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The title of the story is a young fake character as “Charles” it has been written by Shirley Jackson.

Laurie got admission in the Kindergarten School at the age of five years. He had first started to go to school wearing blue jeans with a belt accompanied with a next door older girl. Apparently like other children of his age he was not pleased to attend the school. On returning from the school on the very first day he shut the door with a bang and threw the cap on the floor and shouted in harsh manner “Isn’t any body here”. At lunch he spoke insolently to his father and also spilt milk of his baby sister. Even then his parents still thought him a well behaved lad.

To add the misery his small devilish mind created an imaginary classmate namely. Charles who is naughty, rude carless, noisy and trouble creating boy. Thus whatever problematic and naughty activities Laurie did in his school he related them to the fake character Charles. Each day when he returned home he brought a new report about Charles which he had done in the class room. Charles yelled in the class room. Charles hit or kicked the teacher. Charles hit a boy and made him cry or he made a girl say a bad word twice and he himself uttered bad words in the class room. He used to report Charles’s misdeeds in such a way that his parents were convinced that there existed a devilish child namely Charles who had created a kind of terror in the Kindergarten school.

One day Laurie told his parents that Charles was behaving well in the class and he was also helping his teachers with her work. Laurie told so much to his parents that they were eager to meet Charles’s mother. They wondered how Charles’s mother managed such a mischievous boy. Parent teacher meeting are regularly conducted in school for discussion of the progress of the students. When parent teacher meeting was called in the school Laurie’s mother visited his son’s school. She tried to locate Charles’s mother to express her sympathizing emotions, but in vain. Later on she was surprised to know that there was no Charles at Kindergarten school. It is Laurie who made some problems for teacher but after words he behaved well. It was actually Laurie who invented the character of Charles to express his inner desire in the character of Charles.

MORAL OF THE STORY.
Its moral is that “Extra affection spoils the child” Further parents should not believe every thing what our children tell us. They should keeps a check on them in order to know their activities.

‘COMMUNICATION is the transference of information and understanding its meaning’. Without understanding its meaning means there is no communication or its failure. “Communication is a process in which sender encodes/ prepares a message (words, sentences or symbols), uses a channel to transfer the message (such as face-to-face talk, telephone, email, memos, letters, flyers, bulletins, general reports etc), the receiver receives and decodes or understands the message, and provides feedback/ response”. The advancement in science and technology and globalization are a direct result of effective communication. Business communication paves the way for success of an organization. For better results, managers use communication techniques and devices to interact effectively with individual workers and groups; they make employees understand what is expected from them, motivate them, provide mentoring/ coaching, and receive feedback on accomplishing desired objectives.

COMMUNICATION SKILLS
Four key skills of communication include reading, writing, speaking & listening skills. Managers need to specialize in all such skills. An understanding of grammar and vocabulary improve communication skills. Reading proficiency improves when we read faster i.e. scan information, read for main ideas, find links between ideas or associate things, classify and summarize things, recall important things, and continually keep recalling and reading. Writing skills improve with calligraphy and repeated practice. Writing with a forward hand movement and writing small letters increases speed. Speaking skills require pausing pauses or breaks of comma and full stop while speaking, same as in writing. One’s voice should be reasonably loud, clear, having decent tone, and speed. Presentation skills or public speaking requires thorough practice in front of a wall or mirror and the appropriate dressing and right body movements also count, such as the person delivering a presentation should gradually notice every one sitting in the hall. Effective listening skills are summarized later in this chapter.

FUNCTIONS OF COMMUNICATION
Four major functions of communication within a group or organization are: sharing information, emotional expressions (such as praising some one or providing reprimands), motivating others, and controlling others (such as offering guidelines).

SOURCES OF MISCOMMUNICATION/ BARRIERS TO EFFECTIVE COMMUNICATION
The barriers of effective communication include interruption of voices or noise, inappropriate language or grammar, vague or unclear words, using complex and double meaning words, poor writing, and so on. Two other examples are filtering and selective perception. Filtering is manipulation of information so that receiver sees it more favorably, or from sender’s point of view. For instance, an employee exaggerates or artificially improves the result of a task so that boss favors him. Selective perception is about understanding the message only from receiver’s point of view. For instance, the boss focuses only certain areas of report and neglects the rest.

NONVERBAL COMMUNICATION
It includes the messages conveyed through body language/ movements, such as eye movements, smile, overall facial expressions, movements of hands and head and the physical distance. This is the oldest form of communication, which is still used globally. Dumb people have a special type of body language. “Kinesics is the study of body motions”. In many parts of the world, people make a reasonable distance between each other while standing side-by-side. If a person comes very close to another person without a proper reason, it is considered as unethical or offensive.

COMMUNICATION CHANNELS WITHIN ORGANIZATION
The three major channels of communication within an organization include:
1. Downward Communication: It is the flow of communication from top management to lower management and works.
2. Upward Communication: It is the flow of communication from lower management and workers to upper management, i.e. vice versa to downward communication.
3. Lateral Communication: It is the flow of communication between same level of authority groups, or peer groups, such as top management to top management or workers to workers.

FORMAL & INFORMAL COMMUNICATION
The formal communication takes place between departments, task groups, committees, and the informal communication takes place between friend circles within the organization, which does not follow any chain of authority. It’s also called the communication grapevine.

