Motivation: The term ‘motivation’ can be traced to the Latin word, ‘movere’ which means “to

move”
The process by which activities are started, directed, and continued so that physical or psychological
needs or wants are met. Motivation is an important factor which encourages persons to give their best
performance and help in reaching enterprise goals. A strong positive motivation will enable the
increased output of employees but a negative motivation will reduce their performance.
there are three basic assumptions pervasive in work motivation theory:
(1) motivation involves choice,
(2) motivation involves allocation of resources, and
(3) motivation is a multilevel process

DEFINITIONS
Motivation is one of the processes that account for an individual’s intensity, direction, and persistence
of effort toward attaining a goal. – Robbins & Judge (2009)

Nature of motivation.
 Motivation in an inner feeling which energizes a person to work more.
 The emotions or desires of a person prompt him for doing a particular work.
 These are unsatisfied needs of a person which disturb his equilibrium.
 A person moves to fulfil his unsatisfied needs by conditioning his energies.

Types of Motivation

Importance of motivation at the workplace

 1. High Performance: Motivation acts as a stimulant for improving the performance of
employees. Motivated employees put in their maximum efforts which enhances productivity
and also reduces production costs.
2. Reduced Turnover: Motivated employees are highly likely to stick to their current jobs and
perform towards attaining organizational goals despite obstacles. Unmotivated employees, on
the other hand, will leave their job at the first opportunity they get. Hence, employee turnover
can be reduced by enhancing employee motivation.
3. Low Absenteeism: Those workers who are motivated in their jobs will show more
enthusiasm and excitement towards working and hence report regularly to their work. This
reduces absenteeism among workers.
4. Better Organizational Image: Those enterprises which offer better financial and non-
financial incentives to their employees have a better organizational image. These
organizations are considered as better places to work and hence, attract more talented people.
A better qualified workforce in itself is a big achievement for the organization.
5. Readiness for change: Changes in external environment of the organizations place certain
demands on the internal organizational climate which calls for making crucial changes for the
betterment of organization. A motivated workforce would be more accepting and adaptable to
these changes as compared to unmotivated employees.

The process of motivation

The basic process of motivation proceeds through three phases. The essence of the entire process can
be stated as – needs set up drives aimed at incentives. Thus the process of motivation consists of
following three inter- connected elements:

Needs: Needs arise from physical or psychological deficiencies. When there is an imbalance in these
states, a need is created, prompting action to fulfill it. This is the basis of motivation.
Drives: Drives or motives emerge to address these needs. They can be physical or psychological and
push the organism towards an incentive to alleviate the deficiency.
Incentives: Incentives are factors that reduce a drive by fulfilling a need, restoring balance.
Achieving incentives ends the drive, completing the motivational process
Content Theories of Motivation:

1. Focus: Content theories of motivation focus on the specific factors or needs that drive individuals'
behaviour and motivation.

2. Essence: These theories explore what motivates individuals by identifying internal or external
factors that lead to behavior.

3. Examples: Some well-known content theories include Maslow's Hierarchy of Needs, Herzberg's
Two-Factor Theory, and Alderfer's ERG Theory.

4. Factors: Content theories typically propose a set of universal needs or factors that motivate
individuals, such as physiological needs, social needs, or the need for achievement.

5. Hierarchical: These theories often present a hierarchical structure, suggesting that individuals
progress through different levels or stages of needs.

6. Content theory emphasizes the reasons for the frequent changes in human needs.

Process Theories of Motivation:

1. Focus: Process theories of motivation focus on how internal cognitive processes and decision-
making influence an individual's motivation.

2. Essence: These theories examine the thought processes, perceptions, and evaluations that occur
within individuals, leading to their motivation and behavior.

3. Examples: Some prominent process theories include Expectancy Theory, Equity Theory, and Goal-
Setting Theory.

4. Cognitive Factors: Process theories emphasize cognitive factors, such as expectations, beliefs,
perceptions of fairness, and goal setting, as determinants of motivation.
5. Dynamics: These theories often consider the dynamic nature of motivation, highlighting how
individuals assess and interpret their environment and make decisions based on the expected
outcomes of their actions.

6. Process theories focus on the psychological processes which affect motivation, with regard to the
expectations, goals and perception of equity

CONTENT THEORIES

Hierarchy of Needs Theory

The hierarchy of needs theory of motivation was proposed by Abraham Maslow. This theory
organized human needs in the form of a hierarchy ranging from lower-order needs to the higher-order
needs. Lower-order needs are satisfied externally while the higher-order needs are satisfied internally.
This theory suggested that human needs work to motivate people to satisfy them. Once a need is
satisfied, it no longer motivates. Also, the lower needs are activated before the higher-order needs.
Maslow identified following five types of needs:

i. Physiological Needs: It is the most basic level in the hierarchy of needs and, therefore, gets
activated first. These are basic physical needs like hunger, thirst, sex, etc.

ii. Safety and Security Needs: It forms the second level in the hierarchy. Once the physical needs are
satisfied, the safety and security needs activate. The theory identifies physical as well as emotional
security needs.

iii. Love & Belongingness Needs: These needs fall at the intermediate level and include the needs of
an individual to affiliate and belong with others. Hence, these needs are also called the ‘social needs’.

iv. Esteem Needs: The esteem needs represent the higher-order needs of an individual. This level
includes needs for power, achievement, and status.

v. Self-Actualization: This is the highest level in the hierarchy of human needs and is attained when
an individual has realized all his/her potential.

Two-factor Theory of Motivation

The two-factor theory of motivation, also known as the Motivation-Hygiene Theory, was developed
by Frederick Herzberg in 1959. Herzberg found that people's positive feelings about their job were
linked to the actual content of the job itself, while negative feelings were associated with peripheral
aspects of the job context. In essence, Herzberg identified two types of factors: motivators and
hygiene factors. Motivators, which lead to job satisfaction, are related to the content of the job, while
hygiene factors, which can cause job dissatisfaction, are related to the context of the job.

Hygiene Factors are those elements of the work environment, such as company policies,
administration, supervision, salary, and work conditions, which, when adequate, prevent employees
from feeling dissatisfied with their jobs. These factors are akin to Maslow's lower-order needs and are
extrinsic in nature, not directly related to the content of the work itself.

