Case Study: copyright (Anup Shrestha)

The three energetic and freshly passed out MBA graduates from Apex College, who have common characteristics and interest of becoming an entrepreneur, opened an Educational Consultancy "Trinity Education Foundation" in 2010. Among the group members are Jayaman, Ragav and Prabhu. Prabhu has been leading the group as a Director. Jayman as an Operation manager and Ragav as Marketing manger. Seven employees are working in Trinity since then.

The market was flourishing with students (customers) seeking career and educational counseling abroad. The major destination for student was Australia, Canada, United Kingdom, America and Scandinavian countries. Business was booming, with handsome profit till end of 2012 as the regulation were quite simple for student visa and getting offer letter from the University.

Beginning of 2013, was the starting point of the worst part of the business, as many countries now have   regulated the flow of international students, with more strict student visa policy. Consequently, the business started to drop gradually.

In the very time, three partners have different views of what to do next. Jayman wanted to close the business and shift to other lucrative one. Ragav wanted to continue with the same business, hoping that situation will change in future and Prabhu wanted to pull back his partnership share and go abroad.

Conflict in opinion resulted Prubhu frequently remaining absenteeism at the work place. Jayman and Ragav had a dispute in reducing cost by firing some employee. Employees were feeling that the environment in office was no more interesting and motivating.

Case Questions:

1. 'Environment Scanning is important to deal with situation of risk and uncertainty'. What were the major environmental factors affecting Trinity Education Foundation. Do you think that Trinity have properly done the environmental scanning, explain?
2. If you were Prabhu, how would you manage your team?
3. If you were one of the employees working for Trinity what will be your suggestion to improve the situation?

Unit 4 (P 37) Employee Motivation

Motivation

• Motivation is a term that refers to a process that elicits, controls, and sustains certain behaviors.
• Motivation is defined as the process that initiates, guides and maintains goal-oriented behaviors. Motivation is what causes us to act, whether it is getting a glass of water to reduce thirst or reading a book to gain knowledge
• The process that accounts for an individual’s intensity, direction, and persistence of effort toward attaining a goal.
• The key elements in motivation are:
• Intensity: How hard a person tries.
• Direction: toward beneficial goal.
• Persistence: how long a person tries.(Persistence is the ability to maintain action regardless of your feelings. You press on even when you feel like quitting.)
• Dynamic force which sets a person into motion”
• “An inner state that energizes, activates and directs or channels behavior towards goals”

Feature of motivation

•  Component of directing: Motivating is an important component of directing functions of management. It is the responsibility of the managers to motive their subordinated to get all things done. Psychological aspect: Motivation is a psychological aspect of management. It is the internal feeling which arises from the need and desires of a person. Motivation generates from within an individual. It starts and keeps individual at work
• Goals directed: Motivation generates goals-directed behavior. Feeling of need by the persons causes him/her to behave in such a way that he/she tries to satisfy himself. Human needs influence behavior to achieve desired goals.
• Continuous process: Motivation is a continuous process. Where a particular need is satisfaction, a new need is seen. It is the result of an interaction between human needs and the incentives offer to satisfy them.
• Positive or negative: Motivation may b positive or negative. Positive motivation means inspiring people to work better by providing rewards and incentives. Negative motivation means forcing people to work by punishing them.
• Complex and Dynamic process: Motivation is a complex and dynamic process. Individuals differ in their needs and wants. Different individuals work to fulfill their own needs. They satisfy their need in different ways. Moreover, human need change from time to time. Influence Behavior: motivation focus to influence the behavior of the employee to meet the standard level of behavior to be shown at the work place.
• Concentrates on whole individual: Motivation puts effort to change the behavior not only at work place, but person as a whole. 
• Pervasive function: Motivation is carried out by all mangers and in all types of concerns where business activities are carried out. Every manager provides guidance and inspiration to his subordinates.

