helpless and also when they are happy.
• People try to get close to other people, to seek their help, and to
become members of their group. Seeking other human beings and
wanting to be close to them both physically and psychologically is
called affiliation. It involves motivation for social contact.
Work Motivation
Katzell and Thompson (1990) define Work Motivation as a "broad
construct pertaining to the conditions and processes that account for
arousal, direction, magnitude, and maintenance of effort in a
person's job". More recently, Robbins (2005) defines work
motivation as "the willingness to exert high levels of effort towards
organisational goals, conditioned by the effort's ability to satisfy
some individual needs".
Classification of Motives at Work:
Primary & Secondary Motives:
Primary motives are unlearned, physiological needs that include
hunger, thirst, sleep, sex, avoidance of pain etc. These needs are
important for survival and are virtually universal, but they vary in
intensity from one person to another.
Secondary motives are learned, social motives that arise as a result
of interaction with other people and develop as people mature.
Included in this category are affiliation - desire to associate with
others; recognition - need for frequent tangible proof that one is
getting ahead; status - need to have a high rank in society etc.
QUESTION
People-oriented leaders
People-oriented leaders focus on behaviors that allow them to meet
the needs of the people they interact with, including supervisors,
employees and clients. They are primarily driven by interpersonal
connection and communication. People-oriented leaders build
relationships with their team members to motivate them to perform
well. This type of leader favors behavior related to:
Encouraging collaboration
Rewarding success
Observing their team's progress
Mentoring team members
Task-oriented leaders
Task-oriented leaders are primarily focused on setting goals and
achieving objectives. Task-oriented leaders thrive in a well-structured
environment and often show authoritative behavior. They are
typically more focused on their team's final results rather than the
day-to-day developmental process. Behaviors that are common for a
task-oriented leader include:
Initiating projects
Organizing processes
Clarifying instructions
Gathering relevant data
Participative leaders
Participative leaders make an effort to include their entire team in
decision-making processes. They prioritize active communication,
collaboration and feedback. Participative leaders know their team's
strengths and weaknesses and assign tasks accordingly. This
leadership style allows every team member's voice to be heard and
considered. Participative leaders are likely to:
Facilitate team meetings
Ask for constructive feedback
Take suggestions for improvement
Delegate tasks to other team members
Status-quo leaders
Status-quo leaders make an effort to prioritize both productivity and
employee satisfaction. They ensure that all tasks are finished on time
while also providing support and encouragement to their team
members. Staus-quo leaders typically meet the needs of their team
without going above or beyond expectations. Some behaviors
associated with status-quo leaders include:
Distributing tasks evenly
Requiring regular progress reports
Enforcing company policies fairly
Responding to feedback neutrally
Indifferent leaders
Indifferent leaders do not prioritize interaction or communication
with their team. They usually oversee progress from a distance and
do not contribute to their team's daily efforts. They are primarily
focused on personal success and advancement. Due to the lack of
cooperation, an indifferent leadership style is widely considered the
most ineffective of the behavioral leadership types. Behaviors typical
for indifferent leaders include:
Avoiding questions
Procrastinating
Self-preserving
Assigning unwanted tasks to others
Dictatorial leaders
Dictatorial leaders often value results more than they do people.
They may pressure their team members to perform well even during
stressful or challenging periods. Dictatorial leaders are often
successful in delivering high-quality results but may experience high-
turnover rates due to employee dissatisfaction and burnout. The
behaviors of a dictatorial leader include:
Setting inflexible deadlines
Disregarding excuses
Ignoring feedback
Achieving short-term goals
Country club leaders
Country club leaders prioritize their team members' happiness and
satisfaction level. They believe that a team that is comfortable and
well-provided for is more likely to be successful. Team members are
likely to show high levels of trust and loyalty when working with
country club leaders. Some country club leaders might sacrifice
productivity in exchange for improving their team's morale or
workplace relationships. Country club leaders' behavior often
involves:
Responding to team member feedback
Focusing on employees' well-being
Defending employees' interests and rights
Supporting the team members' decisions
Sound leaders
Sound leadership is considered the most effective type of behavioral
leadership. However, it is typically difficult to practically implement.
Sound leaders equally prioritize productivity and team morale. They
value their team members, set achievable goals and deliver high-
quality results. They are intrinsically motivated to succeed and find
satisfaction in supporting their team's progress. Sound leaders
exhibit behaviors like:
Encouraging open communication
Allowing employees to work independently
Listening to and implementing feedback
Providing training and continuing education to team members
Opportunistic leaders
Opportunistic leaders pick and choose different behaviors from the
previous styles. They can adjust and adapt their leadership style to fit
a particular situation. They are goal-oriented and will use whatever
methods are necessary to achieve their objectives. For example, they
might adopt a dictatorial persona in the weeks leading up to a major
deadline and then shift to country club leadership afterward to repair
their relationship with their team. The specific behaviors of an
opportunistic leader vary, but may include:
Lack of consistency
Pursuing results regardless of cost
Enforcing their own standards for success
Caring for their team to improve performance
Paternalistic leaders
This leadership style strives to be stern but fair, much like a father
with a child. Paternalistic leaders are goal-oriented but are willing to
be flexible regarding methodology. They frequently set lofty goals
and reward team members that achieve them. They value their team
members' individual skills and offer opportunities for them to
develop professionally. Other behaviors associated with the
paternalistic style include:
Rewarding positive behavior or success
Disciplining failure
Disregarding feedback
Offering leadership opportunities to promising employees
2: What is the term for the set of behaviours and tasks that a
member of the group is expected to perform because he or she is a
member of the group?
a) Group roles
b) Virtual teamwork
c) Synergy
d) Role making
3: Which one of the following is not a characteristic of a team?
a) Minimal and formal knowledge sharing
b) Collective output
c) Individual and collective responsibility
d) Fluid dimension to roles and tasks
20: Belbin’s initial research led him to propose how many team
roles?
o Seven
o Six
o Eight
o Nine
21: The team-role which is likely to demonstrate such positive
qualities as imagination and creativity but may show disregard for
practical details is:
o Specialist
o Team Worker
o Shaper
o Plant
QUESTIONS
Q1: What is Group Dynamics?
Ans: Group dynamics refers to a process of group interaction which
determines how the group functions and how effective it is.
Group dynamics definition
Group dynamics refers to a process of group interaction which
determines how the group functions and how effective it is. It can be
divided into intragroup dynamics (interactions within a group) and
intergroup dynamic (interaction between groups).