Motivators are intrinsic aspects of the job that directly contribute to satisfaction and motivation in
employees. Examples of motivators include opportunities for achievement, recognition, advancement,
and the inherent characteristics of the work itself. These factors correspond to Maslow's higher-order
needs and are closely tied to the content of the job.

Process theories-
1. Equity theory

Equity Theory/Organizational Justice: The Equity Theory, proposed by J. Stacy Adams, revolves
around the concept of fairness in social exchanges. According to this theory, individuals evaluate the
fairness of their treatment in comparison to others' treatment in similar situations. Equity theory
suggests that people strive to maintain a balance between the inputs (effort, time, skills) they
contribute to a situation and the outcomes (rewards, recognition) they receive from it.
When individuals perceive an inequity—where their inputs and outcomes are not proportional to
those of others—it leads to feelings of distress and a sense of injustice. These feelings can manifest in
various ways, such as reduced motivation, decreased job satisfaction, or attempts to restore equity
through altering inputs or outcomes.
The Equity Theory identifies three primary categories of responses to perceived inequity:
 Change in Inputs: Individuals may adjust the level of effort or resources they contribute to
achieve a sense of fairness. For example, if an employee believes they are putting in more
effort than their peers for the same rewards, they may reduce their effort to align with
perceived fairness.
 Change in Outcomes: Alternatively, individuals may seek to alter the rewards or outcomes
they receive to restore equity. This could involve negotiating for higher compensation or
seeking additional benefits.
 Change in Comparison: Individuals may also change the reference points they use for
comparison. For instance, if they feel they are receiving less than others within their
organization, they may compare themselves to individuals outside their organization to justify
the inequity.
 2. Goal theory
Goal-Setting Theory: In the late 1960s, Edwin Locke proposed that setting goals significantly drives
work motivation. Goals provide direction and clarity, outlining what needs to be accomplished and
the level of effort required. Research strongly supports the idea that specific goals enhance
performance, with difficult goals often yielding better results than easier ones, provided they are
accepted.
Feedback plays a crucial role in improving performance by helping individuals track their progress
and adjust their efforts. Self-generated feedback, where individuals monitor their own progress, tends
to be more impactful than externally provided feedback.
Difficult goals motivate individuals for several reasons: they capture attention, inspire increased effort
due to the challenge, foster persistence, and stimulate the development of effective strategies.
While involving individuals in goal-setting can be effective, sometimes goals assigned by superiors
lead to better outcomes. Nonetheless, participation can enhance goal acceptance and commitment,
highlighting the importance of clear goal communication in its absence.

Goal commitment, task types, and cultural differences all affect how goals impact performance.
Commitment to goals is strengthened when they are public, internally driven, and self-set.

Goals work best for straightforward tasks and group projects, but cultural backgrounds also influence
their effectiveness. In some cultures, moderate, achievable goals are more motivating, while others
respond better to assigned goals, especially in hierarchical societies.

Setting too strict goals can stifle creativity and exhaust individuals emotionally. Despite these risks,
goals remain a powerful tool for shaping behavior and performance, especially when they align with
organizational objectives.

Management by Objectives (MBO) involves setting clear goals for each department and individual
in an organization. It breaks down big goals into smaller ones, involves everyone in decision-making,
sets specific deadlines, and provides feedback on performance. However, MBO may fail if goals are
unrealistic or not supported by top management.

Motivation: Contemporary Theories

Contemporary theories of work motivation build upon and address the shortcomings of early
motivation theories, which lacked empirical support and failed to explain motivation within evolving
organizational contexts fully. Unlike their predecessors, contemporary theories have been rigorously
validated and offer a current framework for understanding employee motivation. These theories are
labeled as "contemporary" not because of their recent development, but because they provide a
modern explanation of motivation in the workplace. Below, we'll delve into some significant
contemporary theories of motivation.

1. Self-Efficacy Theory: Self-efficacy, also known as social cognitive theory or social learning
theory, refers to an individual's belief in their capability to perform a task successfully. Higher
self-efficacy corresponds to greater confidence in one's ability to achieve success. In
challenging situations, individuals with low self-efficacy are more likely to reduce their effort
or give up, while those with high self-efficacy are inclined to exert more effort to overcome
the challenge.
Self-efficacy initiates a positive feedback loop. In which people with hight self-efficacy feel
more confident and involved more in task which enhances their performance further. Also
boost their confidence more. If a high self-efficacy person got a negative feed-back he/she
will try to work more on himself/herself but a low self-efficacy person might just give up.
 Managers can help employees feel more confident by using both goal-setting and self-
efficacy theories. Setting tough goals shows managers believe in their team's abilities, which
boosts their confidence. This motivates employees to set even higher goals for themselves,
leading to improved confidence and performance, both at work and in life.
The researcher who developed self-efficacy theory, Albert Bandura, proposes four ways self-efficacy
can be increased:
1. Enactive Mastery: Gaining confidence through successful experiences.
2. Vicarious Modelling: Building self-efficacy by observing others.
3. Verbal Persuasion: Increasing self-efficacy through positive encouragement.
4. Arousal: The emotional state that influences self-efficacy.

Self-Determination Theory: Self-Determination Theory, proposed by Deci & Ryan (2002), states
that people prefer to feel they have control over their actions, so anything that makes a previously
enjoyed task feel more like an obligation, than a freely chosen activity will undermine motivation.

It is the degree to which we feel our actions are autonomous and have the freedom to do what we like.
Autonomous behaviour comes from one’s sense of self, unlike controlled behaviour that comes from
outside pressure.

SDT identifies 3 needs that, if satisfied, allow optimal function and growth and lead to self
actualization. Deci and Ryan, also suggest that when people experience these three needs, they
become self- determined and are intrinsically motivated to pursue the things that interest them.

Needs required for growth and self-actualization:

1. Autonomy: This is the need to experience freedom of self and not being controlled by external
forces.

2. Competence: it is about feeling capable and skilled at handling challenges, which encourages
curiosity and exploration. When people are intrinsically motivated, they do things because they enjoy
them, not for external rewards.

3.Relatedness: This refers to the need to relate to others by forming close meaningful bonds with
others.

