1. ORGANIZATIONAL BEHAVIOR Ace Institute of Management M-B-A-e Term IV, Spring Trimester 2011 Module 3: The Group Module 3: Organizational Behaviour & Leadership – Ace Institute of Management PowerPoint Compilation by Course Moderator Satish Jung Shahi

2. © 2003 Prentice Hall Inc. All rights reserved Work Stress and its Management

3. © 2003 Prentice Hall Inc. All rights reserved Work Stress and its Management (cont’d)  Defined as “a perceived threat – real or imagined - to one’s mind, body, spirit or emotion”.  Stress is caused by the physical demands of the body or by environmental and social situations. These causes of the stress state are termed stressors.  A little stress is useful in helping us adapt which is called as ‘Eustress’. But, too much stress becomes ‘Distress’. What acts to produce distress varies greatly from person to person.  Frustration and the conflicts which cause frustration are also major stressors.

4. © 2003 Prentice Hall Inc. All rights reserved Work Stress and its Management (cont’d) You know you are stressed when:  You undergo frequent mood swings.  You feel anxious most of the time about work, deadlines, office, home, etc.  You develop a rash or other skin problems when you are anxious.  You are constantly tired, have poor concentration and memory.  Your sleeping and eating patterns change drastically: to very little or very much.

5. © 2003 Prentice Hall Inc. All rights reserved Potential Sources of Stress A)Environmental Factors. –Economic uncertainties of the business cycle. –Political uncertainties of political systems. –Technological uncertainties of technical innovations. –Terrorism in threats to physical safety and security.

6. © 2003 Prentice Hall Inc. All rights reserved Potential Sources of Stress (cont’d) B)Organizational Factors. –Task demands related to the job. –Role demands of functioning in an organization. –Interpersonal demands created by other employees. –Organizational structure (rules and regulations). –Organizational leadership (managerial style). –Organization’s life stage (growth, stability, or decline).

7. © 2003 Prentice Hall Inc. All rights reserved Potential Sources of Stress (cont’d) C)Individual Factors. –Family and personal relationships. –Economic problems from exceeding earning capacity. –Personality problems arising for basic disposition. D)Individual Differences. –Perceptual variations of how reality will affect the individual’s future. –Greater job experience moderates stress effects. –Social support buffers job stress. –Internal locus of control lowers perceived job stress. –Strong feelings of self-efficacy reduce reactions to job stress.

8. © 2003 Prentice Hall Inc. All rights reserved Consequences of Stress –Forgetfulness regarding appointments & dates, etc. –Excessive daydreaming about “getting away from it all”. –Sudden outbursts of temper or hostility. –Irritable and boredom. –Unable to concentrate. –Decision making becomes difficult. –Anxious and nervousness. –Nightmares & depression. –Helplessness & confusion. –Suspiciousness & negative attitude/thoughts. –Loneliness.leadership (managerial style). High Levels of Stress Physiological Symptoms Behavioral Symptoms Psychological Symptoms –Hypertension. –Heart disease. –Migraine & Ulcers. –Asthmatic conditions. –Chronic backaches. –Allergies and skin disorders. –More frequent infections. –Sexual dysfunctions. –Stomach distress and dizziness. –Fatigue and weakness. –Sweating and insomnia. –Muscle tension. –Impulsive behavior and Inappropriate crying –Aggressive & blaming. –Overeating. –Lack of initiative. –Accident prone. –Nervous laughing. –Inflexible. –Drugs & alcohol.

9. © 2003 Prentice Hall Inc. All rights reserved A Model of Stress E X H I B I T 19-10

10. © 2003 Prentice Hall Inc. All rights reserved Inverted-U Relationship between Stress and Job Performance E X H I B I T 19-11 Organizational consequences: - Performance declines. - Withdrawal. - Low productivity. - Anger/frustration. - Work related injuries. - Lack of concentration.

11. © 2003 Prentice Hall Inc. All rights reserved Managing Stress: Individual Approaches

12. © 2003 Prentice Hall Inc. All rights reserved Managing Stress: Organizational Approaches Organizational Approaches: –Improved personnel selection and job placement. –Training. –Use of realistic goal setting. –Redesigning of jobs. –Increased employee involvement. –Improved organizational communication. –Offering employee sabbaticals. –Establishment of corporate wellness programs.

13. © 2003 Prentice Hall Inc. All rights reserved Reminder: Group Project Work Group Project Work, Presentations. The six pre-allotted groups should undertake a field assessment of an organization in which one of their members are working and analyze organizational situations & dynamics in respect to good practices of organizational behavior. The final group project work will carry total 10 marks to your final grading.

14. © 2003 Prentice Hall Inc. All rights reserved Case 3: “A day in the life of Kunal Basu” Read the case study and answer the questions provided… Case 3 carries total six marks and will be included among the total seven Case Studies to be graded this semester.