CORPORATE COMMUNICATION
It deals with handling all sorts of letters, memos, complaints, suggestions, reports, and any other sort of communication with the stakeholders of an organization, such as stock holders, customers, suppliers, dealers, government agencies, society, etc. This is done by either a corporate communication manager or company secretary in his/her absence.

PRINCIPLES OF EFFECTIVE LISTENING
The core principles of effective listening are delineated hereunder:

1. MAKE EYE CONTACT. How do you feel when somebody doesn’t look at you when you’re speaking? You are likely to interpret this as aloofness or disinterest.

2. EXHIBIT AFFIRMATIVE HEAD NODS AND APPROPRIATE FACIAL EXPRESSIONS. The effective listener shows interest in what is being said and reacts through body expressions.

3. AVOID DISTRACTING ACTIONS OR GESTURES. The other side of showing interest is avoiding actions that suggest your mind is somewhere else. When listening, don’t look at your watch, shuffle papers, play with your pencil, or engage in similar directions. They make the speaker feel you’re bored or uninterested.

4. ASK QUESTIONS. The critical listener analyzes what he or she hears and asks questions. The behavior provides clarification, ensures understanding, and assures the speaker you’re listening.

5. PARAPHRASE. Paraphrase means restating what the speaker has said in your words. The effective listener uses phrases like, “What I hear you saying is . . .” or “Do you mean . . . ?”

6. AVOID INTERRUPTING THE SPEAKER. Let the speaker complete his or her thoughts before you try to respond. Don’t try to second-guess where the speaker’s thoughts are going. When the speaker is finished, you’ll know it! This is also called pre-judgment or jumping at the conclusion.

7. DON’T OVER TALK. Most of us would rather speak our own ideas than listen to what someone else says. The good listener recognizes this fact and doesn’t over talk.

8. MAKE SMOOTH TRANSACTIONS BETWEEN THE ROLES OF SPEAKER AND LISTENER. From a listening perspective, this means concentrating on what a speaker has to say and practicing not thinking about what you’re going to say as soon as you get your chance.

A group is defined as two or more individuals that interact and become interdependent on each other to reach particular objectives. Formal groups are those formed by the management to work on designated assignments. Examples of formal groups are departmental teams, interdepartmental or cross functional teams, committees, task force or tasks groups, made to complete a task, missions, delegations, commissions, etc. Informal groups are those alliances formed unofficially or without any consent of management. A group of five employees meeting regularly and doing lunch together is an example informal group. Other examples include interest groups, sharing common interests, such as playing badminton or blowing alley; and friendship groups, frankly interacting with each other.

WHY DO PEOPLE JOIN GROUPS?
Some key reasons are delineated hereunder:

1. SECURITY: By joining a group, individuals reduce their insecurity of standing alone. They need help of others to protect and promote their interests.

2. AFFILIATION: People join groups to make friendly relations with others and socialized with each other.

3. STATUS, POWER & SELF-ESTEEM: By joining a group, people can gain recognition or status, power or worth in society, and self-respect in their own eyes.

4. GOAL ACHIEVEMENT: There are many tasks that individuals can’t achieve alone, so they form groups.

SOCIOMETARY: ANALYZING GROUP INTERACTION
People in organizations form informal groups in departments and sub-departments, but managers want to know about their informal groups. How might these groups affect communication and performance within the organization or they create potential conflicts or in intrigues? To get answers to these questions, managers use the techniques called sociometry. “Sociometry is an analytical technique for studying group interactions. “ Through the use of interviews or questionnaire, employees are asked: 1) With whom within the organization they would like to work to complete their jobs? 2) Name several members of the organization with whom you want to spend free time? There are many similar questions help understanding group interactions.
This information is then used to create a sociogram, a diagram that graphically maps the preferred social interactions obtained from interviews or questionnaires. Some key terms concerned with sociogram include the following:

1. Social Networks: These are linkages between members of a society.
2. Clusters: Groups that exists within social networks.
3. Prescribed Clusters: Formal groups like departments, teams, task forces, committees, etc.
4. Isolates: Individuals who aren’t connected with the social network.

ADVANTAGES & DISADVANTAGES OF GROUPS
The advantages of making groups within organizations include:
1. Increased cooperation and coordination/ team work among members
2. Increased support of each other
3. Collective efforts for goal accomplishment
4. Increased innovative ideas and problem solution approaches.

The disadvantages of making groups within organizations include:

1. Delayed decisions in groups, particularly when the group size is big
2. Difficulty in reaching at consensus
3. Domination by the few members
4. Ambiguous responsibility; although group members share responsibility, but who is liable or accountable for the final outcome? The solution is to appoint or elect group leader to get the desired results.

GROUP DECISION MAKING
The most common practice in making group decisions is face-to-face meetings or interactions. Other four salient techniques are as under:

1. BRAIN STORMING: A group of people sit together and share ideas; everyone is allowed to express all the ideas that appear in their mind without any assessment or criticism on their ideas. The purpose is to collect maximum number of ideas and evaluation or screening of ideas is done in the next stage. The technique is used in planning, problem solving, and decision making.