Any social situation that provides opportunities for individuals to satisfy the needs for competence,
autonomy, and relatedness are the key to enhancing that individual’s motivation. Much research on
self-determination theory in OB has focused on cognitive evaluation theory, which hypothesizes that
extrinsic rewards will reduce intrinsic interest in a task. For ex When people are paid for work, it feels
less like something they want to do and more like something they have to do.

A study by Chirkov (2009) found that Chinese Canadians reported lower levels of autonomy
compared to European Canadians. However, for both groups, feeling more autonomous was linked to
higher well-being. This shows that despite cultural differences in how autonomy is viewed, having
more freedom of choice improves well-being for everyone.

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UNIT 3: Basic Approaches to Leadership: Trait Theories; Behavioural Theories;

Contingency Theories; Inspirational approaches: Transformational-transactional leadership;
Contemporary approaches: Authentic leadership, Indian Approaches To Leadership,
Challenges to leadership in contemporary times.
Understanding Leadership

Leadership is one of the most observed and least understood phenomena on earth (Burns,
1978). The study of leadership can be traced back to the ancient times of Egyptian and Greek
philosophers. However, the understanding and importance of this topic started to emerge in
early twentieth century but still a major socio-scientific approach was lacking. During 1940s
and 1950s, studies were conducted to understand leadership. Leadership is the process
whereby one individual influences other group members toward the attainment of defined
group or organizational goals (Greenberg, 2008).

There are three key characteristics which help in better understanding the general nature of
the leadership process.
 Noncoercive Influence in Leadership: Leadership involves noncoercive influence,
meaning it changes the actions or attitudes of group members or subordinates without
force. Unlike coercive techniques, where individuals have no choice but to comply,
noncoercive influence allows recipients to accept or reject the influence. True
leadership relies on noncoercive methods; those who use force are considered
dictators. Leaders inspire others through respect, admiration, and positive
relationships, rather than through physical coercion or threats. Subordinates follow
leaders not just because of their formal authority, but because they genuinely respect,
like, or admire them.
 Leadership influence is goal-directed: Leadership involves using influence to
achieve specific group or organizational goals. Leaders focus on changing the actions
or attitudes of their subordinates that directly relate to these goals. They are less
concerned with altering actions or attitudes that do not contribute to achieving the
desired outcomes. In essence, leaders direct their influence toward achieving clear,
specific objectives.
 Leadership requires followers: Leadership is inherently reciprocal, as it emphasizes
the central role of influence. While leaders influence their subordinates in various
ways, they are also influenced by their subordinates. This mutual influence suggests
that leadership exists only in relation to followers. Leaders and followers interact
dynamically, shaping each other's actions and attitudes in pursuit of common goals.

Authentic leadership is a theory that has gained significant traction in both academic and
practitioner circles. It emphasizes the importance of leaders' values and ethics, focusing on
those who "remain true to themselves." Authentic leaders are characterized by:
 Self-Awareness: They understand their own values, strengths, and limitations and can
acknowledge when they are wrong.
 Honesty and Sincerity: They are genuine in their interactions and do not pretend to
be someone they are not. They have a strong sense of right and wrong. (Walumbwa,
Avolio, Gardner, Wernsing, & Peterson, 2008).
Authentic leadership offers several benefits:
  Improved Employee Performance: By understanding and meeting employees'
needs, authentic leaders can enhance employee performance.
 Higher-Quality Relationships: Authentic leaders develop strong, positive
relationships with their employees, contributing to better performance. (Wang et al.
2014),
 Employee Resilience and Optimism: Authentic leaders help employees become
more resilient, optimistic, hopeful about the future, and confident. This leads to
desirable behaviors such as increased creativity. (Rego et al. 2012).
However, some aspects of authentic leadership theory have recently been challenged as
paradoxical.

Contingency theories: A leader’s effectiveness is contingent upon how his or her leadership
style matches the situation. The leader must find out what kind of leadership style and situation he or
she thrives in. “There is no one best style of leadership” (Fiedler’s contingency model). A leader is
effective when his or her style of leadership fits with the situation.

Fiedler’s Contingency Model of Leadership Effectiveness

The Fiedler contingency model proposes that effective group performance depends on the proper
match between the leadership style and the situation that gives leader a control.

Identifying leadership style:

Least Preferred Co-worker (LPC) questionnaire: identify that style by measuring whether a person is
task or relationship-oriented. The LPC questionnaire asks respondents to think of a coworker they
least enjoyed working with and rate that person on a scale of 1 to 8 for each of 16 sets of contrasting
adjectives. Relationship Oriented: If the respondent describes the person in favorable terms (a high
LPC score). Task-Oriented: If the respondent describes the person in un-favorable terms (a low LPC
score). Fiedler assumes an individual’s leadership style is fixed. This means if a situation requires a
task-oriented leader and the person in the leadership position is relationship oriented, either the
situation has to be modified or the leader has to be replaced.

Defining the Situation: Fiedler has identified three contingency or situational dimensions:

1. Leader–member relations is the degree of confidence, trust, and respect members have in their
leader.

2. Task structure is the degree to which the job assignments are procedurized (that is, structured or
unstructured).

3. Position power is the degree of influence a leader has over power variables such as hiring, firing,
discipline, promotions, and salary increases.

Matching Leaders and Situations: In highly favorable or unfavorable situations, leaders should
adopt a high task-oriented style. The favorability of a situation depends on how many variables work
in the leader’s favor. In contrast, relationship-oriented leaders are more effective in moderately
favorable situations. For example, in a natural disaster like a flood or fire, a leader usually does not
know their subordinates personally. In such cases, a task-oriented leader, who focuses on
 accomplishing tasks quickly, is the most successful. A relationship-oriented approach would be
ineffective due to the need for rapid decision-making. Goleman (1998) confirmed that leaders who
use relationship-based styles positively influence the organizational climate and achieve significantly
better financial results compared to those who do not.

Criticism:

1. The model is too simple.

2. The LPC scale is a better measure of the personality rather of leadership style.

Path-Goal Theory Path-Goal:

Martin Evans and Robert House developed the Path-Goal Theory in 1970-71, building on concepts
from the Ohio State Studies and the Expectancy Theory of Motivation. The base behind Path-Goal
theory is that effective leaders clarify the path to help their followers to move forward from their
current position towards achieving the work goals. In this process, the leader reduces the roadblock
that occurs in the path of the followers, and makes their journey easier. Thus, the essence of path goal
theory is that, it is the leader‟s job to provide the followers with the information, support and other
resources, necessary for them to achieve their goals.