Group dynamics research can be very beneficial for businesses as it
gives an insight into what motivates teams, what type of people
make up successful teams and what inhibits team success.
STRESS MANAGEMENT
MCQ
1: Which of the following statements is true
1. In small quantities, stress is good
2. Too much stress is harmful
3. All stress is bad
4. Only ‘1’ & ‘2’ are right
17: What thoughts come to the mind when you’re under negative
stress
1. You think that you can cope with the situation
2. You think that you cannot cope with the situation
3. You think that everything will get fine eventually
4. You think that you will get hep immediately
QUESTIONS
Q1: Explain Stress in organisation.
Ans: Defining Stress
Stress is defined in terms of its physical and physiological effects on a
person, and can be a mental, physical, or emotional strain.
Stress
Stress is defined in terms of how it impacts physical and
psychological health; it includes mental, physical, and emotional
strain. Stress occurs when a demand exceeds an individual’s coping
ability and disrupts his or her psychological equilibrium. Stress occurs
in the workplace when an employee perceives a situation to be too
strenuous to handle, and therefore threatening to his or her well-
being.
Stress at Work
While it is generally agreed that stress occurs at work, views differ on
the importance of worker characteristics versus working conditions
as its primary cause. The differing viewpoints suggest different ways
to prevent stress at work. Different individual characteristics, like
personality and coping skills, can be very important predictors of
whether certain job conditions will result in stress. In other words,
what is stressful for one person may not be a problem for someone
else.
Stress-related disorders encompass a broad array of conditions,
including psychological disorders (e.g., depression, anxiety, post-
traumatic stress disorder) and other types of emotional strain (e.g.,
dissatisfaction, fatigue, tension), maladaptive behaviors (e.g.,
aggression, substance abuse), and cognitive impairment (e.g.,
concentration and memory problems). Job stress is also associated
with various biological reactions that may ultimately lead to
compromised physical health, such as cardiovascular disease.
Categories of Work Stress
Four categories of stressors underline the different causal
circumstances for stress at work:
1. Task Demands – This is the sense of not knowing where a job
will lead you and whether the activities and tasks will change.
This uncertainty causes stress that manifests itself in feelings of
lack of control, concern about career progress, and time
pressures.
2. Role Demands – Role conflict happens when an employee is
exposed to inconsistent or difficult expectations. Examples
include: interole conflict (when there are two or more
expectations or separate roles for one person), intrarole
conflict (varying expectations of one role), person-role conflict
(ethics are challenged), and role ambiguity (confusion about
their experiences in relation to the expectations of others).
3. Interpersonal Demands – Examples include: emotional issues
(abrasive personalities, offensive co-workers), sexual
harassment (directed mostly toward women), and poor
leadership (lack of management experience, poor style, cannot
handle having power).
4. Physical Demands – Many types of work are physically
demanding, including strenuous activity, extreme working
conditions, travel, exposure to hazardous materials, and
working in a tight, loud office.
Causes of Workplace Stress
Work stress is caused by demands and pressure from both within
and outside of the workplace.
Work-Related Stress
Problems caused by stress have become a major concern to both
employers and employees. Symptoms of stress can manifest both
physiologically and psychologically. Work-related stress is typically
caused by demands and pressure from either within or outside of the
workplace; it can be derived from uncertainty over where the job will
take the employee, inconsistent or difficult expectations,
interpersonal issues, or physical demands.
Although the importance of individual differences cannot be ignored,
scientific evidence suggests that certain working conditions are
stressful to most people. Such evidence argues that working
conditions are a key source of job stress and job redesign should be
used as a primary prevention strategy.
Studies of Work-Related Stress
Large-scale surveys of working conditions—including conditions
recognized as risk factors for job stress—were conducted in member
states of the European Union in 1990, 1995, and 2000. Results
showed a time-related trend that suggested an increase in work
intensity. In 1990, the percentage of workers reporting that they
worked at high speeds for at least one-quarter of their working time
was 48%; this increased to 54% in 1995 and 56% in 2000. Similarly,
50% of workers reported that they worked against tight deadlines at
least one-fourth of their working time in 1990; this increased to 56%
in 1995 and 60% in 2000. However, no change was noted in the
period from 1995 to 2000 in the percentage of workers reporting
sufficient time to complete tasks (data was not collected in 1990 for
this category).
A substantial percentage of Americans work very long hours. By one
estimate, more than 26% of men and more than 11% of women
worked 50 hours or more per week (outside of the home) in 2000.
These figures represent a considerable increase over the previous
three decades—especially for women. According to the Department
of Labor, there has been an upward trend in hours worked among
employed women, an increase in work weeks of greater than forty
hours by men, and a considerable increase in combined working
hours among working couples, particularly couples with young
children.
Power and Stress
A person’s status in the workplace can also affect levels of stress.
Stress in the workplace has the potential to affect employees of all
categories, and managers as well as other kinds of workers are
vulnerable to work overload. However, less powerful employees
(those who have less control over their jobs) are more likely to
experience stress than employees with more power. This indicates
that authority is an important factor complicating the work stress
environment.
Economics and Stress
Economic factors that employees are facing in the 21st century have
been linked to increased stress levels as well. Researchers and social
commentators have pointed out that advances in technology and
communications have made companies more efficient and more
productive than ever before. This increase in productivity has
resulted in higher expectations and greater competition, which in
turn place more stress on employees.
The following economic factors can contribute to workplace stress:
Pressure from investors who can quickly withdraw their money
from company stocks
Lack of trade and professional unions in the workplace
Inter-company rivalries caused by global competition
The willingness of companies to swiftly lay off workers to cope
with changing business environments
Social Interactions and Stress
Bullying in the workplace can also contribute to stress. Workplace
bullying can involve threats to an employee’s professional or
personal image or status, deliberate isolation, or giving an employee
excess work.
Another type of workplace bullying is known as “destabilization.”
Destabilization can occur when an employee is not given credit for
their work or is assigned meaningless tasks. In effect, destabilization
can create a hostile work environment for employees, negatively
affecting their work ethic and therefore their contributions to the
organization.
Stress Outside of the Workplace
Non-work demands can create stress both inside and outside of
work. Stress is inherently cumulative, and it can be difficult to
separate our personal and professional stress inducers. Examples of
non-work stress that can be carried into the workplace include:
Home demands: Relationships, children, and family
responsibilities can add stress that is hard to leave behind when
entering the workplace. The Academy
of Management Journal states that this constitutes “an
individual’s lack of personal resources needed to fulfill
commitments, obligations, or requirements.”