 Importance of motivation

•  Increased Productivity: When employees are motivated from inside or from outer sources they show passion for their work and give better performance. When they are given a target to achieve they give their best efforts to reach their targets  and complete the given task on or before time. Though they are not promised any monetary compensation on the completion of their targets they are themselves motivated to do their task because they know that the management trust’s their ability to perform and they want to prove it by completing the given task. This attitude of the employees leads to increased productivity which is very beneficial for the company. 
• Improved employee morale: Continuous motivation of employees boosts their morale and they work and perform better. A happy team with a high morale are ready to face any challenge in their job without any issue. They are ready for the most difficult task given to them as there are happy from within and have a high esteem of themselves because of this the company or organization experience less employee conflicts and less absenteeism.
• More loyal staff: A highly motivated employee groups are loyal towards their organization. When they are motivated on a regular basis they know that their employers care for them and want them so they are more loyal to the organization. Employing new staff and training them is very expensive task for any organization so a loyal workforce will reduce this expenditure and the company can concentrate on other important issues. A company with good and loyal workforce will gain good reputation in the market and people would want to associate more with the company.
• Better Creativity: When an employee is highly motivated they feel free to express their views and ideas since they are passionate about their jobs. They know that they are an important part of the organization and want to contribute more towards the betterment of the organization, this makes them more creative. For increasing the creativity amongst the employees, managers have to design a leadership style in such a way that is encourages employees to provide more suggestions, new ideas and new cost effective ways of delivering better performance.
• Individual growth and improvement: A motivated employee is ready to take up more tasks for the company and tries to complete it with best efforts. For this they study and train themselves more, this makes them more experience in their field. By taking and accomplishing more tasks they increase their individual growth and improve their knowledge. They are more likely to be recognized within the organization and also outside the organization. Their chances of appraisal and promotion are also increased.
• Leads to achievement of organizational goals: Motivation helps to achieved organizational goals by, proper utilization of resources, maintaining a co-operative work environment, directing employees in a purposive manner. Goals can be achieved if co-ordination and co-operation takes place simultaneously which can be effectively done through motivation.
• Builds friendly relationship: Motivation is an important factor which brings employees satisfaction. This can be done by keeping into mind and framing an incentive plan for the benefit of the employees. This could initiate by; Monetary and non-monetary incentives, Promotion opportunities for employees, Disincentives for inefficient employees.
• Leads to stability of work force: Stability of workforce is very important from the point of view of reputation and goodwill of a concern. The employees can remain loyal to the enterprise only when they have a feeling of participation in the management. The skills and efficiency of employees will always be of advantage to employees as well as employees. This will lead to a good public image in the market which will attract competent and qualified people into a concern.

Motivational process

• Needs
• Drives
• Incentives

Theories in motivation

• Hierarchy of Needs Theory by Abraham Maslow
• Two-Factor Theory (Frederick Herzberg) (Motivation Hygiene Theory).(Check post no. 11)

Techniques for improving employee motivation

1. Financial incentives: Monetary benefit offered to encourage behavior or actions of employees. A financial incentive motivates actions which otherwise might not occur without the monetary benefit. It is a monetary reward provided for performance above targeted objectives. The scientific / Theory X approach, in particular, argues that workers respond to financial rewards. Getting employee pay right is a crucial task for a business.
2. Participation: the act of sharing in the activities of a group. Sharing of ideas and information motivates employees to look for more creative ideas.
3. Delegation of authority: Delegation of authority is assigning work to subordinates and giving them necessary authority to do the assigned work effectively. Delegation means assigning of certain responsibilities along with the necessary authority by a superior to his subordinate managers
4. Job security: It can be enhance with formal training and development programs.
5. Job enlargement: Job enlargement involves adding extra, similar, tasks to a job. In job enlargement, the job itself remains essentially unchanged.  However, by widening the range of tasks that need to be performed, hopefully the employee will experience less repetition and monotony.
6. With job enlargement, the employee rarely needs to acquire new skills to carry out the additional task.
7. A possible negative effect is that job enlargement can be viewed by employees as a requirement to carry out more work for the same pay!
8. Job Enrichment: Job enrichment attempts to give employees greater responsibility by increasing the range and complexity of tasks they are asked to do and giving them the necessary authority. 
9. Job Rotation: ob rotation involves the movement of employees through a range of jobs in order to increase interest and motivation. .
10. Reinforcement: Reinforcement refers to the consequences of desired behavior. Reinforcement may be either positive or negative, depending on its application.
11. Quality of work life: Extent to which employees can enhance their personal lives through their work environment and job related experiences.
12. Team work and empowering: Empowerment involves giving people greater control over their working lives. Organizing the labour force into teams with a high degree of autonomy can achieve this.

  Reward system to motivate performance

Extrinsic and Intrinsic reward:

1. Extrinsic rewards are money and grades, coercion and threat of punishment. It results to extrinsic motivation. Competition is in general extrinsic because it encourages the performer to win and beat others, not to enjoy the intrinsic rewards of the activity.
2. Intrinsic rewards are: Opportunity for achievement, giving of challenging responsibility, Opportunity for advancement, Opportunity for growth in stature and peer recognition.  It leads into intrinsic motivation. Intrinsic reward is driven by an interest or enjoyment in the task itself, and exists within the individual rather than relying on any external pressure. Intrinsically motivated employees are more likely to engage in the task willingly as well as work to improve their skills, which will increase their capabilities.

 Financial and Non-financial Reward

1. Financial reward or Compensation is a systematic approach to providing monetary value to employees in exchange for work performed. Compensation may achieve several purposes assisting in recruitment, job performance, and job satisfaction
2. Non-financial rewards will help you provide your employees with a sense of achievement and recognition for their high performance, encouraging them to perform even further in the future.

 Essential of effective reward

1. Satisfy needs: Rewards must be according to needs for which the employees are working. Financial incentives are more effective motivators for employee with basic needs, but may be inefficient if the employee have higher needs.
2. Effort- reward relation: Expectancy theory suggest that employees expect that their effort will lead to certain output and rewards. It employees believe that the effort will lead to rewards that satisfy their needs, they will do best to get that reward.
3. Equitable reward: Equity Theory by J. Stacy Adams states Individuals compare their job inputs and outcomes with those of others and then respond to eliminate any inequities. Management must ensure fairness and uniformity in the application of the reward system.
4. Variety of rewards and methods: Management should focus to use multiple combination to financial and non financial rewards and methods as per the need and the expectation of the employee.