A leader's primary focus is to understand their subordinates' needs and set challenging organizational
goals that align with their personal satisfaction. The leadership styles that are available under this
approach are:

· Directive leadership: Provide guidance about what should be done and how to do it, scheduling work,
and maintaining standards of performance.

· Supportive leadership: Show concern for the needs of the employees, leader is friendly and
approachable.

· Participative leadership: Consult employees and seriously consider their ideas when making decisions.

·Achievement-oriented leadership: Encourage employees to perform at their highest level by setting

challenging goals, emphasising excellence, and demonstrating confidence in employee abilities.

The following is a description of employee characteristics:

· Subordinate’s Locus of control:

· Whether it is internal or external

· Task ability

· Authoritarianism

· Need for achievement

· Experiences

· Need for clarity

 Environmental factors:

· Task structure: structured vs. unstructured

· Workgroup: conflict vs. consensus

· Authority system: bureaucratic

Transactional leadership (bartering system)

The concept of transactional leadership was first introduced by sociologist Max Weber in the early
20th century, later James MacGregor Burns and Bernard Bass, who expanded this concept in the
1970s and 1980s.

In transactional leadership, motivation is derived from an arrangement whereby employees are

rewarded for accomplishing goals set for them or tasks assigned to them. Transactional leadership
theories assume that the desires of the leader and the desires of the follower are not the same. Because
of this, the leader must provide some form of extrinsic motivation for the follower. Without this, the
follower will not want to do what the leader desires. Transactional leadership is sometimes called
bartering as it is based on an exchange of services (from a teacher, for instance) for various kinds of
rewards (such as salary).

This system is extremely common and familiar. One basic form is when sales representatives are paid
on commission or given performance bonuses for the numbers of sales they complete. The leader or
organisation wants the employee to secure sales, so the motivation is provided in the form of money.
This transaction of performance for compensation satisfies the wants of both parties , leader and
follower.

Transformational leadership

The idea of transformational leadership was developed by James McGregor BuRNs in 1978. He
founded the theory of transformational leadership extending the transactional leadership by extending
leadership theory to higher levels of reinforcement for goal attainment.

Transformational leadership is a process that changes and transforms individuals by focusing on

values, ethical standards, and long-term goals. It involves understanding followers' motives, satisfying
their needs, and treating them as whole human beings. Instead of providing external motivation,
transformational leadership aims to align followers' desires with the leader's vision. When followers
adopt the leader's vision and desires, they become more motivated to pursue shared goals. This
leadership style creates a deeper, more meaningful relationship between leader and follower, beyond
mere exchanges.

The Burns model of transformational leadership, described several types of transformational leaders
and they are as follows:

 Intellectuals: Leaders who focus on ideas and values that go beyond practical needs, aiming
for a higher moral purpose and vision capable of transforming society.
 Reformers: Leaders of reform movements that need large-scale participation to succeed.
They work to improve specific aspects of society to achieve higher moral standards.
  Revolutionaries: Leaders who may demand the "ultimate sacrifice" from followers for the
greater good. Unlike reformers who improve parts of society, revolutionaries seek to change
the entire society.
 Charismatic (Hero): The ultimate form of a transformational leader, viewed as a hero by
followers due to their extraordinary influence and vision.

Challenges To Leadership In Contemporary Times

External Challenges for Leaders: In any organization, leaders inevitably face external challenges
such as funding shortages, community opposition, and internal conflicts. Effective leaders are
measured by their ability to handle these crises smoothly, ensuring that most external issues go
unnoticed by others. Here are some key external challenges leaders face:

Lack of Communication:

 Clear communication is crucial for leaders but often challenging. Disconnections arise
due to different authority levels and unclear communication of goals and expectations.
 Poor communication can lead to a lack of focus, low morale, and loss of credibility.
 Two-way conversations help leaders and teams understand each other’s expectations and
maintain alignment.

Change Management:

 Leaders must guide their organization through changes, which involves both accepting
the change themselves and convincing employees to embrace it.
 A strategic approach to change management is essential for smooth transitions.

Lack of Employee Mental Health Management:

 Addressing mental health issues like depression and anxiety is a significant leadership
challenge.
 Leaders need to promote mental health awareness and create opportunities for employees
to manage stress, improving morale and productivity.

Conflicts:

 Effective conflict resolution skills are vital. Unresolved conflicts can harm workplace
culture and productivity.
 Leaders often exacerbate conflicts by mishandling them, making resolution more
challenging.

Lack of Growth Opportunities:

 Leaders should focus on their team’s professional growth alongside organizational

development.
 Understanding each employee’s talents and abilities helps leaders provide the right
opportunities for professional advancement.

Internal Challenges for Leaders

 Leadership offers the chance to showcase our best qualities but also highlights our limitations. Good
leaders often need to overcome these limitations to realize and follow their vision. Common internal
barriers include fear, lack of confidence, insecurity, impatience, intolerance, sensitivity, and the risk
of exhaustion. Acknowledging and overcoming these challenges can transform a mediocre leader into
a great one. Effective leadership involves accepting these traits and working to mitigate their impact.

In the 21st century, leaders face additional challenges due to rapid technological advancements such
as artificial intelligence, drones, nanotechnology, solar energy, biotechnology, 3D printing, and
quantum computing. Leaders must stay informed about these emerging technologies, understand their
implications, and leverage them to benefit their businesses. This awareness helps leaders make
accurate predictions and generate innovative ideas that incorporate future technologies.

By addressing both personal limitations and external technological advancements, leaders can
enhance their effectiveness and ensure their organizations remain competitive and forward-thinking..

___________________________________________________________________________

UNIT 2: Power and Politics meaning of power, classification, contingency model, empowerment,
political implications of power.

POWER AND POLITICS

CONCEPT OF POWER

Max Weber defined power as “the probability that one actor within a social relationship will be in a
position to carry out his own will despite resistance.”

In the words of White and Bednar, “Power is the ability to influence people of things, usually
obtained through the control of important resources.”