2. NOMINAL GROUP TECHNIQUE: A group decision making method in which individual members meet face-to-face to pool their judgments, discuss and evaluate ideas, rank the feasible ideas (on paper, etc), and the final decision is made by selecting the idea with the highest aggregate ranking.

3. DELPHI TECHNIQUE: A group decision making method in which individual members pool their judgment by filling a questionnaire.

4. ELECTRONIC MEETING: Group members sit in a meeting hall, usually around a horse-shoe shaped table with computer terminals connected with each seat and a projector displayed on a wall; members write their ideas and suggestions on the computer screen, the information is shared electronically to all members, evaluated and decided with consensus.

TEAM WORK
Team work serves as a better way to utilize employees’ talent, train and develop their skills. Teams are more responsive and flexible to changing events. It is important to train team members, polish their skills, direct them thoroughly about their jobs or responsibilities before assigning them core tasks, provide them required information and resources, continually monitor them, and provide feedback. The right approach is not to offer reprimands to team members when they commit first mistake but to observe and praise them generously when they commit first right thing.

QUALITIES OF TEAM MEMBERS
Some of the team members tend to be creators or innovators of new ideas, some are good assessor or experts in analytical skills, others are good forecasters, some are critics, while positive criticism is welcomed and negative criticism discourages members, some are motivators, some are experts in making right decisions and problem solutions, while others are result-oriented. The right mix of qualities of team members result in superior performance.

TEAMS & TOTAL QUALITY MANAGEMENT
Total quality management (TQM) is a management philosophy about managing the quality of products and entire systems of an organization, while focusing on customer satisfaction, employee involvement, and continuous improvement in quality, as the three principles for maximizing quality.
The quality system involves employees’ suggestion and complaints and stresses non-stop improvements whether smaller or greater but regular improvements. These concepts will be utilized for better product design and process design. Firms must do purchasing or procurement of raw materials, accessories and supplies carefully/ diligently to assure maximum quality output of goods. Firms also set benchmarks of quality to be met. Benchmarks are also called standards, parameters, yardsticks, or hallmarks. For instance, a benchmark of a fast food restaurant may be to serve an average customer orders within seven minutes; a standards of a top quality car may be to stay defect less till driving of 100,000 kilometers subject to appropriate use by the driver; a parameter for a biscuit manufacturing plant may be to produce 100,000 biscuits in an hour, while the variation in that standardized amount will be called high or below standard. The other examples of benchmarks include cost per unit, revenue per unit, return on investment, customer retention level, etc.

FORD MOTOR’S APPROACH ON QUALITY & PROBLEM-SOLVING TEAMS
Ford’s management identified five goals for better quality and problem solutions:
1. team should be small enough to be efficient and effective;
2. be properly trained on skills they will need;
3. be allocated enough time to work on the problems they plan to address;
4. be given the authority to resolve the problems and implement corrective actions;
5. each team has a designated ‘champion’ whose job is to help the team in getting ahead of the roadblocks that arise.
The only deficiency of the approach is, along with time, team members should be provided sufficient information and resources to get the job done.

WHAT IS MOTIVATION?
In simple words, motivation is to influence or persuade some one to do a favor or a desired thing. “Motivation is defined as the willingness to exert high level of effort to achieve individual or organizational needs or goals.” Another definition is, “motivation is the injection of spirit to accomplish a goal.” Think of situations when people put extra efforts to work. Not sleeping for the whole night is painful but you cheerfully take that pain when you do entertaining activities like enjoying late night parties with friends, attending marriages or Eid festivals. Studying course books may create boredom for you but studying an interesting novel for long hours may not feel difficult. This is motivation. Similarly working hard to complete projects or assignments of an organization within due course of time and achieving financial rewards like bonuses or pay increments can be great motivations.

EARLY THEORIES OF MOTIVATION
The decade of 1950 was fruitful in the development of motivation concepts. Some of the major theories are depicted hereunder:

1. HIERARCHY OF NEEDS THEORY: The theory was developed by Abraham Maslow, which is the most well-known theory of motivation. Maslow hypothesized, that within every human being there exists a hierarchy of five needs, as each level of need is satisfied, it progresses to next higher level of need. “There is a hierarchy of five needs (i.e. categories of human needs) including physiological, safety, social, esteem, and self-actualization needs, as each need is sequentially fulfilled, the next need at higher level arises or becomes dominant”.

i. PHYSIOLOGICAL NEEDS: They include hunger, thirst, shelter, sex, sleep, and other physical needs, without which a person can’t survive.

ii. SAFETY NEEDS: They include safety and protection from physical and emotional harm, like being secure at ones home.

iii. SOCIAL NEEDS: They include affection, belongingness, acceptance, and friendship, as individuals start socializing or making social relations with others.

iv. ESTEEM NEEDS: They include internal and external esteem; internal esteem includes self-respect, autonomy (of work), and achievement (of other basic needs); and external esteem includes status, recognition, and attention (by others).

v. SELF-ACTUALIZATION NEEDS: They include the drive or desire to reach at the top or achieving all what one is capable of, including growth, prosperity, and self-fulfillment.