Personal demands: Personal demands are brought on by the
person when he or she takes on too many responsibilities,
either inside or outside of work.
Consequences of Workplace Stress
Stress can impact an individual mentally and physically and so can
decrease employee efficiency and job satisfaction.
Symptoms of stress: Stress can manifest as various symptoms
affecting one’s body, mind, behavior, and/or emotions.
Stress
Negative or overwhelming work experiences can cause a person
substantial distress. Burnout, depression, and psychosomatic
disorders are particularly common outcomes of work-related stress.
In general, individual distress manifests in three basic forms:
psychological disorders, medical illnesses, and behavioral problems
Psychological Disorders
Psychosomatic disorders are a type of psychological disorder. They
are physical problems with a psychological cause. For example, a
person who is extremely anxious about public speaking might feel
extremely nauseated or may find themselves unable to speak at all
when faced with the prospect of presenting in front of a group. Since
stress of this type is often difficult to notice, managers would benefit
from carefully monitoring employee behavior for indications of
discomfort or stress.
Medical Illnesses
Physiological reactions to stress can have a long-term impact on
physical health. In fact, stress is one of the leading precursors to
long-term health issues. Backaches, stroke, heart disease, and peptic
ulcers are just a few physical ailments that can arise when a person is
under too much stress.
Behavioral Problems
A person can also exhibit behavioral problems when under stress,
such as aggression, substance abuse, absenteeism, poor decision
making, lack of creativity, or even sabotage. A stressed worker may
neglect their duties, impeding workflows and processes so that the
broader organization slows down and loses time and money.
Managers should keep an eye out for such behaviors as possible
indicators of workplace stress.
Organizational Effects of Stress
Stress in the workplace can be, so to speak, “contagious”—low job
satisfaction is often something employees will discuss with one
another. If stress is not noted and addressed by management early
on, team dynamics can erode, hurting the social and cultural
synergies present in the organization. Ultimately, the aggressive
mentality will be difficult to remedy.
Managers are in a unique position when it comes to workplace
stress. As they are responsible for setting the pace, assigning tasks,
and fostering the social customs that govern the work group,
management must be aware of the repercussions of mismanaging
and inducing stress. Managers should consistently discuss job
satisfaction and professional and personal health with each of their
subordinates one on one.
Reducing Workplace Stress
A combination of organizational change and stress management is a
productive approach to preventing stress at work.
Stress management refers to a wide spectrum of techniques and
therapies that aim to control a person’s levels of stress, especially
chronic stress, to improve everyday functioning.
Preventing Job Stress
If employees are experiencing unhealthy levels of stress, a manager
can bring in an objective outsider, such as a consultant, to suggest a
fresh approach. But there are many ways managers can prevent job
stress in the first place. A combination of organizational change and
stress management is often the most effective approach. Among the
many different techniques managers can use to effectively prevent
employee stress, the main underlying themes are awareness of
possibly stressful elements of the workplace and intervention when
necessary to mitigate any stress that does arise.
Specifically, organizations can prevent employee stress in the
following ways:
Intentional Job Design
Design jobs that provide meaning and stimulation for workers
as well as opportunities for them to use their skills.
Establish work schedules that are compatible with demands
and responsibilities outside the job.
Consider flexible schedules—many organizations allow
telecommuting to reduce the pressure of being a certain place
at a certain time (which enables people to better balance their
personal lives).
Monitor each employee’s workload to ensure it is in line with
their capabilities and resources.
Clear and Open Communication
Teach employees about stress awareness and promote an open
dialogue.
Avoid ambiguity at all costs—clearly define workers’ roles and
responsibilities.
Reduce uncertainty about career development and future
employment prospects.
Positive Workplace Culture
Provide opportunities for social interaction among workers.
Watch for signs of dissatisfaction or bullying and work to
combat workplace discrimination (based on race, gender,
national origin, religion, or language).
Employee Accountability
Give workers opportunities to participate in decisions and
actions that affect their jobs.
Introduce a participative leadership style and involve as many
subordinates as possible in resolving stress-producing
problems.
Stress Prevention Programs
St. Paul Fire and Marine Insurance Company conducted several
studies on the effects of stress prevention programs in a hospital
setting. Program activities included educating employees and
management about workplace stress, changing hospital policies and
procedures to reduce organizational sources of stress, and
establishing of employee assistance programs. In one study, the
frequency of medication errors declined by 50% after prevention
activities were implemented in a 700-bed hospital. In a second study,
there was a 70% reduction in malpractice claims among 22 hospitals
that implemented stress prevention activities. In contrast, there was
no reduction in claims in a matched group of 22 hospitals that did
not implement stress prevention activities.
Q2: Discuss Stress Model.
Ans: Stress Models and Theories
Occupational stress research refers to the study of the negative
impact of organizational environments on employees. In the last half
century, occupational stress has become an important topic within
the field of industrial and organizational psychology, and there is no
reason to believe this will change in the near future. In this entry,
some of the most common models and theories that have guided
occupational stress research are described.
Before providing an overview of the models and theories, it is
important to define these two terms. In science, a model is a replica
or abstraction of some phenomenon or process. A theory is very
similar to a model; the difference, however, is that a theory is more
abstract. Specifically, a theory presents a set of ideas and
propositions about something, whereas a model represents a
detailed description of how those ideas fit together to explain some
process or phenomenon.
In the social and behavioral sciences, models and theories are useful
to both researchers and those who apply research findings in real
settings. For researchers, models and theories help to guide
investigations and serve as benchmarks by which research findings
can be evaluated. Many research studies are either direct tests of
models or theories or use models and theories to set them up. It is
common to evaluate research findings on the basis of whether they
are or are not consistent with some model or theory.
Occupational Stress Models and Theories
Before describing the specific models and theories used in
occupational stress research, the manner in which they are used in
this field of study must be discussed. Like other areas of industrial
and organizational psychology, models and theories are used to
guide occupational stress research and evaluate research findings.
Unlike researchers in other areas, however, few occupational stress
researchers conduct direct model tests (one notable exception will
be described later). The most likely reason is that models and
theories in occupational stress are generic, and thus they are hard to
use to directly derive testable hypotheses.
In describing models and theories, a distinction can be made
between generic frameworks, general models, and testable theories.
Generic frameworks are general theories or theoretical propositions
that guide research but cannot be empirically tested. General models
represent a higher level of specificity than generic frameworks in
that they describe specific steps in the stress process. Though
general models can be tested, they rarely are, either because the
components of such models are so general or because the models
are very complex. Testable theories are the most concrete and, in
that sense, represent the only truly testable hypotheses in the field
of occupational stress.