Distinctions among Power, Authority, and Influence

The individual who possesses power has the ability to manipulate or change others. Such a definition
of power distinguishes it from authority & influence. Authority legitimatizes & is a source of power.
Authority is the right to manipulate or change others. Power need not be legitimate. Influence is
usually conceived of as being broader in scope than power. It involves the ability to alter other people
in general ways, such as by changing their satisfaction & performance. Influence is more closely
associated with leadership than power is, but both obviously are involved in the leadership process.
Thus, authority is different from power because of its legitimacy & acceptance, & influence is broader
than power, but it is so conceptually close that the two terms can be used interchangeably.

For example, a police officer has authority to ‘stop’ a motorist. The motorist is legally obliged to
comply. Managers are said to possess a ‘right to manage’. Employees are legally obliged to obey the
employer’s instructions provided these are lawful & within the scope of the contract of employment.

Characteristics of Power:

1) Specific: Power is specific in the sense that it may be exercised by some people in some
circumstances. Power may not be exercised by all people in all circumstances.
2) Dependency: The main feature of power is dependency. The greater the dependence of one person
on you, the greater is the amount of power you can exert on him

3) Expand or Contract: Power is elastic. People who are habituated to exercise power, may try to
acquire more power & expand it. In some organisations, due to change in position of a manager in the
organisation, that is, shift from one department to the other may cause contraction in power.

4) Reciprocal Relationship: Power relationships in an organisation are reciprocal in nature. Power exists
due to relationship between two or more persons. It is based on two-way concept of influencing others
& being influenced.

CLASSIFICATION OF POWER

Position Power: Power based on one’s formal position in an organization. For example, there are
certain powers that the president of India has simply because of the office (e.g., signing bills into law,
making treaties, etc.). These remain secured in the position & are available to anyone who holds it.
When the president’s term is up, they transfer to the new office-holder.

There are four bases of position power:

Reward power: Reward power is an individual’s ability to influence others’ behaviour by rewarding
their desirable behaviour. Employees comply with requests & directives because of the authority of
managers to grant rewards in the form of praise, promotions, salary increase, bonuses, & time-off.
Reward power can lead to better performance, but only as long as the employee sees a clear & strong
link between performance & rewards.

Coercive power: Coercive power is an individual’s ability to influence others’ behaviour by means of
punishment for undesirable behaviour. For example, subordinates may comply because they expect to
be punished for failure to respond favourably to managerial directives. Punishment may be major or
minor, depending on the nature of omission or commission.

Legitimate Power: Legitimate power most often refers to a manager’s ability to influence
subordinates’ behaviour because of the manager’ s position in the organisational hierarchy.
Subordinates may respond to such influence because they acknowledge the manager’s legitimate right
to prescribe certain behaviours. Legitimate power is an important organisational concept. Typically, a
manager is empowered to make decisions within a specific area of responsibility, such as quality
control, accounting, human resource, marketing, & so on.

Information Power: Information power refers to the power that individuals have due to their access
to valuable data and knowledge. This type of power is often held by people in high positions who
have access to exclusive information that others do not, such as company performance details and
market trends. This unique access to critical information makes them powerful.

Personal Power: The power that one derives because of one’s individual qualities or characteristics.

There are four basic types:

Rational Persuasion: Individuals who excel at influencing others through strong logical reasoning
and effective communication often gain power. Their ability to persuade others not only helps in
specific situations or issues but also earns them a powerful position within their organizations due to
their effectiveness.

Expert Power: Expert power is a form of personal power a person gains through experience.
Individuals who have superior knowledge, skills, or abilities in a particular area often gain what is
known as expert power. This type of power arises from others' belief in the person's expertise. For
example, musicians follow the directions of a conductor not only because the conductor holds a
formal position of authority (legitimate power) but also because the conductor is recognized as an
expert in music.

Referent Power: Referent power is the ability to influence others because they like or admire you.
For example, subordinates may identify with and want to emulate a manager, giving the manager
referent power. This type of power is typically associated with individuals who have admired
personality traits, charisma, or a good reputation.

Charisma: Some individuals have such powerful and magnetic personalities that they seem to put
others in a kind of trance. These individuals are described as possessing charisma. One significant
benefit of this quality is that it provides them with a substantial boost in personal power, allowing
them to influence and attract others easily.

The Strategic Contingencies Model: Power Through Dependence

Strategic contingencies theory is a theory of intra-organizational power that was proposed in 1971 by
David Hickson, Bob Hinings, C.A. Lee, Rodney Schneck & Johannes Penning. The theory assumes
that sub units or departments within a firm necessarily exert power over one another because the
organizational division of the labour creates strategic contingencies. Control of these contingencies
serves as the basis of intra-organizational power.

A subunit’s power is enhanced when

(1) it can reduce the level of uncertainty experienced by other subunits,

(2) it occupies a central position in the organization, and

(3) its activities are non-substitutable.

Uncertainty refers to the lack of knowledge about the likelihood of certain events occurring in the
future. For example, departments that can shed light on projections of future markets, changes in
government regulations, & the availability of needed supplies, for example, can be expected to wield
the most power.

Centrality in an organisation means how important a certain parts of the company is and how much it
is needed for making decision and how quickly it’s actions affects the company. For example
accountant department is important because it has to approve the spending before it happens. If
something has affected the company it is considered to be crucial or central. So, centrality show how
crucial the part of our company is for making all things work smoothly.
 Non-substitutable Non-substitutability refers to the degree to which a particular organizational unit is
the only one capable of performing its specific duties. If multiple groups can fulfill the same function,
then the subunits responsible for controlling that function are not considered especially powerful.

In a hospital setting, for instance, personnel on surgical teams are typically more non-substitutable
than maintenance workers. This is because fewer individuals possess the specialized skills required
for surgery compared to those needed for routine maintenance tasks like mopping floors.

Organizational power is influenced by non-substitutability because units composed of individuals

who are easily replaced hold little sway within the organization. When an organization can readily
replace certain employees with others, either from within or outside, the subunits comprising these
easily replaceable individuals tend to wield minimal organizational power.

EMPOWERMENT

Empowerment the process of delegating authority to individuals at the lowest levels in organizations
at which competent decisions can be made. Although empowerment involves many specific steps and
policies, three are particularly important. These are:

 Information sharing: Providing potentially sensitive information on costs, productivity,

quality, and financial performance to employees throughout the organization.
 Autonomy through boundaries: Using organizational designs and practices that encourage
autonomous action by employees, including work procedures, areas of responsibilities, and
goals.
 Team accountability: Ensuring that both decision-making authority and performance
accountability reside in teams.