2. THEORY X AND THEORY Y:

3. MOTIVATION HYGIENE THEORY: This theory was proposed by the psychologist, Frederick Herzberg. The theory believes that an individual’s attitude toward work determines his/ her success or failure. Herzberg asked people when they felt good or bad at their jobs. The responses of the 12 investigations were tabulated and categorized. Herzberg presented “hygiene factors, the factors such as company policy and administration, supervision, and salary, when these factors are adequate at job, people will not be dissatisfied”. The theory became very popular in mid 1960s.

The extrinsic factors that caused dissatisfaction include company policy and administration, supervision, relations with peers and subordinates, status, security, and personal life (which is indeed an intrinsic factor but that can cause dissatisfaction due to personal problems). The intrinsic factors that can cause great satisfaction include achievement, recognition, work itself, responsibility, advancement, and growth.

4. ERG THEORY: Clayton Alderfer reworked Maslow’s hierarchy of needs theory to align it with empirical research. He labeled it as ERG theory. “ERG theory suggests that there are three groups of core needs: existence, relatedness, and growth (ERG)”. The existence needs relate with materials existence requirements, to which Maslow considered as physiological and safety needs. The relatedness needs relate with social needs and the growth needs relate with esteem and self-actualization needs; when individuals wish to achieve growth and promotions, they look for status and quality of life.

5. GOAL SETTING THEORY: “The theory suggests that specific and difficult goals lead to higher performance.” The advanced concepts in goal setting are ‘SMART goals’. The goals should be SMART (specific, measurable in quantity and quality, achievable i.e. reasonably tough but not impossible, realistic, and time bound).

6. REINFORCEMENT THEORY:

7. EQUITY THEORY: “The theory suggests that individuals compare their job inputs (such as efforts) and outcomes (such as rewards) with those of others and then try to eliminate any inequities”. For instance, a fresh MBA, Alic receives a job at a mid-size company at a salary of Rs25000 per month but his collogue Huma is later hired in the same company for Rs30000 salary per month. Alic considers this as injustice, inequality, and discrimination because they both have roughly the same level of professional competencies; both are MBAs with similar levels of prior experience of two years; and with same kind of abilities. The inequality leads to negative attitude, decreased motivation, decrease input of efforts and quality of output, and eventually leaving the job. Similarly, employees compare their professional qualification, skills, experience, and other career developments, and the rewards with those of others in the company or industry, or other industries.

8. EXPECTANCY THEORY: “The theory suggests that the strength to achieve a goal/ action depends on the level of expectation that the goal/ action will lead to a desirable reward or satisfaction.” Furthermore, there is a relationship between effort and performance, performance and reward, and reward and personal goals.


APPLICATIONS OF MOTIVATION
Our discussion will now focus applications of various concepts of motivation.

1. MANAGEMENT OF OBJECTIVES (MBO): An extension of goal-setting theory is management by objectives (MBO). Peter Drucker, a management guru invented MBO program that is installed world wide in various organizations. “MBO is a program that encompasses specific and measurable goals, set with workers’ participation, time bound, and takes feedback on goal progress”. Some examples include: it’s not adequate to merely order to cut cost, improve service, or increase quality. Such orders should be converted into tangible objectives, such as, cut cost by 5%, process all telephonic orders within 24 hours, and ensure improved quality by keeping sales returns to 1% of total sales.

2. EMPLOYEE INVOLVEMENT: A complete program for employee involvement includes changing organizational culture, fostering individual development through training, establishing awards and incentives, and encouraging team works. Employees are great assets or human capital of an organization but some consider them as liabilities and avoid interacting with them. Employees should be encouraged to meet regularly to discuss and suggest any smaller or larger positive changes or improvements in the workflows or products, identify and solve problems, make complaints, and suggest innovative products and even ideas for inventions. One of the leading cause of success of Japanese companies was their involvement of employees in problem solutions and decision making. Participative management is also a similar concept.

3. PROBLEMS-SOLVING TEAMS/ QUALITY CIRCLES: This very famous technique was invented in Japan in 1920 and became popular worldwide. These teams consists of 5 to 12 people drawn from various areas of a department who meet regularly to identify, analyze, and solve production and quality related problems. The philosophy behind this approach is that the people who are directly responsible for making quality products or providing services will be most able to resolve a problem. The teams are assigned a particular task such as improving assembly line in a computer manufacturing plant or reducing time for credit application processing. Finally, the team (quality circles) passes suggestions to management to reduce cost, defects, wastage and time, and improve quality and productivity.

4. CONTINUOUS IMPROVEMENT/ KAISEN: The Japanese philosophy of management Kaisen became popular world-wide, which seeks to continually find ways to improve operations. The theory suggests that no single day should go without some kind of improvement, whether smaller or larger. It involves identifying benchmarks of quality excellence and instilling a sense of employee ownership of the process. The ultimate goals of kaizen are improving quality and productivity by reducing cost and wastage i.e. accomplishing the goals of efficiency and effectiveness.

5. VARIABLE PAY PROGRAMS: The concept suggests that employees should not only be rewarded a fix pay against some specified work but they should enjoy extra rewards from extra efforts. A profit-sharing plan allows workers to participate in additional profit if the company crosses a pre-established benchmark of profitability, such as one bonus salary for all, if the company makes a 40% profit this year. A gain-sharing plans allows workers to participate in additional profit if the company reduces it cost particularly wastage by some specified percentage.