Generic Frameworks
Most readers who have had any exposure to the field of occupational
stress have heard of Hans Selye, whom many acknowledge as the
“father of stress.” Selye, a medical researcher, was studying sex
hormones when he noticed that the reactions to adverse physical
conditions of the animals he used in his research tended to follow a
similar pattern. From these observations, he came up with the
general adaptation syndrome (GAS) as a response to stressors, and
this has become a common generic framework in stress research.
According to the GAS, when faced with a stressor, an individual will
progress through three stages: alarm, resistance, and exhaustion. In
the alarm stage, the body’s physiological systems react to a stressor
or threat in the environment. This is represented by increased heart
and respiration rates, as well as increased production of adrenal
hormones; in a sense, the body is preparing for battle. In the
resistance stage, the body continues to fight the stressor threat using
the same mechanisms that kicked into action in the alarm stage. In
some cases, the effort that the body puts forth in the resistance
stage is enough to mitigate or at least neutralize the stressor or
threat. If this is not the case, the body can only hold out so long, and
if the stressor persists, it will ultimately reach the third stage,
exhaustion. In this final stage, the mechanisms the body uses to fight
the stressor will wear down and sustain damage; in the animals Selye
observed, the exhaustion stage often ended in death.
Although the GAS cannot be directly tested in organizational settings,
it can be an important lens through which to understand the stress
process. Consider, for example, an employee who works for an
abusive, rude supervisor. When this employee first encounters the
supervisor’s abusive behavior, the stressor is likely to evoke a
number of physiological and psychological reactions, which could be
considered alarms. If the abusive behavior continues over time, the
employee will attempt to cope with the situation in some way,
perhaps by trying to reason with the supervisor, fighting back, or
simply trying to interact with him or her as little as possible—all of
these responses could be considered forms of resistance. Over time,
however, if these efforts do not reduce the abusiveness of the
supervisor, the employee may develop emotional or physical
problems or perhaps leave the organization altogether, which would
represent exhaustion.
Another notion that is prevalent in occupational stress research and
may be considered a generic framework is that of person-
environment fit. The basic idea of person-environment fit, which
certainly could be applied to many areas of psychology, is that
people tend to be happier and adapt better when they fit into the
environment they are placed in. Organizational research—and
occupational stress research in particular—has focused on the skill
and ability requirements of jobs and the skills and abilities possessed
by job incumbents. As one might imagine, the most stressful work
situations are those in which an employee lacks the skills and abilities
to perform his or her job. It may also be problematic if an employee
possesses skills and abilities that are far above those required by the
job that he or she is performing.
Though early work on person-environment fit focused on skills and
abilities, more recent work has expanded the concept to other areas,
such as the fit between organizational culture and an individual’s
personality, the fit between work content and an individual’s
interests, and the fit between specific types of work organization
(e.g., team-based work) and an employee’s skills and preferences. In
general, research has supported the basic notion of person-
environment fit.
General Models
By far, the most popular general model of occupational stress was
developed by researchers at the Institute for Social Research (ISR) at
the University of Michigan during the early 1960s. The ISR model, as
it is known, was developed to serve as a guide for one of the first
large-scale studies of occupational stress funded by the National
Institute for Occupational Safety and Health.
The ISR model proposes that all employees in organizations
encounter objective characteristics of the work environment, such as
the amount of work they are assigned. These objective
characteristics of the work environment are perceived or appraised
by the employee, and based on this appraisal, there is some short-
term reaction that may be psychological, physical, or behavioral in
nature. If an employee exhibits these short-term reactions for a long
period of time, his or her response may ultimately lead to poor
mental or physical health.
In addition to describing the process by which stress leads to mental
and physical health problems, the ISR model proposes that each step
in this process may be affected by characteristics of the individual
(e.g., demographic characteristics, personality traits), as well as the
interpersonal relations within the individual’s work environment.
This aspect of the model has become very important, particularly in
recent years, because much occupational stress research has focused
on how individual differences influence the stress process.
Although occupational stress researchers have not focused on
testing the ISR model, its importance to the field of occupational
stress cannot be overstated. Its focus on the psychological
interpretation of the work environment, in particular, has influenced
the way researchers measure stressors. Specifically, most
occupational stress researchers assess work-related stressors by
using employees’ perceptions of stressful aspects of the work
environment. Unfortunately, however, this focus on perceptions led
researchers to pay too little attention to the objective environment—
a criticism often leveled at occupational stress research conducted by
social and behavioral scientists.
The other general model of occupational stress that has influenced a
great deal of research was described by Terry Beehr and John
Newman in an extensive review published in 1978. According to this
model, characteristics of the individual interact with characteristics
of the work environment through perceptual or appraisal processes.
Based on the precise nature of this interaction, there may be
consequences for both the individual employee and the organization
in which he or she works. For the individual, these consequences
may include health problems, whereas the organizational
consequences may include decreased productivity and increased
health care costs. The final step in the model is represented by
adaptive responses on the part of both the individual and the
organization. This simply represents actions that people and
organizations take to mitigate the effects of stress when they are
recognized. The final component of Beehr and Newman’s model,
which cuts across all other components, is time. This component
simply recognizes that all of the steps in the stress process are
embedded in a temporal framework. For example, in some cases,
stressful conditions at work may occur suddenly—an unexpected
layoff or a violent incident, perhaps. In other cases, stressful
conditions take much more time to manifest themselves— a
relationship with a coworker deteriorates over time, or physical
working conditions gradually deteriorate. Employee and
organizational responses to these conditions will likely be much
different.
Readily Testable Models
Over the past 25 years, the most tested occupational stress model
has been the demands-control model developed by Robert Karasek
during the late 1970s. The basic idea put forth in this model is very
straightforward: The most stressful situations are those in which
employees are subjected to high work demands yet have low control
over decisions concerning their work. Another way to look at the
demands-control model is that demands and control interact in such
a way that job demands are related most strongly to strain when
control is low. Many blue-collar jobs fit this high demand-low control
pattern; that is, employees are expected to do or produce a great
deal, yet have little say in how they do their jobs or how the
organization operates.
Since Karasek proposed the demands-control model in the 1970s,
the model has been modified based on research findings.