15. ORGANIZATIONAL BEHAVIOR Ace Institute of Management M-B-A-e Term IV, Spring Trimester 2011 Module 3: The Group Module 3: Organizational Behaviour & Leadership – Ace Institute of Management PowerPoint Compilation by Course Moderator Satish Jung Shahi

16. © 2003 Prentice Hall Inc. All rights reserved Transitions in Conflict Thought Causes of conflict: Poor communication Lack of openness Failure to respond to employee needs Causes of conflict: Poor communication Lack of openness Failure to respond to employee needs Year 1930s – 1940s

17. © 2003 Prentice Hall Inc. All rights reserved Transitions in Conflict Thought (cont’d) Year 1940s – mid 1970s

18. © 2003 Prentice Hall Inc. All rights reserved Functional versus Dysfunctional Conflict

19. © 2003 Prentice Hall Inc. All rights reserved Types of Conflict

20. © 2003 Prentice Hall Inc. All rights reserved The Conflict Process E X H I B I T 14-1

21. © 2003 Prentice Hall Inc. All rights reserved Stage I: Potential Opposition or Incompatibility  Communication –Semantic difficulties, misunderstandings, and “noise”  Structure –Size and specialization of jobs –Jurisdictional clarity/ambiguity –Member/goal incompatibility –Leadership styles (close or participative) –Reward systems (win-lose) –Dependence/interdependence of groups  Personal Variables –Differing individual value systems –Personality types

22. © 2003 Prentice Hall Inc. All rights reserved Stage II: Cognition and Personalization Positive Feelings Negative Emotions Conflict Definition

23. © 2003 Prentice Hall Inc. All rights reserved Stage III: Intentions Cooperativeness: Attempting to satisfy the other party’s concerns. Assertiveness: Attempting to satisfy one’s own concerns. Cooperativeness: Attempting to satisfy the other party’s concerns. Assertiveness: Attempting to satisfy one’s own concerns.

24. © 2003 Prentice Hall Inc. All rights reserved Stage III: Intentions (cont’d)

25. © 2003 Prentice Hall Inc. All rights reserved Stage III: Intentions (cont’d)

26. © 2003 Prentice Hall Inc. All rights reserved Dimensions of Conflict-Handling Intentions E X H I B I T 14-2

27. © 2003 Prentice Hall Inc. All rights reserved Stage IV: Behavior

28. © 2003 Prentice Hall Inc. All rights reserved Stage IV: Conflict Resolution Techniques Problem solving Superordinate goals Expansion of resources Avoidance Smoothing Compromise Authoritative command Altering the human variable Altering the structural variables Problem solving Superordinate goals Expansion of resources Avoidance Smoothing Compromise Authoritative command Altering the human variable Altering the structural variables

29. © 2003 Prentice Hall Inc. All rights reserved Stage IV: Conflict Stimulation Techniques Communication Bringing in outsiders Restructuring the organization Appointing a devil’s advocate Communication Bringing in outsiders Restructuring the organization Appointing a devil’s advocate

30. © 2003 Prentice Hall Inc. All rights reserved Conflict-Intensity Continuum E X H I B I T 14-3

31. © 2003 Prentice Hall Inc. All rights reserved Stage V: Outcomes  Functional Outcomes from Conflict –Increased group performance –Improved quality of decisions –Stimulation of creativity and innovation –Encouragement of interest and curiosity –Provision of a medium for problem-solving –Creation of an environment for self-evaluation and change  Creating Functional Conflict –Reward dissent and punish conflict avoiders

32. © 2003 Prentice Hall Inc. All rights reserved Stage V: Outcomes (cont’d)  Dysfunctional Outcomes from Conflict –Development of discontent –Reduced group effectiveness –Retarded communication –Reduced group cohesiveness –Infighting among group members overcomes group goals

33. © 2003 Prentice Hall Inc. All rights reserved Negotiation

34. © 2003 Prentice Hall Inc. All rights reserved Bargaining Strategies

35. © 2003 Prentice Hall Inc. All rights reserved Distributive versus Integrative Bargaining E X H I B I T 14-5

36. © 2003 Prentice Hall Inc. All rights reserved The Negotiation Process E X H I B I T 14-7

37. © 2003 Prentice Hall Inc. All rights reserved Issues in Negotiation  The Role of Personality Traits in Negotiation –Traits do not appear to have a significantly direct effect on the outcomes of either bargaining or negotiating processes.  Gender Differences in Negotiations –Women negotiate no differently from men, although men apparently negotiate slightly better outcomes. –Men and women with similar power bases use the same negotiating styles. –Women’s attitudes toward negotiation and their success as negotiators are less favorable than men’s.

38. © 2003 Prentice Hall Inc. All rights reserved Third-Party Negotiations

39. © 2003 Prentice Hall Inc. All rights reserved Third-Party Negotiations (cont’d)

40. © 2003 Prentice Hall Inc. All rights reserved Why U.S. Managers Might Have Trouble in Cross- Cultural Negotiations E X H I B I T 14-8

41. © 2003 Prentice Hall Inc. All rights reserved Exercise 5: “Conflict and Negotiation” Phase 1, The entire class is divided in Group A and Group B; Group A is Mr. Nathan while Group B is Mr. Chitnas. Phase 2, Groups A and B will take up positions. Phase 3, Groups A and B will be given separate sheets to study only for five minutes and they will be taken back. Phase 4, Groups A and B will start negotiations. Allotted time: 15 minutes. Phase 5, Moderator to prepare board, sub-group names allotted. Phase 11, Class Discussion and instant grading. Exercise 5 carries total six marks and will be included among the total seven Case Studies to be graded this semester.

42. © 2003 Prentice Hall Inc. All rights reserved Exercise 5: “Conflict and Negotiation” (cont’d) Observe the following points during your negotiation process: 1.How did the negotiations begin? 2.Who came up with the solution? 3.Who was more powerful and stronger? 4.Who got the better deal? 5.Did you introduce yourselves? 6.Did you tell the other party your problem? 7.Did you manage time? 8.How did you conclude the negotiations? 9.How many melons went to whom? 10.Had the negotiators done their homework properly? The End