6. EMPLOYEE OWNERSHIP PLANS: These are designed to provide stock/ shares of the company to employees in order to encourage employees and make them feel like owners of the company.

7. SKILL-BASED PAY PLANS: It is rewarding extra to highly skilled people like more qualified, or highly experienced professionals, or intelligent people.

8. FLEXIBLE BENEFIT PLANS: It is empowering employees to pick and choose benefits from a menu of benefits, for example, choosing a bonus check, or paid holiday trip, or availing family health insurance.

9. MOTIVATING TEMPORARY WORKERS: The temporary workers, ad hoc or contractual employees also need to be motivated as their performance benefits the organization in attainment of its objectives.

10. MOTIVATING DIVERSIFIED WORKFORCE: The needs of women, singles, immigrants, senior citizens, and physically disabled people are not the same as of regular employees. They should be motivated too keeping in view their specific needs and attitudes.

PERCEPTION is the process of understanding things on the basis of our knowledge, beliefs, observations, and experiences. Our social circle, culture, and environment also influence our perceptions about various elements. How individuals perceive about the nature of their job, pay, the organizational processes and functions, the co-workers, and the top management leave a significant impact on their behavior. For example, if people at shell positively perceive their jobs, pay, organizational processes and functions, co-workers, and top management, it might enhance their interest in work and help improve their capacity and performance.

PERSONAL PERCEPTION: MAKING JUDGMENTS ABOUT OTHERS
How people judge others? Some salient theories and methods are delineated below:

1. ATTRIBUTION THEORY: When individuals observe others’ behavior, they attempt to determine whether it has happened from internal causes or external causes (reasons). Internally caused behaviors are believed to be under the control of an individual and externally caused behaviors are believed to be under the control of external forces or events. For instance, if your supervisor is late at work, you might believe, he is lazy, i.e. internal attribution. But if you know that he is late because of a major automobile accident that tied up traffic, you might ignore the situation, i.e. external attribution. Fundamental attribution error is the tendency to underestimate the influence of external factors and overestimate the influence of internal factors when making judgments about behavior of others. For instance, if a sales manager only attributes declining sales to a sales rep’s performance but ignores noticing launch of innovative brands by rivals will be a fundamental attribution error. Another error is self-serving bias, which is the tendency to attribute our own success to internal factors while blaming external factors for failures. Many arrogant managers exhibit this kind of perception.

2. SELECTIVE PERCEPTION: People selectively interpret what they see based on their interests, backgrounds, experiences, and attitudes. This is the way managers and workers see each others.

3. HALO EFFECT: It is drawing a general impression about an individual based on a single characteristic, such as dressing, physical look/ appearance, sociability, or intelligence. However, first impression should not be the last impression.

4. CONTRAST EFFECT: It is evaluation of a person’s characteristics by comparing them
with that of other people on the similar rank/ position. In performance evaluation during interviews or work assignments, contrast effect is used.

5. PROJECTION: Projection is attributing one’s own characteristics in others. If the boss is honest and trust worthy, she believes every one is honest and trust worthy.

6. STEREOTYPING: Stereotyping is judging the people on the basis of the groups to which they belong. For instance, if Sara is a member of an elite club, a royal family, or a rich friend circle, she is considered to be rich or a moneyed woman. Stereotyping is often used in recruitment and assigning new responsibilities to people. If a sales manager wishes to fill a sales position, she might hire someone who is young because she stereotypes that young people tend to be ambitious, hard-working, needy, and skilled. In organizational settings, we often comment that represent our stereotypes about age, sex, over weight, and nationality. Examples include, old-aged people can’t learn new skills; women workers won’t relocate or get transfers to other branches; over-weight people lack discipline; and Bangladeshi labor is truly hard-working.

VALUES
Values are a set of principals, beliefs, or pre-established opinions about various things. For example, some employees have values to work honestly because honesty is the best policy. Some workers exhibit loyalty with their employers, respect their seniors, and try to be indispensable ingredient for their organization. On the other hand, there are people that value money and self interests above all other things. Interviewers at recruitment and managers try to explore the values of individuals to find their work related interests.

VALUES AT WORKPLACE, LOYALTY, AND ETHICAL BEHAVIOR
Values at workplace reflect the disciplinary principles set by the management. Ideally, employees’ values and ethics expressed from their behavior should be loyal to work and the organization, which must not be harmful and contrasting to the ethical principles, set by the organization and society.

ATTITUDES
“Attitude is the way we think and believe. Or attitude is the judgment or evaluation of people, objects, events and states.” Our attitude influences our behavior on the basis of our thinking and beliefs. Our attitude on many issues or as a whole can be positive or negative from the judgments or attitudes of others. But we should respect the positive values of society when forming our attitudes. The three types of attitude include:

1. Cognitive component of attitude: It is the opinion or belief segment of attitude.

2. Affective component of attitude: It is the emotional or sentimental segment of attitude.

3. Behavioral component of attitude: It is the behavioral segment of attitude.

Cognitive Dissonance Theory: Leon Festinger presented this theory in late 1950s, which explains the linkage between attitude and behavior. Dissonance means inconsistency. “Cognitive dissonance refers to any incompatibility between an individual’s attitude and behavior”. The distance leads to disturbance or an internal discomfort, which need to be removed. For instance, an industry’s waste is dumping in a nearby lake. Manager Cena seems worried and feels an internal discomfort because his attitude does not favor this act leading to polluting the environment. But he can’t do any thing because management wants to save resources that would be spent on scientifically disposing the waste. Cena now has some choices: 1) to raise his voice calmly or peacefully; 2) to protest in front of top management; 3) to resign from his job; or 4) to ignore this issue and reduce his dissonance by thinking that the better quality products offset the dangers to the environment.