Specifically, research has shown that the demands-control
interaction is stronger among employees who lack high levels of
social support from others. Thus, it has become common for
researchers to refer to Karasek’s model as the demands-control-
support, or DCS, model. A small number of empirical studies have
shown that the inter-action is stronger among individuals with high
self-efficacy. Self-efficacy refers to an individual’s belief that he or
she is capable of carrying out some task or course of action;
individuals with low self-efficacy are less likely than their high-self-
efficacy counterparts to derive the benefits of high control. As yet,
however, self-efficacy has not been included as a part of the
demands-control model by most researchers.
Support for the demands-control model has been quite mixed, for a
number of reasons. Perhaps the most important reason is that there
is no agreement as to exactly what constitutes support for the
model. According to Karasek, minimum support for the model is
represented by the additive effects of job demands and control, even
if the interaction between the two is not supported. By this criterion,
the model has received abundant support. Some, however, view the
true test as the interaction between demands and control. If this
criterion is applied, support is much more modest.
The other model that is quite testable—though it has not been
tested as extensively as the demands-control model—is the effort-
reward-imbalance model developed by Johannes Siegrist in
Germany. According to this model, people evaluate their work
situation in terms of the effort they put into it relative to the rewards
they derive. In stressful situations, employees feel as though they are
putting a great deal into their job or doing a great deal for their
organization, yet they feel as though they are not receiving rewards
that are commensurate with these efforts.
A final model proposed relatively recently (1992) is the cybernetic
model developed by Jeff Edwards. Edwards proposed that employees
compare their current work situation with what they desire their
work situation to be. If this comparison results in a negative
discrepancy, or if the current situation is not what the employee
wants it to be, the employee experiences the job as stressful. The
model goes further, however, and describes the process by which
employees attempt to change this negative discrepancy. Although
Edwards’s theory is complex, it is also much better at describing the
stress process in real time than many other stress theories. As yet,
this theory has not been explicitly tested, but in the future, it has a
great deal of potential in occupational stress research
CONFLICT MANAGMENT
MCQ:
1: Most conflicts have their roots in uncertainty, and negotiation is a
way of managing the
A. Resultant Risk
B. Failure
C. Uncertainty
D. Inputs
2: Contracts between a firm and its suppliers, its trade unions, and its
customers are written to govern the settlement of
A. Potential risk
B. Potential Uncertainty
C. Potential Risk
D. Potential Failure
3: Process which begins when one party perceives that the other has
frustrated, or is about to frustrate, some concern of his, is known as
A. Conflict
B. Risk
C. Uncertainty
D. Poor management
21: Meeting one party’s goals is just like promoting other party’s
goals known as:
Promotive Interdependence
Contrient Interdependence
Positive Interdependence
None of the given options
QUESTIONS
Q1: What is Conflict Management?
Ans: Conflict management is the approach and strategies geared
towards achieving a positive outcome and resolution amongst the
parties involved in matters relating to conflicts. These strategies and
approaches are dependent on the type of conflict that exist,
organizations, or institutions involved. It could be a systematic or
unordered method that is task-specific, research-oriented, and
requires proper attention. A conflict could be an outcome of
Workplace Incivility.
Every technique applied to manage conflict is aimed at resolution
with fair judgment, but it's worthy of note that it is not all
approaches to solving disputes that lead to a decision or positive
outcomes.
Some findings have been carried out over the years to identify and
even classified the approaches to managing conflicts. For instance,
Rahim (2002) was able to identify five different management
approaches to combating conflicts. These are;
1. Avoiding
2. Accommodating
3. Compromising
4. Collaborating
5. Competing
I have observed that the more the people involved in any situation or
matter, the more likely conflict arise. This is not far-fetched as we
humans have a different philosophy, culture, educational
background, and conflicting goals. Proper understanding of the five
strategies to conflict management will go a long way to minimize rifts
among members of an organization, business, and institutions.
Let's briefly discuss these five approaches as identified by Rahim
(2002)
1. Avoiding
This is a type of conflict management strategy where there is an
existence of avoidance such that the avoiders ignore the conflict. It is
a conscious effort to delay with the hope that the issue(s) would be
resolved over time. This can assume any sides of the coin in the
sense that, the problem can be solved as time passes or the longer
the time to resolve the issue, the more the conflict escalates. It has
been observed that some with power to pull the dispute will not
want to adopt this strategy, but someone with low esteem and no
capacity will avoid problems hoping that someday he/she will be
capable enough.
2. Accommodation
This kind of conflict management requires that the parties involved
accept the views of one another. Both or one is ready to give the
other party/side what is needed. For instance, in a business
environment where employees are required to dress formal
throughout the working days of the week. An employee can
approach the organization to allow the wearing of casuals on Fridays.
This can cause conflicts between the company and the employee
because that may be a core organizational principle. But the
company can apply an accommodation strategy by allowing the
employees to wear casuals on Fridays. People are happy and feel
among when this strategy is employed.
3. Compromising
This management strategy is such that parties have almost the same
if not equal capacity to pull issues further that will result in conflict.
But both decided to give in by accepting and agreeing to see how
resolution can be established. Most businesses would embrace this
strategy to resolve a dispute when parties observe that there is a risk
at the end, as any of them could lose something of value in matters
that caused the conflict. Contract negotiation, customer service, and
big investors are aspects you will see businesses compromising their
standard to work with the other party.
4. Collaborating
In conflict resolution and management, sometimes because of the
differences in ideology and knowledge that usually cause a rift in
business, parties integrate ideas to find a common ground of
acceptance for everyone involved. Companies can always consult
with employees to formulate policies and work collaboratively during
the decision process on some specific issues in the organization.
5. Competing
This type of conflict management strategy often involves individuals
who are assertive and have the will power to fight till they achieve
their goal and the other losing. For instance, a company might hold
on to this competitive strategy by conflicting and holding on until
they win on issues that will damage the organization reputation
based on an employee trying to defraud the company.
Irrespective of the impacts of all the strategies discussed above, once
there are people from different groups and ideology coming
together, conflict is likely to occur.
This will lead us to discuss the characteristics of conflict as follows;
1. Conflict involves opposition
2. Conflict has come to stay among humans
3. There are processes involved that usually result in conflicts
4. Conflict is not to be avoided
5. Conflict takes different shapes and form
1. Conflict involves opposition
Conflict exists if a party is in disagreement will another (it could be
internal or external) because one does not accept or agree with the
other. Therefore, there is a level of interaction or point of contact for
conflict to take its course.
2. Conflict has come to stay among humans
Since there will always be differences between human based on
incompatibility, the battle has become the usual thing in life for
everyone. There is an adage that says, ‘if you always see two friends
smiling all the time, it shows that they haven't been telling each
other the truth.’ Funnily, conflict is not a problem if attention is given
amongst parties to adopt some of the conflict management
strategies.