 Motivation through employee participation:

Quality of work life:

• Extent to which employees can enhance their personal lives through their work environment and job related experiences.
• It indicates the quality of relationship between employees and the total work environment.  Its main focus is to promote learning and development.
• The Quality of Work life department implements programs and practices that encourage a positive and productive work experience l.
• Quality of work life programmes has two objectives: to enhance the productivity and the satisfaction of employees.
• Quality of Work Life helps employees to feel secure and like they’re being thought of and cared for by the organization in which they work.
• QWL has following essential elements:

• Adequate income and fair compensation
• Safe and healthy working conditions.
• Opportunities of use and develop human capabilities.
• Opportunity for Continued Growth and Security
• Social integration in the work organization
• Right to personal privacy, free speech and equitable treatment
• Work and the Total Life Space

Mechanism through which QWL can be achieved are:

Quality circle:

• Pioneered by Japanese; quality circle is a volunteer group composed of workers , who are trained to identify, analyze and solve work-related problems and present their solutions to management in order to improve the performance of the organization, and motivate and enrich the work of employees.
• Usually the members of a particular team (quality circle) should be from the same work area or who do
• similar work so that the problems they select will be familiar to all of them. In addition, interdepartmental or cross functional quality circles may also be formed.

Employees share ownership:

• Employee share schemes let employees benefit from the business success they're helping to create.
• An employee share ownership plan is the practice of companies giving staff members shares in their company as part of their salary.
• An ESO is a defined contribution employee benefit plan that allows employees to become owners of stock in the company they work for. It is an equity based deferred compensation plan. Under the ESO plan, companies provide their employees the opportunity to acquire the company's shares at a reduced price over a period of time.
• Feeling of ownership will lead to commitment and they will have opportunity in decision making.

Flexible work schedule:

• Flexi time is a variable work schedule. There is typically a core period of the day, when employees are expected to be at work , while the rest of the working day is "flexitime", in which employees can choose when they work, subject to achieving total daily, weekly or monthly hours in the region of what the employer expects, and subject to the necessary work being done.
• A flextime policy allows staff to determine when they will work, while a flexplace policy allows staff to determine where they will work.
• Employers appreciate the boost in productivity and morale while employees reap the benefits of structuring work around their lives instead of the other way around. Flexible work scheduling is a win-win situation.

Self managed work team:

• Self managed team, mean a group of people working together to deliver a project without needing a specific leader or manager to control and direct the group’s activities.
• Team members have greater freedom to complement each other’s skills.
• Team members are interdependent and the role of supervisor is missing.
• The role of manager or supervisor, in the case of a self-directed team, is replaced by all the members of the team. Together, they plan and execute the work, day in and day out, carrying out the directions set by management above them.
• self managed teams as “groups of employees who have the responsibility and authority to manage the work they do.
• The teams are also responsible for handling their interpersonal issues within themselves and work without any direct supervision.
• They are generally composed of 10 to 15 people who take on the responsibilities of their former supervisors. Typically, these responsibilities include:
• Collective control over the pace of work,
• Determination of work assignments,
• Organization of breaks, and
• Collective choice of inspection procedures used.

 Fully self-managed teams select their own members, and the members evaluate each other’s performance. As a result, supervisory positions take on decreased importance and may even be eliminated, see 

Unit 4 (P 36) Managing work Teams: Conflict, types, sources; management strategies and techniques

Organizational conflict:

• Conflict is disagreement between parties. Two or more individuals, groups or organization.
• A conflict is a situation where one party perceives that other party has negatively affected its interests.
• Conflict is a disagreement through which the parties involved perceive a threat to their needs, interests or concerns.

Types of conflict/ conflicts at different level:

1. Intra personal: Interpersonal conflict is the conflict between individuals of the organization.
2. Inter Personal: conflict between the individual and his/ her goals and beliefs.
3. Inter group: Intergroup conflict is the conflict between different groups, teams and departments. When different groups are pitted against each other, this is an example of an intergroup conflict.
4. Intra group: Intra group conflict is the conflict within an internal group, team or department. These are conflicts that typically involve more than one person within a group.
5. Inter organizational: Inter organizational conflict is the conflict that arises across different organizations. When different businesses are competing against one another, this is an example of inter organizational conflict.

Sources of conflict:

• Conflict in goals
• Conflict in ideas
• Conflict in attitudes
• Conflict in behavior:
• Conflict in expectation:
• Poor communication:
• Scarce Resources:

Managing conflict in organization:

• Stimulating conflict:
• Reorganizing:
• Communication:
• Encouraging competition:
• Bring outsiders: Individuals whose backgrounds, values, attitudes, or personalities differ from those of present members.-One benefit of the diversity movement.