MEASUREMENT OF BEHAVIORS OF INDIVIDUALS
The behaviors of individuals during work can be measured in a number of ways, such as through surveys that include interviews and questionnaires and other research techniques like projective techniques and mechanical instruments to evaluate and understand the perceptions, values, attitudes, and behaviors of employees with the ultimate aim of enhancing their performance.

DECISION MAKING
People make different decisions in different situations based on their perceptions, values, attitudes, and environmental forces or pressures. The decision making process includes five major steps:

i. Identify and select a problem or opportunity;
ii. develop alternatives;
iii. choose the best alternatives;
iv. implement the alternate;
v. evaluate and modify if necessary.

JOB SATISFACTION
Job satisfaction is the state of being content or happy at a job. It is generalized that job satisfaction leads to greater performance, efficiency, and effectiveness. Other benefits/ advantages of job satisfaction include: increased productivity, motivation, complying disciplinary policies, loyalty, decreased absenteeism and turnover. The dis-benefits/ disadvantages of job satisfaction include: decreased productivity, non-compliance/ neglecting disciplinary policies, disloyalty, and increased absenteeism and turnover or exit from jobs.

ENHANCING JOB SATISFACTION: Job satisfaction can be enhanced in numerous ways.

1. ATTRACTIVE PACKAGES/ REWARDS: In furtherance of the fact that ‘money is the main motivator’, the research explores pay/ package as the number one factor determining job satisfaction. The contemporary packages include salary, house rent, automobile allowance, and many other perks/ fringe benefits including paid leave, paid vacations, elite club memberships, etc.

2. ENVIRONMENT & IMAGE OF THE ORGANIZATION: The image or corporate goodwill and its internal environment, such as decor and staff behavior pave the way for job satisfaction.

3. GROWTH & DEVELOPMENT OPPORTUNITIES: Chances to receive promotions, availing training and development opportunities also greatly influence job satisfaction.

4. MENTALLY CHALLENGING WORK: Very simple and repetitive tasks without a variety create boredom, frustration, and limits one’s skills and abilities. But a variety in tasks, job rotation, and reasonably challenging work generate pleasure and satisfaction.

5. EQUITABLE REWARDS (WITHOUT ANY DISCRIMINATION), SUPPORTIVE COLLEAGUES, AND SUPPORTIVE WORKING CONDITIONS: These three elements also tend to be great satisfiers. Supportive working conditions include providing adequate equipments and tools, clean environment, controlled temperature, noise and pollution free environment, and modern facilities.

How behavior of individuals forms or takes shape? What motivates them for superior performance and greater job satisfaction? These are the questions of particulars interest to managers. Managers need to know individual behavior (actions) in the context of an organization. Four of the utmost important elements of individual behavior are: biographical characteristics, ability, personality, and learning.

BIOGRAPHICAL CHARACTERISTICS: Out of many physical or personal characteristics, some are especially significant and can be traced from employees’ curriculum vitae (CVs) and personal records.

1. AGE: Age of an employee has a significant impact and performance. It is envisaged that younger people are more energetic, skilful and talented than older people. The belief is true but this is not always true because in many cases, older people are highly skilled, regularly updating their skills, well-experienced, persistent, and even physically and mentally fit.

2. SEX/ GENDER: Do males perform better then females? The research reveals, no. Females do not perform less then males, if they are equally trained or having similar capabilities.

3. MARTIAL STATUS: The scientific studies undercover that married people are more responsible, persistent in nature and undergo less absence and turnover and are more satisfied from their jobs because marriages cause them to accept new responsibilities.

4. NUMBER OF DEPENDANTS: The greater the children or other dependants a person has, the lesser is the concentration on work. It has been observed in most cases, that many times, employees especially females with huge children or other persons, such as relatives as dependants make leaves to take care of the schooling and hospitalization needs of their dependants.

5. TENURE: Switching jobs or companies is not a big deal/ problem, rather it may be a result of serious need to leave a problematic company or to avail a better opportunity. But the persons that show greater stay (of years) on a job show their persistent nature and an indication of their satisfactory performance.

ABILITY
Ability is the capacity to perform a work or action. A lawyer has the ability to defend legal suits in the court. A swimmer has the ability to swim in the oceans. Two types of ability include:

1. PHYSICAL: It is the ability to perform various physical works. For instance, a body builder and a commando have the vigor/ power and stamina to lift heavy weight and do intense physical work.