3. There are processes involved that usually result in conflicts
Many times it will start with a misunderstanding; one party with a
standpoint wants the other to see from his viewpoint. No company
wants her interest to be jeopardized and treated as a second-level
issue with no dignity.
4. Conflict is not to be avoided
It is worthy of note that no two persons are the same even twins. So,
a dispute will always exist. Once there are two people or more
involved in a matter, because of the differences in self-concept,
educational level, background, organizational training, and a host of
others, conflicts can't be avoided. Nonetheless, this non-avoidance
nature of the battle is useful sometimes as the end goal can make
parties evolve stronger and better.
5. Conflict takes different shapes and form
Battle sometimes can be unidimensional, can be inflicted and
perceptional. Interaction will always occur between an individual and
a group of people, organization, institutions, and these activities
result in interdependence. This comes in various degrees under the
groups involved. Conflict can be similar so, almost the same conflict
management strategy or combinations of approaches can be applied
to achieve resolution or minimize the negative impact.
(a) expert
(b) reward
(c) approval
(d) referent
4: One guideline for implementing a successful empowerment
strategy is that ____________.
(a) upward
(b) lateral
(c) downward
(d) workflow
(a) politics
(b) managerial philosophy
(c) authority
(d) empowerment
14: The pattern of authority, influence, and acceptable managerial
behavior established at the top of the organization is called
______________.
16: For the most part, ______ research emphasises style; whereas
research on ________ focuses on tactics for gaining compliance.
politics; leadership
power; persuasion
leadership; power
communication; politics
17: Person A has ____ power over person B if A can dismiss, suspend,
or demote B, assuming that B values his or her job.
reward
referent
legitimate
coercive
22: _____ occurs when people use whatever influence they can to
taint the facts to support their goals and interests.
politicking
playing hardball
facilitating teamwork
forming coalitions
25: ______ refers to a capacity that "A" has to influence the behavior
of "B" so that "B" does something he or she would not otherwise do.
Dependence
Power
Politics
Scarcity
QUESTIONS
Q1: Difference between leadership and power.
Ans: It’s fair to conclude that an individual can have the ability to
influence, develop and enable without necessarily being the leader
of the team. In many situations it is possible to exert influence
without being in authority. People with power have ability to
influence following and to some extent control the action of others.
If you observe a group of people working together, you will be able
to determine who is the leader of the group.
Power is a person’s ability to control activities of other individuals.
Leadership is the ability to inspire people to follow your instructions
voluntarily and manage the completion of a project without
exercising any form of force. Traditionally, it was believed that power
was derived from leadership. However, in many instances, power
leads to leadership. However, the two are interrelated and can be a
source of confusion between different people who don’t fully
understand the differences. Leadership is dependent on power; a
good leader is he/she who has some form of power.
What is Power?
Power is broadly defined as the ability of an individual to exercise
some form of control over another individual. There is a distinct
relationship between power and influence. Different definitions of
power regard it to be a causal efficacy which either be a change
noticed in the world or a psychological pressure that gives people
reasons to choose one alternative over the other. As a kid, your
parents had significant influence over your actions, and you would
often try to imitate their preferred behavior so as to please them. In
school, the same case applies with teachers, they could easily
influence you to do one thing instead of the other. In these two
cases, both the parents and teachers, have derived authority which
gave them the influence over you.
There are however other sources where power cab be derived from.
Reward power is that which is acquired from the ability to award the
followers or give some form of benefits. Coercive power is that
derived from the ability to enforce punishments or sanctions.
Legitimate power is that derived from an official position of authority
either in an organization or election. Referent power is based solely
on the individuals following. Expert power is acquired from one’s
expertise, knowledge of specialized skills. Integrative power is that
which is derived from the ability to bring people together.
In the scene of politics, power is essential. There are some instances
where novices have managed to inherit extreme power by virtue of
their birth either being the daughter or son of a President, Prime
Minister or the Royal family. Heads of armies have also been able to
take over governments forcefully or by staging coup. Power is often
used by individuals for their own personal benefits just as the saying
goes, ‘Power Corrupts’.
What is Leadership?
The term, ‘leadership’ brings about a bunch of ideas, a political
leader, an explorer leading a team of people through some jungle or
an executive within a company. Other people also broadly define a
leader as someone who basically leads a group of people either in
politics or within religion. What really is the right definition of a
leader? A leader is an effective individual who creates a vision,
motivates people to work towards achieving the vision, coaches and
builds the team that will pioneer the completion of the vision and
manages the end delivery of the vision.
Just like power there are different types of leadership. In total there
are twelve types, but here we discuss five of the main ones that you
have probably come across. Autocratic leadership is that which the
leader maintains full authority and responsibility over his/her
subjects. Democratic leadership is where the subordinates are
involved in decision making. Transformational leadership is that
leadership type that is centered around initiating some form of
change. Monarchy leadership is that which authority is passed on
from one person to another as a birth right. Laissez-faire is the
leadership type where subordinates are given all the necessary tools
to manage and complete projects on their own.
Differences Between Leadership and Power
1. Definition
Power is the ability of an individual to exercise some form of control
over another individual. On the other hand, leadership is the ability
to create a vision, motivate people to work towards achieving the
vision, coaching and building the team that will pioneer the
completion of the vision and managing the end delivery of the vision.
2. Credibility
Credibility is needed in leadership but not a necessity in power.
3. Source
Power is derived form a position of authority. Leadership is a
personal attribute.
4. Nature
Power is generally controlling and forceful in making followers follow
commands. Leadership involves inspiring the subordinates to
complete tasks.
5. Dependence
Leadership requires power in order to be effective. However, power
does not depend on leadership. One can have power but not be a
leader. But, all leaders require some form of power in order to
successfully inspire subordinates.
6. Types
The types of power include coercive, legitimate, expert, referent and
reward. The main types of leadership include autocratic, democratic,
transformational, monarchical and laisses-faire.
Power vs. Leadership : Comparison Chart
Q2: Explain Power And Politics Within a Business Organizational.
Ans: Every environment has their own internal system that is
dictated by aspects such as power and politics. These things have as
much control over the functionality of an organizational as the
individual features of organizational behavior. Often, they can shift
how those components develop and affect those in the environment
as well. Their impact-and that of those who control them-can shape
the entire dynamics of an organization more so than any other force.