Employee empowerment is giving workers decision-making authority and resources within their area
of expertise. This differs from traditional delegation by encouraging initiative and providing resources
for implementation. By fostering collaboration and shared purpose, it can revitalize organizations and
deliver better customer value. However, overcoming challenges like impatience and unclear
expectations is crucial for success. Embedding empowerment in the company culture through
participation, innovation, information access, and accountability is key.

Empowerment: It's a Balancing Act!

Benefits:

· Workers are willing to take responsibility and improve, with training support.

· Empowerment programs lead to better manufacturing performance and empowered managers.

· Example: Georgia-Pacific employees empowered to improve testing processes, leading to a

company-wide system.

Challenges:

· Middle managers face conflicting demands: relinquish control vs. maintain it.

· Empowerment only works when everyone is on board with the new ideas.
· Balancing "poetic" ideas (aspirations) with "rhetoric" (reality) is crucial for feeling truly empowered.

Empowerment and Innovation: Empowerment fuels innovation by giving employees freedom to

experiment and make decisions. This creates a climate where:

Empowerment and Innovation:

· Employees with decision-making authority are more likely to try new ideas, even if they sometimes
fail (example of engineers and the product).

· This creates a climate where innovation is encouraged and supported by management

Empowerment and Access to Information:

· Giving employees access to relevant information (e.g., finances, operations) improves their ability to
collaborate and make informed decisions.

· This "open-book" culture contrasts with traditional, secretive approaches and leverages technology for
accessibility.

Empowerment and Accountability:

· While empowered to make decisions, employees are also held accountable for results.

·This accountability focuses on effort, goal achievement, and responsible behavior, not short-term
punishment.

· It fosters trust within the organization, where employees feel invested in the shared success.

Putting Empowerment into Action: Managers can implement employee empowerment through
various methods, including:

· Kaizen and "Just Do It" principles: This approach emphasizes continuous improvement,
team problem-solving, and immediate action, even if imperfect. Companies like Cummins
Engine use training programs to install these ideas in their workforce.

· Trust building: Trust is essential for empowerment to work well. Organizations should aim
for "optimal trust," which means balancing trust with some healthy skepticism. To build
trust, companies need to foster professional and collaborative relationships at all levels,
encourage open communication and information sharing, and incorporate fun activities to
help reduce stress. This combination helps create a supportive environment where
empowerment can thrive.

· Careful evaluation is crucial before implementing empowerment. Organizations need to

assess their readiness for empowerment and consider its potential benefits and drawbacks.
While some companies thrive with empowered employees, others may find that a different
approach works better for them. This evaluation ensures that the chosen strategy aligns with
the company's culture and goals.

Empowerment Climate a relatively enduring atmosphere in the workplace that is supportive of

empowerment.
Research shows that organizations with strong empowerment climates, characterized by information
sharing, autonomy, and team accountability, experience multiple positive outcomes:

Enhanced Team Performance: Teams in such climates perform better according to manager ratings.

Increased Individual Empowerment: Employees feel more empowered, leading to...

Improved Individual Performance: Their own work performance improves.

Higher Job Satisfaction: They experience greater satisfaction and well-being at work.

POLITICAL IMPLICATIONS OF POWER:

Power and politics are deeply intertwined in organizations. Some see politics as a pragmatic way to
get ahead, while others view it as a necessary skill for acquiring power, especially in resource-scarce
environments. Understanding these dynamics is crucial for navigating organizational behavior
effectively.

A Political Perspective of Power in Organizations

The classical organization theorists portrayed organizations as highly rational structures in which
authority meticulously followed the chain of command and in which managers had legitimatized
powers. The political perspective of organizations departs from the rational, idealistic model. For
example, Walter Nord dispels some of the dreams of ideal, rationally structured, and humanistic
organizations by pointing out some of the stark realities of political power. He suggests four
postulates of power in organizations that help focus on the political realities:

1. Organizations are composed of coalitions that compete with one another for resources, energy, and
influence.

2. Various coalitions will seek to protect their interests and positions of influence.

3. The unequal distribution of power itself has dehumanizing effects.

4. The exercise of power within organizations is one very crucial aspect of the exercise of power
within the larger social system.

In other words, the political power game is changing, but is still very real in today’s organizations.

Research on organizational politics has identified several areas that are particularly relevant to the
degree to which organizations are political rather than rational.

1. Resources. There is a direct relationship between the amount of politics and how critical and scarce
the resources are. Also, politics will be encouraged when there is an infusion of new, “unclaimed”
resources.

2. Decisions. Ambiguous decisions, decisions on which there is lack of agreement, and uncertain,
long-range strategic decisions lead to more politics than routine decisions.

3. Goals. The more ambiguous and complex the goals become, the more politics there will be.
4. Technology and external environment. In general, the more complex the internal technology of the
organization, the more politics there will be. The same is true of organizations operating in turbulent
external environments.

5. Change. A reorganization or a planned organization development (OD) effort or even an unplanned

change brought about by external forces will encourage political maneuvering.

Today's organizations are inherently political due to factors like limited resources, ambiguous goals,
and rapid change. This creates a climate where power struggles thrive and individuals and groups
compete for it. Political strategies become crucial for navigating this landscape. Organizations might
even resemble "fiefdoms" with internal power players.

___________________________________________________________________________

UNIT 4: Positive Organizational Behaviour: Positive Psychology: Self-Efficacy/Confidence,

Optimism, Hope, Resiliency; Psychological Capital (PsyCap) Other Positive Constructs
Emotional Intelligence (EI), work-life balance.

Psycap
Using positive psychology and Positive Organizational Behavior (POB), Luthans and colleagues have
introduced a concept called psychological capital or PsyCap. PsyCap is considered more
comprehensive than economic capital (assets), social capital (networks), and human capital (skills and
experience). PsyCap is defined as an individual's positive psychological state of development, which
includes:
 Confidence (Self-efficacy): Belief in one's ability to take on and put in the necessary effort to
succeed at challenging tasks.
 Optimism: Making positive attributions about succeeding now and in the future.
 Hope: Persevering toward goals and, when necessary, redirecting paths to achieve those
goals.
 Resiliency: Sustaining and bouncing back from adversity to attain success.