• Preventing conflict:
• Super ordinate goal: Super ordinate goals, in psychology, are goals that are achieved by the contribution and co-operation of two or more people, with individual goals that are normally in opposition to each other, working together.
• Reducing interdependence:
• Exchange of personnel:
• Liaison group or integrators:
• Appeal to higher authority:

• Resolving conflict:
• Collaborative: People tending towards a collaborative style try to meet the needs of all people involved. These people can be highly assertive but unlike the competitor, they cooperate effectively and acknowledge that everyone is important. This style is useful when a you need to bring together a variety of viewpoints to get the best solution; when there have been previous conflicts in the group
• Accommodating / smoothing: This style indicates a willingness to meet the needs of others at the expense of the person's own needs. The accommodator often knows when to give in to others, but can be persuaded to surrender a position even when it is not warranted. This person is not assertive but is highly cooperative. Accommodation is appropriate when the issues matter more to the other party, when peace is more valuable than winning, or when you want to be in a position to collect on this "favor" you gave.
• Compromising: People who prefer a compromising style try to find a solution that will at least partially satisfy everyone. Everyone is expected to give up something and the compromiser him- or herself also expects to relinquish something. Compromise is useful when the cost of conflict is higher than the cost of losing ground, when equal strength opponents are at a standstill and when there is a deadline looming.
• Avoidance: People tending towards this style seek to evade the conflict entirely. This style is typified by delegating controversial decisions, accepting default decisions, and not wanting to hurt anyone's feelings. It can be appropriate when victory is impossible, when the controversy is trivial, or when someone else is in a better position to solve the problem. However in many situations this is a weak and ineffective approach to take.
• Competitive: People who tend towards a competitive style take a firm stand, and know what they want. They usually operate from a position of power, drawn from things like position, rank, expertise, or persuasive ability. This style can be useful when there is an emergency and a decision needs to be make fast; when the decision is unpopular; or when defending against someone who is trying to exploit the situation selfishly. However it can leave people feeling bruised, unsatisfied and resentful when used in less urgent situations.

Unit 4 (P 35) Managing Work Teams: concept, types and strategy

Teams in organization

• Teams normally have members with complementary skills and generate synergy ((Synergy may be defined as two or more things functioning together to produce a result not independently obtainable)) through a coordinated effort which allows each member to maximize his/her strengths and minimize his/her weaknesses. 
• A work team generates positive that would create an overall level of performance that is greater than the sum of those individual inputs.
• Team members need to learn how to help one another, help other team members realize their true potential, and create an environment that allows everyone to go beyond their limitations.
• Team members: (1) operate with a high degree of interdependence, (2) share authority and responsibility for self-management, (3) are accountable for the collective performance, and (4) work toward a common goal and shared rewards(s).
• A team becomes more than just a collection of people when a strong sense of mutual commitment creates synergy, thus generating performance greater than the sum of the performance of its individual members.
• T.E.A.M = Together everyone achieves more.

Characteristics of Teams:

• It is small group of people with complementary skills:
• All team members have common goal:
• It is self directing, autonomous and self directing:
• It has individual and mutual accountability;
• It generates synergy:

The value or Importance of teams

• Teams typically outperform individuals when the tasks being done require multiple skills, judgment and experience:
• Teams use employee talents better:
• Teams are more flexible and responsive to changes in the environment:
• Teams facilitate employee involvement:
• Teams are an effective way to democratize an organization and increase motivation:
• Increase employee motivation:
• Higher level of productivity:
• Improved communication:
• Increased employee satisfaction.
• Common commitment to goals.
• Expanded job skills.

Difference between Work Group and Work Teams

Work Groups Work teams

Individual Accountability Individual and mutual accountability

Focus on individual Goals Focus on team goals

Synergy is neutral (sometimes negative) Positive synergy

Member have random and varied skills Members have complementary skills

All groups are not teams. All teams are groups

share information Collective performance

a work group has a strong leader shared leadership role

Types of team

Problem Solving Teams:

Problem-solving teams or task forces are formed when a problem arises that cannot be solved within the standard organizational structure. These teams are generally cross-functional; that is, the members come from different areas of the organization, and are charged with finding a solution to the problem.

• Temporary teams
• Frequently cross-functional
• Focused on a particular project

Self Managed Teams:

• Self-managed teams use clear boundaries to create the freedom and responsibility to accomplish tasks in an efficient manner.
• Self managed team, mean a group of people working together to deliver a project without needing a specific leader or manager to control and direct the group’s activities.
• Team members are interdependent and the role of supervisor is missing.
• The role of manager or supervisor, in the case of a self-directed team, is replaced by all the members of the team. Together, they plan and execute the work, day in and day out, carrying out the directions set by management above them.
• Self managed teams as “groups of employees who have the responsibility and authority to manage the work they do.
• The teams are also responsible for handling their interpersonal issues within themselves and work without any direct supervision.
• They are generally composed of 10 to 15 people who take on the responsibilities of their former supervisors. Typically, these responsibilities include:
• Collective control over the pace of work,
• Determination of work assignments,
• Organization of breaks, and
• Collective choice of inspection procedures used.