2. INTELLECTUAL: It is ability to perform various mental tasks accurately. SAT is a test to evaluate intellectual ability of under graduate/ graduate students. Similar tests include ACT, GMAT for business graduates, LSAT for lawyers, MCAT for medicines, and so on. Other examples of intellectual ability include:

i. NUMBERS APTITUDE: Ability to do speedy and accurate arithmetic.

ii. VERBAL COMPREHENSION: Ability to understand what is read or heard.

iii. PERCEPTUAL SPEED: Ability to identify similarities and differences between things.

iv. INDUCTIVE REASONING: Ability to identify a logical sequence in a problem in order to solve it.

v. DEDUCTIVE REASONING: Ability to use logic (i.e. logical reasoning) and assess the implications or connections of an argument.

vi. SPATIAL VISUALIZATION: Ability to imagine/ visualize how an object would look if its position and place were changed. For example, an interior designer plans to redecorate her office.

PERSONALITY
Personality is a set of distinct characteristics of an individual. Some people tend to be emotional, others intellectual, bold or timid, hesitant or confident, reserved or social, etc. Personality is shaped from heredity and culture and environment, which lead to personality traits.

i. HEREDITY: Heredity refers to those factors that were determined at conception (expectancy time of a female), for instance, physical stature/ structure, facial attractiveness, skin color, hair color, muscles composition, energy level, height, built, sex/ gender, temperament, and so on. Heredity is a transformed from molecular structure of genes located in the chromosomes. Moreover, our parents or forefathers’ genes determine our biological, physiological, and psychological make-up.

ii. CULTURE & ENVIRONMENT: Culture is a set of values, norms, customs, traditions, rituals, and attitudes passed from one generation to the other. The norms of our family, friend circle, and social groups influence our behavior. Environment also impacts our personality; the person groomed in highly educated society tends to be well-educated, well-mannered, and gentle. Pathans are industrious, competitive, and result-oriented but aggressive in nature.

iii. PERSONALITY TRAITS: Personality traits or characteristics include shy, confident, aggressive, submissive, dominant, lazy, ambitious, disloyal, loyal, timid, bold, reserved, outgoing/ social, imaginative, practical, group-dependant, and self sufficient.

iv. MYER-BRIGGS TYPE INDICATOR (MBTI): One of the most widely used personality tests in USA is MBIT, which comprises of 100 questions to identify an individual’s personality from a group of 16 personality types. For more references, see books and internet.

v. THE BIG 5 MODEL: The research supports five major personality traits.

A. EXTRAVERSION: These people are extraverts/ sociable and talkative.

B. AGREEABLENESS: These people are cooperative and trusting.

C. CONSCIENTIOUSNESS: These people are responsible, persistent, and achievement-oriented.

D. EMOTIONAL STABILITY: These people are confident, enthusiastic, un-depressed, and not nervous.

E. OPENNESS TO EXPERIENCE: These people are bold, practical and venturesome.

vi. LOCUS OF CONTROL: Some people believe they are masters of their own fate/ destiny, and other believes in luck or chance. Individuals who believe that they control what happens to them are called “internals” and the individuals who believe that what happens to them is controlled by outside forces, such as luck or chance are called “externals”.

vii. SELF-ESTEEM: It is the individual’s degree of liking or disliking of oneself. In OB, it is generalized that people with high self-esteem (high-SE) are choosy in selection of jobs and strive to be result-oriented. On the contrary, people with low self-esteem (low-SE) are dependant on others for guidance and control to get the job done.

viii. SELF-MONITORING: This is the ability to measure one’s own performance against some performance standards or benchmarks. Such people offer better results.
ix. RISK TAKING: It is the willingness to take risks or chances. Risk is the degree of failure or uncertainty. Risk taking managers are challenge-acceptors and fast decision-makers. Research proves that risk taking managers make rapid decisions with less information but surprising with greater accuracy of decisions.

x. PERSONALITY & NATIONAL CULTURE: In global corporations, recruiters evaluate the personalities of international managers and diversified workforce in terms of their suitability in national culture.

xi. MATCHING PERSONALITIES & JOBS: Recruiters try to fit the personalities of employees with their jobs, for instance, public relations officers and marketing personnel must be pleasant in behavior and gregarious/ social in nature.

LEARNING
Learning is defined as many permanent change in behavior as a result of observation and experience. The students who learn their courses and soon after exams, forget the courses is not learning. From OB point of view, learning is permanent and it changes behavior. For example, a typist can type fifty words a minute, after training, he can type eighty five words a minute, is learning. Some of the theories of learning are depicted below:

1. CLASSICAL CONDITIONING: A Russian physiologist, Ivon Pavlov made experiments on dogs. He presented meat to dogs, the dogs secreted saliva, then he merely rang the bell, the dogs did not salivate. After that he used to ring the bell before presenting meat to the dogs. The bell became stimuli to the dogs and they were salivated even when Pavlov only rang the bell but did not present the meat. So, finally the bell became conditional stimulus and the meat was an unconditioned stimulus, which caused the dogs to react in a specific way. Similarly, the sales reps and managers of Brookes Pharmaceutical are rewarded incentives on target achievement in their annual conference, so the sales-force prepares itself for the whole year to win the rewards of Rs4-5 lakhs. So, the reward becomes conditional stimulus and performance as unconditioned stimulus.