Power and politics within a business or organization are rather
similar to the traditional political structures of government: authority
is divided throughout the different parts of the system that power is
exerted in.1 There are often different sources of power competing for
control, which isn't necessarily a bad thing until someone decides to
fight dirty. The internal politics of an organization, too, can be
polarized as everyone will most likely relate to one side of an issue
over another no matter how neutral they attempt to remain. All in
all, the organizational power and politics in a business can be a
fascinating and unique thing that can have a serious impact on
organizational behavior.
Power Struggles In Business
Power struggles are a common occurrence in society, not just
business. One person wants something from someone else, yet that
person isn't willing to budge on the issue and just hand it over. In
response, that first person may try to exert their own power and
authority (perceived or actual) to try and persuade the other person
to concede.2 It's a tactic that can work on occasion, but it can make a
situation turn combative and toxic when it isn't successful. It occurs
between co-workers, employees and their supervisors, amongst
management, between different departments, and in board rooms in
businesses across the world.
As normal as they are, power struggles are not an effective way to
get things done in a working environment. They can damage the
climate of the workplace, turning it toxic and stressful even for those
who are not involved. It wastes time that can be better used towards
productivity and often causes the situation to unnecessarily
escalate.3 When a power struggle escalates, it often drags office
politics into the mix and forces people to take a side. Attempts to
avoid taking sides or getting roped in don't always work, and you
may still be bombarded with the conflict even if you are successful in
staying out of the situation.
The ability to stay out of a power struggle is a skill that can give you a
lot of power in business, one that is best used to protect yourself.
Surviving a power struggle is often the goal regardless of what
industry you work in. There's still the aftermath to deal with when
the dust settles, and the effects can hit anyone who happens to be
standing too close. Experts say that if you want to not get involved
with a power struggle, then your best bet is to not acknowledge a
person's position in an argument, but their feelings.4 Make neutral
observations, which can be used supportively should either party
confront you about the situation and your stance in it; i.e. 'This has
got to be so frustrating. I hope you two are able to work things out'
or something similar that validates the emotional component of the
situation.
Power Types and What They Do
Power in a business environment typically translates into authority
and influence, and can manifest differently. People develop
professional power differently, based on factors like their job, their
position within the company, and the industry that the business is in.
Typically, there are five types of power present in business:
Legitimate-Based on a person's position in the structural
hierarchy of a business. Legitimate power can only be given and
wielded through, well, legitimate means, e.g. the person earned their
position.5 Those with legitimate power often can only exert their
power on those below them in the hierarchy, not above. A CEO, for
example, has legitimate power over a general manager in the same
company, but the general manager doesn't have legitimate power
over the CEO.
Coercive-Coercive power can be rather harsh and easily
prone to abuse due to the abilities associated with it. Those with
coercive power influence others through punishments, sanctions,
and threats. It works well to ensure that employee behavior follows
policy and can be used to deal with violations. Most disciplinary
actions are carried out via coercive power, including firing or
terminating someone from the business.
Reward-The opposite of coercive power, this type influences
other with rewards like promotions and bonuses.6 It generates an
incentive to motivate someone to do something and acts as a
positive reinforcement for behavior. Performance reviews and their
administrators tend to how some level of reward power in a
business.
Referent-Those who are revered or admired in a business
have referent power. Typically, leaders gain this power when their
actions prompt a positive rapport and trust between them and the
employees under them. Most of the time, it will be evident if a
person has referent power by talking to their employees; positive
praise, loyalty, and other responses are good indicators.
Interested in learning more? Why not take an online class in
Organizational Behavior in Business?
Expert-Those who have expert status tend to have power
over those who do not. It is gained through experience, skill, and
knowledge in regards to certain topics or areas of interest.7 A person
doesn't necessarily have to have expert status to have expert power;
those with more knowledge of a subject can have expert power over
those who know less. Those with expert power tend to have it
reflected in their reputation and their credibility on things.
The Politics of Business
As mentioned before, there is a political side to business. In a sense,
it follows the same science behind the politics found in
government.8 There is leadership that guides the group as a whole
and a company philosophy and ethical code that everyone is
expected to adhere to. The set up and style of the business'
leadership determines how power is divided and what role, if any,
the employees have in how the business is run. The people in that
business tend to have their own agenda in all of this, shaped by their
behavior and viewpoints, that surpasses the agenda of the
organization as a whole-which is the entire premise behind
organizational or business poltics.9
Politics tend to come up in a business when someone begins to act
on their own interest without regard to others in the company. It
commonly comes into play during times of conflict and power
struggles, as people with conflicting agendas will typically be the
ones at odds. Most experts and leaders state that business politics
are more harmful than good; they're inherently selfish.10 Business
politics bring down productivity amongst employees through
distraction, hurts motivation and morale, increases stress levels, and
warps the environment of the business.
Business politics do the worst damage when business leaders act
according to their personal agendas. Those in positions of power will
exert their authority based on their politics, which can lead to abuse.
This may also encourage conflict between opposing political sides.
Leaders higher up in the business' hierarchy, like CEOs, can stir-up
politics in their company regardless of if they are political
themselves.11 Changes to policies and leadership, as well as changes
to the components of organizational behavior, can help reduce the
power of office politics-or bolster them, if not done correctly.
Warning Signs Of Abuse In Positions Of Power
When politics and power come into play in a business, there is the
chance that someone will abuse the authority that they have. This
can be anyone who has some degree of power, no matter where
they sit in the business' hierarchy or how long they've held that
position. When a person abuses their power or goes on a power trip,
it can have damaging consequences for everyone. Depending on how
it starts and the person's position, it may not be immediately evident
that they are abusing their power. Here are some of the warning
signs common to abuse of power in the workplace:
Unfair Disciplinary Measures-In some cases, a person will
abuse their power in order to bully those they have seniority over. As
a result, they may inflict unfair disciplinary measures on others for
mistakes. These tend to be punishments that do not fit the error that
was made-if one was actually made, that is. A person could
intentionally be picking on a specific employee or unleashing their
power on everyone during a power trip.
Superiority-Superiority develops when someone is put into a
higher position and their ego takes over. It's usually done to rub the
fact that they now have power into the face of someone who doesn't
and boost their ego. They may humiliate those who are positioned
below them and make people do things simply because they can
make them do that.12 One of the worst parts of this is that they will
most likely try to convince you that you have no power over them
and you can't do nothing. (Spoiler alert: You can.)
"My Way or the Highway" Behavior-If a person has an
authoritarian streak in their personality, it's quite likely that it will
come out in full force once they get an inkling of power over
someone else. They will try to get their way through ultimatums and
bullying, and will most likely micromanage everyone to make sure no
one strays.13 There's no leeway for anyone (except for them) and
even the tiniest deviation is enough to warrant their wrath.