Cross functional Teams:

• A cross-functional team is a group of people with different functional expertise working toward a common goal.
• It may include people from finance, marketing, operations, and human resources departments.
• Employees from about the same hierarchical level, but from different work areas, who come together to accomplish a task.
• CFTs have shown the flexibility to adapt to changing market needs and the ability to more quickly develop innovative products.
• CFTs are being used on a part-time basis as opposed to a permanent organizational structure, they are often temporary groups organized for one important purpose.
• E.g., Task force, project team, management team, product development team.

Virtual Teams:

• A virtual team (also known as a geographically dispersed team or GDT) is a group of individuals who work across time, space and organizational boundaries with links strengthened by webs of communication technology.
• Virtual teams do not have hierarchy or any other common structures because they may not be from the same organization, and purpose here brings and holds the team together.
• Reasons for virtual teams :
• Team members may not be physically collocated.
• It may not be practical to travel to meet face-to-face.
• Team members may work different shifts
•  Issues can arise with a lack of facial or auditory clues; participants must be taken at their word, even when video-conferencing tools are used.
• Accountability is impacted by taking a team virtual. Each member is accountable for their tasks and to the team as a whole usually with minimal supervision.
• Key factors in the success of a virtual team are effective formation of the team, trust and collaboration between members, and excellent communication.

Unit 4 (P 34) Managing Work Teams: Concept, importance, types and formation of work groups

Groups in the Organization

• A collection of individuals who have regular contact and frequent interaction, mutual influence, common feeling of camaraderie (a spirit of friendly good-fellowship), and who work together to achieve a common set of goals.
• A group is a collection of two or more interacting individuals with a stable pattern of relationships who share common goals and who perceive themselves as being a group.
• Groups have boundaries—we know who is in them and who isn’t.
• Groups can be really small or really large
• Groups are really important because they affect the way we view the world, our sense of self, and our understanding of where we fit into the larger social scene.
• School at Harvard University in the 1930’s and some sociologists named Alvin Gouldner and Peter Blau in the 1950’s showed that personal relationships at work place (or in group) lead to more efficiency than impersonal relationships.

Characteristics of groups:

• Collection of people or individuals:
• Interaction among members:
• Mutual awareness/ shared goal and interest:
• Group Norms
• Group roles
• Common goals
• Group leader:

Importance of groups in organization:

• Groups provide satisfaction to members:
• Groups can solve problem better:
• Groups can make better decisions:
• Groups are good for implementing decisions:
• Groups are more effective in controlling their members:
• Groups contribute to the development of members personality:

Group Development/ Group Formation:

According to Tuckman's theory, there are five stages of group development: forming, storming, norming, performing, and adjourning. During these stages group members must address several issues and the way in which these issues are resolved determines whether the group will succeed in accomplishing its tasks.

1. Forming: This stage is usually characterized by some confusion and uncertainty. The major goals of the group have not been established. The nature of the task or leadership of the group has not been determined (Luthans, 2005). Thus, forming is an orientation period when members get to know one another and share expectations about the group. Members learn the purpose of the group as well as the rules to be followed. The forming stage should not be rushed because trust and openness must be developed. These feelings strengthen in later stages of development. Individuals are often confused during this stage because roles are not clear and there may not be a strong leader.
2. Storming: In this stage, the group is likely to see the highest level of disagreement and conflict. Members often challenge group goals and struggle for power. Individuals often vie for the leadership position during this stage of development. This can be a positive experience for all groups if members can achieve cohesiveness through resolution. Members often voice concern and criticism in this phase. If members are not able to resolve the conflict, then the group will often disband or continue in existence but will remain ineffective and never advance to the other stages.
   
3. Norming: This stage is characterized by the recognition of individual differences and shared expectations. Hopefully, at this stage the group members will begin to develop a feeling of group cohesion and identity. Cooperative effort should begin to yield results. Responsibilities are divided among members and the group decides how it will evaluate progress.
4. Performing:  Performing, occurs when the group has matured and attains a feeling of cohesiveness. During this stage of development, individuals accept one another and conflict is resolved through group discussion. Members of the group make decisions through a rational process that is focused on relevant goals rather than emotional issues.
5. Adjourning: Not all groups experience this stage of development because it is characterized by the disbandment of the group. Some groups are relatively permanent (Luthans, 2005). Reasons that groups disband vary, with common reasons being the accomplishment of the task or individuals deciding to go their own ways. Members of the group often experience feelings of closure and sadness as they prepare to leave.

Types of Groups in organization

Formal Groups

Formal group and institution could be defined as, the rules that are readily observable through written documents or rules that are determined & executed through formal position such as authority or ownership. They include explicit incentives, contractual terms, & firm boundaries as defined by equity positions, organizational charts and job descriptions generally reflect the formal structure or prescribed network in a given organization

A formal group is the deliberate and systematic grouping of people in an organization so that organizational goals are better achieved. 

    1.  COMMAND GROUPS.Command groups are specified by the organizational chart and often consist of a supervisor and the subordinates that report to that supervisor. It is permanent in nature where functional relationship exists. The members report to common supervisor. An example of a command group is an academic department chairman and the faculty members in that department.