Background and Research on PsyCap

Each of the four psychological constructs that make up psychological capital (PsyCap)—confidence
(self-efficacy), optimism, hope, and resiliency—are well-known in positive psychology but have
received little attention in organizational behavior, except for self-efficacy.
Luthans and colleagues aimed to label these four constructs as "psychological capital" because, to
their knowledge, the term had not been used before. They found that the term was briefly mentioned
by Csikszentmihalyi and appeared in a 1997 economics article about wages.
Their intention was to highlight that, unlike economic, social, human, and intellectual capital, these
positive psychological resources had not yet been explored in workplace research. They suggested
that these components share a common thread: a positive evaluation of circumstances and a belief in
the likelihood of success through motivated effort and perseverance.

The following is representative of the evidence-based facets of PsyCap to date.

1. Psychological capital (PsyCap) was found to have a positive relationship with desirable
organizational behaviors and a negative relationship with negative attitudes like intentions to quit, and
counterproductive behaviors. Notably, PsyCap explained unique differences in these behaviors and
attitudes beyond what could be predicted by demographics (age, education, experience), core self-
evaluation traits, personality traits, and how well a person fits with their job or organization.

2. To see if PsyCap applies to different cultures, a study looked at workers in Chinese factories, like
those making metal products and shoes. They found that PsyCap had a connection with how well
these workers performed on the job. Another study with more factory workers in China confirmed
these results using the full PsyCap model. This is important for countries like China, as they can use
their people's psychological strength (not just their natural resources) to grow and compete better in
the world economy.

3. In addition to linking PsyCap with attitudes and job performance, recent studies suggest it can help
reduce stress (with a negative link), support positive organizational change (by promoting positive
emotions tied to attitudes and behaviors relevant to change), mediate the connection between a
supportive work environment and job performance, and influence both employee creativity and well-
being over time.

4. PsyCap is also a focus in our research on authentic leadership. For instance, one study revealed that
a leader's PsyCap level influenced followers' trust and perceptions of leader effectiveness, while
another found a positive connection between leaders' PsyCap levels and followers' performance.
Additional studies are ongoing, and PsyCap contributes to the broader theory of positive leadership
development.

The PsyCap intervention (PCI) model

This training program has been delivered through engaging face-to-face sessions lasting one to three
hours and also online with interactive activities and multimedia. We used proven methods to check
how effective the PsyCap training is by looking at real company data and research results. One
analysis even showed a huge 270 percent return on investment for PsyCap training for high-tech
engineers.
Other constructs
1. Swb
Definition and Background:
The concept of happiness, often referred to as Subjective Well-Being (SWB) in academic psychology,
including how people feel emotionally and how they think about their lives. It differs from mere
momentary feelings of happiness by focusing on how people interpret and process their experiences
emotionally and cognitively. SWB gained prominence through the work of positive psychologist Ed
Diener, who emphasized the importance of understanding the reason behind life satisfaction. This
shift in focus led to a deeper exploration of when and why people experience happiness, highlighting
its complexity as an ongoing process rather than a static state.

Diener and Biswas-Diener, in their recent book, present these conclusions:

  Happiness is a journey, not a destination. It's about having a positive outlook, finding
meaning, and embracing spirituality. True wealth involves inner attitudes as much as external
circumstances.
 There's an ideal level of happiness. Being excessively happy can sometimes lead to lower
performance in school or work, and even affect health negatively by overlooking symptoms
or necessary routines.
 Happiness, while not a direct line, is closely linked to health, long-lasting relationships, and
success in work.

Importance in Work:
SWB (Subjective Well-Being) is gaining recognition in the workplace. Research indicates a direct
link between SWB and job satisfaction, with happier individuals often reporting greater satisfaction at
work.
Studies by Judge and others show that SWB can predict job satisfaction over time, suggesting that
happier people tend to find more fulfillment in their careers. Moreover, SWB is associated with
positive workplace outcomes like increased productivity, effectiveness, and financial success.

Some organizations, such as Toyota, the American Red Cross, and Sprint Nextel, have adopted
happiness-based training programs to improve employee well-being and performance.

Implications:
 Happy employees are more productive, earn higher salaries, receive more promotions, and
obtain better ratings from supervisors.
 Organizations are recognizing the importance of fostering a positive work environment to
enhance employee well-being.
 Market research is focusing on understanding how products and services can contribute to
customer happiness.
 SWB is not fixed; it can change and develop through intentional activities.
 Strategies like practicing gratitude, nurturing social connections, managing stress, and setting
goals can enhance and sustain happiness.
 These strategies offer practical guidelines for achieving personal and professional fulfillment.

guidelines and specific activities for developing and sustaining happiness:

1. Practicing gratitude and positive thinking (expressing gratitude, cultivating optimism,

and avoiding overthinking and social comparison);
2. Investing in social connections (practicing acts of kindness and nurturing social
relationships);
3. Managing stress, hardship, and trauma (developing strategies for coping, learning to
forgive);
4. Living in the present (increasing flow experiences, savoring life’s joys);
5. Committing to your goals;
6. Taking care of your body and soul (practicing religion and spirituality, meditation, phys-
ical exercise, and acting like a happy person).

Emotional intelligence: Emotional intelligence (EI) in the workplace refers to the ability to
recognize, understand, manage, and influence one's own emotions and the emotions of others in a
professional setting. It encompasses a set of skills that are crucial for effective communication,
collaboration, and leadership.

EMOTIONAL INTELLIGENCE IN WORKPLACE

Emotional intelligence (EI) is increasingly recognized as crucial for organizational success,
complementing general intelligence in employee selection. EI, as defined by Salovey and Mayer
(1990), involves specific social abilities beyond general intelligence. A person with high EI
understands and manages their own emotions and those of others. Goleman further elaborates EI as
the ability to recognize and manage our own feelings and those of others, motivating ourselves, and
effectively handling emotions in relationships. EI is essential for positive organizational development
and fostering a collaborative and productive work environment.