Sometimes this is a tactic that is used to prevent anyone else from
looking professionally better than them and to block any kind of
advancement or growth.14
Disrespecting Boundaries and Abilities-Usually tied in as a
kind of discrimination or harassment (depending on how it's being
carried out), disrespecting employees personal boundaries and
abilities tends to generate a very hostile work environment. It's
usually done to get something else from a person-such as in sexual
harassment-or to demean or humiliate them. This can be especially
problematic because instances can extend outside of the business
and drag down morale within it.
Aggression-Everyone has lost their temper with another
person before but it's not supposed to be a normal occurrence.
Abuse in the workplace isn't always going to manifest solely as a
byproduct of authority. Verbal and physical abuse has occurred in
the professional world in varying degrees. Violence can be an intense
way to intimidate people and it's one of the most common causes of
injury and death in the workplace.15
How To Deal with Workplace Abuse
No one wants abuses of power to happen in their business. It's
harmful to employees, the customers, productivity, and the business'
overall environment. Preventing it doesn't always work, as people
cannot be fully controlled. If there are abuses of power occurring in
your business, here are a few things that can be done:
Confront The Person-Best done carefully and in private,
confronting the person who is on a power trip or abusing their power
is one way of getting them to stop.16 Someone who has only recently
started to become abusive due to their power may not realize that
what they are doing is hurtful and unprofessional; power can be an
intoxicating force. It should be noted that this can backfire and
should definitely not be done without assistance in severe cases.
Document It-Keep track of instances of abuse by
documenting it. Write down notes on what happened, when, and
where, and take it home with you; never leave it at work where an
abusive person may find it and use it as a motive to attack.17 Check
what laws and policies there are regarding recording someone
without their permission. If there is physical evidence, take photos
and keep them with your notes. All of this can be presented to the
business' human resources department and used against an abuser.
Human Resources-Here's that spoiler alert from earlier. A
business' human resources department is designed to handle any
instance of misbehavior amongst the staff at work. They will have the
resources to deal with the situation and will know what can or
cannot be done. Submitting a complaint-with copies of what you've
documented-can at least bring abusive behavior to the company's
attention. In severe cases where outside intervention like police or
legal action is needed, the HR department will usually need to get
involved in the situation on behalf of the business.
13: Which of the following is not a force in the Porter Five Forces
model?
a. Buyers
b. Suppliers
c. Complementary products
d. Industry rivalry
14: Key controllable factors in global marketing are ______.
a. Government policy and legislation
b. social and technical changes
c. marketing activities and plans
d. all of the above.
QUESTIONS
Q1: Discuss major trends in International business.
Ans: As the economy grows slowly at home, your business may have
to look at selling internationally to remain profitable. Before
examining foreign markets, you have to be aware of the major trends
in international business so you can take advantage of those that
might favor your company. International markets are evolving
rapidly, and you can take advantage of the changing environment to
create a niche for your company.
Growing Emerging Markets
Developing countries will see the highest economic growth as they
come closer to the standards of living of the developed world. If you
want your business to grow rapidly, consider selling into one of these
emerging markets. Language, financial stability, economic system
and local cultural factors can influence which markets you should
favor.
Population and Demographic Shifts
The population of the industrialized world is aging while many
developing countries still have very youthful populations. Businesses
catering to well-off pensioners can profit from a focus on developed
countries, while those targeting young families, mothers and children
can look in Latin America, Africa and the Far East for growth.
Speed of Innovation
The pace of innovation is increasing as many new companies develop
new products and improved versions of traditional items. Western
companies no longer can expect to be automatically at the forefront
of technical development, and this trend will intensify as more
businesses in developing countries acquire the expertise to innovate
successfully.
More Informed Buyers
More intense and more rapid communications allow customers
everywhere to purchase products made anywhere around the globe
and to access information about what to buy. As pricing and quality
information become available across all markets, businesses will lose
pricing power, especially the power to set different prices in different
markets.
Increased Business Competition
As more businesses enter international markets, Western companies
will see increased competition. Because companies based in
developing markets often have lower labor costs, the challenge for
Western firms is to keep ahead with faster and more effective
innovation as well as a high degree of automation.
Slower Economic Growth
The motor of rapid growth has been the Western economies and the
largest of the emerging markets, such as China and Brazil. Western
economies are stagnating, and emerging market growth has slowed,
so economic growth over the next several years will be slower.
International businesses must plan for profitability in the face of
more slowly growing demand.
Emergence of Clean Technology
Environmental factors are already a major influence in the West and
will become more so worldwide. Businesses must take into account
the environmental impact of their normal operations. They can try to
market environmentally friendly technologies internationally. The
advantage of this market is that it is expected to grow more rapidly
than the overall economy.
1. Personal Challenges
When working in a multicultural environment or with another
culture, the personal challenges can be many.
2. Cognitive Challenges
Working with people from different cultures can present
considerable cognitive challenges.
Cognitive challenges relate to how we think, process information
and essentially how we view the world.
When we come up against a foreign culture, this can cause us real
problems, especially if we fail to recognise differences and adapt.
Two simple examples of this are the concepts
of time and relationships.
Some cultures place a high value on time, others don’t. If you come
from a culture in which ‘time is money’ and you find yourself working
with a culture in which it isn’t, your cultural norms can result in you
making bad decisions.
Time conscious professionals can see lateness in other cultures as
unprofessional or even disrespectful. They don’t appreciate that in
the culture they are working with punctuality is a much more
nuanced concept.
In reverse, those cultures that are a lot more flexible with their
approach to time can see the time conscious professionals as rigid
and materialistic, which ties in with the value given to relationships.
In some cultures, it's relationships before business whereas in
others, business first. Usually those cultures that are time conscious
are less relationship orientated.
Now, what happens when you have a professional from a very task
orientated culture visit a client or colleague from a very relationship
focused culture?
Yes, they can see each other’s priorities incorrectly, i.e. the
relationship-driven culture sees the task-driven culture as
impersonal, unfriendly and disinterested, whereas the task-driven
culture is seen as not taking business serious enough, spending too
much time on small talk and breaching the line between personal
and professional matters.
The results is a sort of cognitive dissonance – both sides are looking
at one another through their own Cultural Lens which means they
are interpreting behaviours incorrectly and attributing erroneous
meaning to them.
This can happen at many levels, whether we are talking about a
general approach to business or in the more specific areas such as
how we communicate, manage hierarchy and conduct negotiations.