   2.  TASK GROUPS.Task groups consist of people who work together to achieve a common task. Members are brought together to accomplish a narrow range of goals within a specified time period. Task groups are also commonly referred to as task forces. The organization appoints members and assigns the goals and tasks to be accomplished. Examples of assigned tasks are the development of a new product, the improvement of a production process, or the proposal of a motivational contest. Other common task groups are ad hoc committees, project groups, and standing committees. 

Informal Groups

Informal group comprises of a small number of people who frequently participate in activities and share feelings for the purpose of meeting their mutual needs. The institution is a set of rules based on implicit understanding, being in most part socially derived and therefore not accessible through written developments or necessarily sanctioned through formal position. Informal groups are the natural and spontaneous grouping of people whenever they work together over a period of time.

Whenever people interact and work together over a certain period of time, it’s very natural for them and it comes very spontaneously for them, that they form informal groups.

    1.  Interest Groups:

Interest groups are associations or organizations of individuals who share a common interest and assert their collective strength in the political process to protect — and in some cases, expand — that interest. These groups may form for many reasons: to celebrate a common heritage, pursue a political or social agenda, shape a policy debate, or strengthen a profession or avocation. 

The term interest group refers to virtually any voluntary association that seeks to publicly promote and create advantages for its cause. It applies to a vast array of diverse organizations. This includes corporations, charitable organizations, civil rights groups, neighborhood associations, professional and trade associations

    2.  Friendship groups:

Friendships are becoming more significant in today’s world as other social bonds such as family and marriage may not last us a lifetime. Friendships have intrinsic value.

Figuring out friendship is part of growing up. It can be great to have a BFF or a group of pals to hang out with. Being part of a group can help make your day easier to deal with — and you can learn some great life skills like being a good listener, sharing experiences, and respecting people. Groups can form around things people have in common. The people in these groups feel they have a place where they are welcome and supported, and where they can be themselves, quirks(a peculiarity of action, behavior, or personality;) and all.

Unit 4 (P 34) Leadership: Approaches of leadership (Contingency Approach and Qualities of good leadership)

Situational / Contingency Theories:

• The fundamental underpinning of the situational leadership theory is there is no single "best" style of leadership. 
• Effective leadership is task-relevant and that the most successful leaders are those that adapt their leadership style to the maturity of the individual or group they are attempting to lead/influence. 
• Effective leadership varies, not only with the person or group that is being influenced, but it will also depend on the task, job or function that needs to be accomplished.
• The situational approach to leadership is based on the assumption that each instance of leadership is different and therefore requires a unique combination of leaders, followers, and leadership situations.
• This interaction is commonly expressed in formula form: SL=f(L,F,S), where SL is successful leadership; f stands for function of; and L, F, and S are, respectively, the leader, the follower, and the situation. 
• In other words, this formula says that successful leadership is a function of a leader, follower, and situation that are appropriate for one another. Some of the major studies based on situational perspective are described below.

Fiedler's contingency theory

Fred E. Fiedler's contingency theory centers on the belief that there is no best way for managers to lead. Different situations create different leadership style requirements for managers. The style that works in one environment may not work in another. Fiedler looked at three elements that dictate a leader's situational control. These elements are:

• Task structure. Is the job highly structured, fairly unstructured, or somewhere in between? The spelling out in detail (favorable) of what is required of subordinates affects task structure.
• Leader/member relations. This element applies to the amount of loyalty, dependability, and support that a leader receives from his or her employees. In a favorable relationship, a manager has a highly formed task structure and is able to reward and/or punish employees without any problems. In an unfavorable relationship, the task structure is usually poorly formed, and the leader possesses limited authority.
• Positioning power. Positioning power measures the amount of power or authority a manager perceives the organization has given him or her for the purpose of directing, rewarding, and punishing subordinates. Positioning powers of managers depends on the taking away (favorable) or increasing (unfavorable) of the decision-making power of employees.

Fiedler then rated managers as to whether they were relationship oriented or task oriented. 

• Task-oriented managers tended to do better in situations with good leader/member relationships, structured tasks, and either weak or strong position power.
• They also did well when the tasks were unstructured but position power was strong, as well as when the leader/member relations were moderate to poor and the tasks were unstructured. 
• Relationship-oriented managers, on the other hand, do better in all other situations.
• The task-motivated style leader experiences pride and satisfaction in task accomplishment for his or her organization, while the relationship-motivated style leader seeks to build interpersonal relations and extend extra help for team development in his or her organization.

Fiedler concluded that task oriented leader would do better in favorable and unfavorable situations as shown in the figure. Category I, II, III, VII and VIII are better for task oriented leaders.

Relationship oriented leaders are better in moderately favorable situation i.e. category IV, V, and VI.

Judging whether a leadership style is good or bad can be difficult. Each manager has his or her own preferences for leadership. Task-motivated leaders are at their best when their teams perform successfully—such as achieving new sales records or outperforming major competitors. Relationship-oriented leaders are at their best when greater customer satisfaction is gained and positive company images are established.