1. Improved Individual Well-Being

POB emphasizes strengths and virtues that foster well-being among employees. This includes
promoting psychological resources such as resilience, optimism, and self-efficacy, which can lead to:

 Better Mental Health: Employees with higher levels of psychological well-being experience
less stress and anxiety.
 Physical Health Benefits: Reduced stress and improved mental health can lead to better
physical health outcomes.

2. Enhanced Work Performance

Research shows a significant correlation between positive psychological states and work performance.
Key benefits include:

 Increased Productivity: Positive emotions and attitudes can enhance motivation and
efficiency.
 Higher Job Satisfaction: Employees who feel valued and supported are more satisfied with
their jobs.
 Greater Creativity and Innovation: Positive environments encourage creative thinking and
problem-solving.

3. Stronger Relationships
POB fosters an environment where healthy interpersonal relationships can thrive:

 Improved Team Dynamics: Positive behaviors such as empathy and cooperation enhance
teamwork and collaboration.
 Better Communication: Open and positive communication reduces misunderstandings and
conflicts.

4. Organizational Benefits
Organizations that prioritize POB see several advantages:

 Lower Turnover Rates: Satisfied and engaged employees are less likely to leave.
  Attracting Talent: Positive organizational cultures attract top talent looking for supportive and
fulfilling work environments.
 Enhanced Reputation: Organizations known for their positive cultures can build strong
reputations and brand loyalty.

5. Societal Impact
The influence of POB extends beyond the organization to the larger community:

 Community Well-Being: Employees who experience positive organizational behavior bring

these benefits into their communities, fostering social cohesion and well-being.
 Economic Benefits: Improved productivity and innovation can contribute to economic
growth.

6. Development of Positive Organizational Cultures

POB encourages the development of cultures that value and nurture positive behaviors:

 Ethical Behavior: Emphasis on integrity and ethical behavior reduces incidents of

misconduct.
 Sustainable Practices: Positive cultures often prioritize sustainable and socially responsible
practices.

Practical Implementation of POB

To harness the benefits of POB, organizations can implement several strategies:

 Training and Development: Offer programs that develop positive psychological capital
(PsyCap) among employees.
 Recognition and Reward Systems: Recognize and reward positive behaviors and
achievements.
 Supportive Leadership: Encourage leaders to adopt positive leadership styles that support and
empower employees.
 Work-Life Balance: Promote policies that support work-life balance, reducing burnout and
enhancing well-being.

Factors effecting wlb:

Personal Life:

 Family duties, like taking care of children or elderly relatives.

 Health and wellness, including exercise, mental health, and self-care.
 Hobbies and leisure activities outside of work.
Work Environment:

 Job demands, including workload, deadlines, and overtime.

 Job flexibility, such as control over work hours or the option to work from home.
 Company culture and policies that support work-life balance, like flexible scheduling or
parental leave.

Social Life:

 Relationships with family, friends, and coworkers, which provide emotional support.
 Participation in social and community activities outside of work.

Technology:

 Use of technology for work, which can make it hard to separate work from personal time.
 Managing digital devices to maintain boundaries and reduce stress.

Financial Situation:

 Financial stability and concerns about money, which may influence work hours and job
choices.
 Financial goals, like saving for the future or paying off debt, which affect decisions about
work-life balance.

Cultural and Societal Norms:

 Cultural expectations about work and family roles, which vary by society.
 Support systems and policies, like affordable childcare or parental leave, which help balance
work and personal life.

Positive Outcomes and Consequences of Good Work-Life Balance:

Personal Well-Being:

 Better mental health with reduced stress and anxiety.

 Improved physical health due to more time for exercise and rest.
 Higher levels of happiness and life satisfaction.
Job Performance:

 Increased productivity and efficiency at work.

 Higher job satisfaction and motivation.
 Better creativity and innovation due to a refreshed mind.

Relationships:

 Stronger and more fulfilling personal relationships with family and friends.
 Better work relationships due to a more positive and balanced demeanor.

Retention and Loyalty:

 Increased employee retention as satisfied employees are less likely to leave.

 Higher loyalty and commitment to the company.

Reduced Absenteeism:

 Lower absenteeism due to better health and reduced burnout.

Enhanced Reputation:

 Companies with good work-life balance policies attract top talent.

 Positive company culture that enhances the organization's reputation.

Negative Outcomes and Consequences of Poor Work-Life Balance:

Personal Health:

 Increased stress and burnout, leading to mental health issues like anxiety and depression.
 Physical health problems such as fatigue, insomnia, and related illnesses.

Work Performance:

 Decreased productivity and efficiency.

 Higher likelihood of making mistakes or poor decision-making.
 Lower job satisfaction and motivation.

Relationships:

 Strained personal relationships due to lack of time and attention.

  Increased conflicts at home and at work.

Employee Turnover:

 Higher turnover rates as employees seek better work-life balance elsewhere.

 Increased recruitment and training costs for the company.

Absenteeism:

 Higher absenteeism due to health issues or burnout.

Organizational Impact:

 Negative impact on company culture and morale.

 Poor reputation, making it harder to attract and retain talent.

Strategies for Improving Work-Life Balance

Flexible Work Arrangements:

 Remote Work Options: Allow employees to work from home or other locations.
 Flexible Hours: Offer flexible start and end times to accommodate personal needs.
 Compressed Workweeks: Enable employees to work longer hours over fewer days.

Supportive Workplace Policies:

 Parental Leave: Provide generous maternity, paternity, and adoption leave.

 Paid Time Off (PTO): Ensure employees have sufficient vacation, sick leave, and personal
days.
 Employee Assistance Programs (EAPs): Offer services like counseling and mental health
support.

Health and Wellness Programs:

 On-site Fitness Facilities or Gym Memberships: Encourage physical activity.

 Health Screenings and Workshops: Promote preventative care and healthy lifestyles.
 Stress Management Programs: Provide resources for managing stress, such as yoga or
meditation classes.

Encouraging Work Boundaries:

  Limit After-Hours Work: Encourage employees to disconnect from work during evenings and
weekends.
 Promote Use of Vacation Days: Ensure employees take their allotted time off to recharge.
 No-Meeting Days: Designate days with no meetings to allow for focused work and personal
time.

Career Development and Support:

 Training and Development: Offer professional development opportunities that align with
personal goals.
 Mentorship Programs: Pair employees with mentors for career guidance and support.
 Clear Career Paths: Provide clarity on advancement opportunities within the organization.