Robert House's path-goal theory

• The path-goal theory, developed by Robert House, is based on the expectancy theory of motivation. A manager's job is to coach or guide workers to choose the best paths for reaching their goals. Based on the goal-setting theory, leaders engage in different types of leadership behaviors depending on the nature and demands of a particular situation.
• A leader's behavior is acceptable to subordinates when viewed as a source of satisfaction. He or she is motivational when need satisfaction is contingent on performance; this leader facilitates, coaches, and rewards effective performance. 
• Path-goal theory identifies several leadership styles to motivate and satisfy employees:

1. Achievement-oriented. The leader sets challenging goals for followers, expects them to perform at their highest levels, and shows confidence in their abilities to meet these expectations. This style is appropriate when followers lack job challenges.
2. Directive. The leader lets followers know what is expected of them and tells them how to perform their tasks. This style is appropriate when followers hold ambiguous jobs.
3. Participative. The leader consults with followers and asks them for suggestions before making a decision. This style is appropriate when followers are using improper procedures or are making poor decisions.
4. Supportive. The leader is friendly and approachable. He or she shows concern for the followers' psychological well-being. This style is appropriate when followers lack confidence.

Path-goal theory assumes that leaders are flexible and that they can change their styles as situations require. This theory proposes two contingency variables that moderate the leader behavior-outcome relationship:

1. Environment characteristics are outside the control of followers, task structure, authority system, and work group. Environmental factors determine the type of leader behavior required if follower outcomes are to be maximized.
2. Follower characteristics are the focus of control, experience, and perceived ability. Personal characteristics of subordinates determine how the environment and leader behavior are interpreted.
3. Effective leaders clarify the path to help their followers achieve their goals, and make their journeys easier by reducing roadblocks and pitfalls. Research demonstrates that employee performance and satisfaction are positively influenced when leaders compensate for shortcomings in either their employees or the work settings. An effective leader is one who understands the characteristics of subordinates and environmental situation and who matches his behavior accordingly.

Qualities of Good leadership

1. Vision: A strong sense of where you are going as a person and where you think society, your community and your organization should be going – and how it might get there
2. A good leader has an exemplary character. It is of utmost importance that a leader is trustworthy to lead others. A leader needs to be trusted and be known to live their life with honestly and integrity. A good leader “walks the talk” and in doing so earns the right to have responsibility for others. True authority is born from respect for the good character and trustworthiness of the person who leads. 
3. A good leader is enthusiastic about their work or cause and also about their role as leader. People will respond more openly to a person of passion and dedication. Leaders need to be able to be a source of inspiration, and be a motivator towards the required action or cause. Although the responsibilities and roles of a leader may be different, the leader needs to be seen to be part of the team working towards the goal. This kind of leader will not be afraid to roll up their sleeves and get dirty. 
4. A good leader is confident. In order to lead and set direction a leader needs to appear confident as a person and in the leadership role. Such a person inspires confidence in others and draws out the trust and best efforts of the team to complete the task well. A leader who conveys confidence towards the proposed objective inspires the best effort from team members.
5. A leader also needs to function in an orderly and purposeful manner in situations of uncertainty. People look to the leader during times of uncertainty and unfamiliarity and find reassurance and security when the leader portrays confidence and a positive demeanor.
6. Good leaders are tolerant of ambiguity and remain calm, composed and steadfast to the main purpose. Storms, emotions, and crises come and go and a good leader takes these as part of the journey and keeps a cool head.
7. A good leader as well as keeping the main goal in focus is able to think analytically. Not only does a good leader view a situation as a whole, but is able to break it down into sub parts for closer inspection. Not only is the goal in view but a good leader can break it down into manageable steps and make progress towards it.
8. A good leader is committed to excellence. Second best does not lead to success. The good leader not only maintains high standards, but also is proactive in raising the bar in order to achieve excellence in all areas.
9. Innovation: The ability to "think outside the box," take risks and develop new and effective solutions to old and emerging problems.
10. Effective communication: A willingness and ability to listen to and understand the thoughts, ideas and concerns of others and to clearly communicate your own. A vision is nothing if it can't be sold to others.
11. Forward-looking — Set goals and have a vision of the future. The vision must be owned throughout the organization. Effective leaders envision what they want and how to get it. They habitually pick priorities stemming from their basic values.

Unit 4 (P 33) Leadership: Approaches of leadership (Trait and Behavioral)

Approaches to leadership

Trait Approach to leadership:

• This style of leadership gives more credence to the qualities a person is born with rather than what they develop or the relationships they develop with followers. 
• Leadership trait theory is the idea that people are born with certain character traits.  This is the style that is attributed to a leader who others see as “a born leader”.  
• The innate qualities and characteristics possessed by strong leaders.  
• These traits, while not totally responsible for an individual's success as a leader, are influential in the success of the leader.  
• This theory assumes that if you could identify people with the correct traits, you will be able to identify leaders.
• Scholars taking the trait approach attempted to identify physiological (appearance, height, and weight), demographic (age, education and socioeconomic background), personality, self-confidence, and aggressiveness), intellective (intelligence, decisiveness, judgment, and knowledge), task-related (achievement drive, initiative, and persistence), and social characteristics (sociability and cooperativeness) with leader emergence and leader effectiveness.

Among the core traits identified are:

• Achievement drive: High level of effort, high levels of ambition, energy and initiative
• Leadership motivation: an intense desire to lead others to reach shared goals
• Honesty and integrity: trustworthy, reliable, and open
• Self-confidence: Belief in one’s self, ideas, and ability
• Cognitive ability: Capable of exercising good judgment, strong analytical abilities, and conceptually skilled
• Knowledge of business: Knowledge of industry and other technical matters
• Emotional Maturity: well adjusted, does not suffer from severe psychological disorders.
• Others: charisma, creativity and flexibility

Behavioral Approach to leadership

• Behavioral Leadership is a study of the actions, or behaviors, that define a leadership style.  This theoretical approach to understanding leaders creates categories of styles, which are aligned with the actions the leader may take, or the methods they use to reach their goals.
• Trait research provides a basis for selecting the ‘right’ persons to assume formal positions in groups and organizations requiring leadership. In contrast, if behavioral studies were to turn up critical behavioral determinants of leadership, we could train people to be leaders. 
• The difference between trait and behavioral theories, in terms of application, lies in their underlying assumptions. Trait theories assume leaders are born rather than made. However, if there were specific behaviors that identified leaders, then we could teach leadership we could design programs that implanted these behavioral patterns in individuals who desired to be effective leaders. 
• This was surely a more exciting avenue, for it meant that the supply of leaders could be expanded. If training worked, we could have an infinite supply of effective leaders. The three leadership behavior studies that attempt to identify the leadership behavior are explained below.

         Ohio State Studies

• The Ohio State studies utilized the Leader Behavior Description Questionnaire (LBDQ), administering it to samples of individuals in the military, manufacturing companies, college administrators, and student leaders. Answers to the questionnaire were factor-analyzed to determine if common leader behaviors emerged across samples. The conclusion was that there were two distinct aspects of leadership that describe how leaders carry out their role.
• Two factors, termed consideration and initiating structure, consistently appeared. Initiating structure, sometimes called task-oriented behavior, involves planning, organizing, coordinating the work of subordinates and high productivity or performance. Consideration involves showing concern for subordinates, being supportive, recognizing subordinates' accomplishments, providing for subordinates' welfare and teats subordinate fairly.

    University of Michigan studies.

• The Michigan leadership studies took place at about the same time as those at Ohio State. Under the general direction of Rensis Likert, the focus of the Michigan studies was to determine the principles and methods of leadership that led to productivity and job satisfaction. The studies resulted in two general leadership behaviors or orientations: an employee orientation and a production orientation. Leaders with an employee orientation showed genuine concern for interpersonal relations. Those with a production orientation focused on the task or technical aspects of the job.
• The conclusion of the Michigan studies was that an employee orientation and general leadership behavior instead of close supervision yielded better results. Employee orientation leader are associated with high group productivity and higher job satisfaction than production oriented leaders.

     The Managerial Grid:

• One concept based largely on the behavioral approach to leadership effectiveness was the Managerial (or Leadership) Grid, developed by Robert Blake and Jane Mouton. The grid combines "concern for production" with "concern for people" and presents five alternative behavioral styles of leadership. An individual who emphasized neither production nor people was practicing "impoverished management" according to the grid. If a person emphasized concern for people and placed little emphasis on production, he was terms a "country-club" manager.
• Conversely, a person who emphasized a concern for production but paid little attention to the concerns of subordinates was a "task" manager. A person who tried to balance concern for production and concern for people was termed a "middle-of-the-road" manager.
• Finally, an individual who was able to simultaneously exhibit a high concern for production and a high concern for people was practicing "team management." According to the prescriptions of the grid, team management was the best leadership approach. The Managerial Grid became a major consulting tool and was the basis for a considerable amount of leadership training in the corporate world.
• The five different leadership styles found in the managerial grid are presented below:

1. Country Club Leadership - High Concern for People/Low Concern for Production 
• A country club leader is mostly concerned about the needs and feelings of his/her employees or team members. This leader probably supposes that members of the organization will work hard if the feel happy and secure. However, production may suffer under this leadership style, and the effectiveness of the organization may suffer due to a lack of direct supervision and control.
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2. Task Leadership - High Concern for Production/Low Concern for People 
• A task leader is very concerned about production effectiveness, and probably sees workers as means to achieve great results. This leader also sees workforce needs as secondary to the need of a productive and efficient workplace. He/She might have very strict and autocratic work rules, and perhaps views punishment as the best motivational force.
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3. Impoverished Leadership - Low Concern for Production/ Low Concern for People
•  This leader is very ineffective. The leader has neither a high regard for creating efficient systems or rules to structure work processes, nor for creating a motivated or satisfied work environment. The result of this leadership style could be a highly disorganized workplace with low satisfaction and motivation.
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