2. OPERANT CONDITIONING: It’s a type of conditioning in which desired behavior leads to a reward or prevents a punishment. For example, your boss tells you to work hard and make overtime before Eid and you will be rewarded. But when you do these things, you receive no incentives. There is no reinforcement of behavior, so next time when your boss instructs you the same things, you may decline. Reinforcement theory, also called operant conditioning is associated with the work of B.F skinner. The theory suggests that behavior is a function of its consequences. The behavior or performance that results in positive consequences, such as rewards is more likely to be repeated, while the behavior or performance that results in negative consequences, such as punishment is less likely to be repeated.

3. SOCIAL LEARNING: What we learn from our friends and family as a result of observations and experiments is called social learning theory.

4. METHOD’S OF SHAPING BEHAVIOR: There are four ways to shape behavior: through positive reinforcement, negative reinforcement, punishment and extinction. In positive reinforcement, managers reward desired behavior or performance. In negative reinforcement, managers show resentment or anger on undesired behavior or performance. For instance, employees wish to avoid the behaviors that managers dislike, coming late, being regularly absent, not wearing uniforms at work are few examples. Punishment for undesired behavior can result in verbal or written reprimands, pay cuts, loss of privileges, lay offs, and termination. Extinction is the withdrawal of reinforcement or the behavior that was rewarded earlier or reinforced in any way becomes extinguished. A true example that can be about those managers/ management that altogether discounts/ ignores the suggestions and recommendations passed by low-rank staff on various problems, which eventually leads to extinction or dying out of such practice (i.e. giving recommendations).

5. SCHEDULES OF REINFORCEMENT: The major types of reinforcements include continuous, fixed, variable interval, fixed ratio, and variable ratio reinforcement. Continuous reinforcement is rewarding behavior/ performance every time it occurs. Fixed interval is rewarding behavior/ performance at fixed intervals like, quarterly, biannually, and annually. Variables interval reinforcement is rewarding behavior/ performance some times but neither continually nor at a fixed schedule. Fixed ratio reinforcement is rewarding behavior/ performance on fulfilling fixed target, like producing 100 units of indigenous chocolates a day. Variable ratio reinforcement is rewarding behavior/ performance on fulfilling varying performance targets per period.

6. SELF-DISCIPLINE, MENTORING, AND TRAINING & DEVELOPMENT: Self-discipline is training about the moral behavior or ethical code of conduct like being regular and punctual, wearing uniform, respecting seniors, coworkers, and especially ladies. Mentoring or coaching (supervision/ overseeing) is also a kind of on-the-job training. Training imparts basic skills of a subject or job and development is the advancement in skills. In USA, companies spend more than $44 billion annually on employees training and development. Motorolla Company believes that when it spends $1 on training, in return, with in 3 years, it makes $30.

WHAT IS ORGANIZATIONAL BEHAVIOR?
“Organizational behavior (OB) is the study of human behavior (individuals and groups) in organizational settings with the ultimate objective of enhancing organizational effectiveness”. OB focuses on the interface between human behavior and organizations. It differs from management because it deals with only the behavioral aspect of managers and employees. OB ascertains/ investigates about the productivity of workers, relationship of rewards with performance, efficiency and effectiveness of employees while working with friendly and trust worthy bosses, absenteeism lobbying of groups, conflicts among workers and management, employees turnover, and so on. OB deals with not only profit-oriented business organizations but also with non-profit organizations like clubs, charities, associations, trusts, etc.

THE EMERGENCE OF OB
Most scholars would agree that OB emerged as a field of study in the late 1950s and early 1960s. The evolutionary period noticed simple assumptions to behavioral models, concepts, and methodologies by human relation. OB emerged as a scientific discipline as a result of Hawthorne studies and human relations movements.

THE HAWTHORNE STUDIES: The Hawthorne studies were conducted between ‘1927 to 1932’ at Western Electric’s Hawthorne Plant near Chicago. Harvard university faculty members and consultants participated in the studies. The major experiment studies the effects of different levels of lighting on productivity. The researchers manipulated one group of women workers and increased the lights of the production area, resultantly the productivity went up, when they reduced lights, there was no impact, and finally, when they made the light as dim as moonlight, productivity declined. The group’s performance was measured and compared with another group whose lighting remained unchanged.
In another major experiment, piecework incentive system was established for a nine-man group. The previous studies on management suggested that workers would individually work hard to minimize their individual income. But the experiment witnessed that people performed better in groups. Every member of the group was given an acceptable level of output as target by the team and they work harder to be accepted by the group.

HUMAN RELATIONS MOVEMENTS: Hawthorne studies led to the foundation of a new school of management thought, which was called as human relations movement. The two of the most famous human relation were Douglas McGregor and Abraham Maslow. McGregor stated that some managers believe in theory X takes a negative and pessimistic side of human nature and employee behavior. And managers that believe in theory Y takes a positive and optimistic side of human nature and employee nature.
Theory X assumptions include: 1. People do not like work and try to avoid it. 2. People don’t like work, so managers have to control, direct, coerce, and threaten employees to work for organizational goals. 3. People want to be directed and avoid responsibility.
Theory Y assumptions include: 1. People don’t dislike work; work is a natural part of their life. 2. People are internally motivated to reach objectives to which they are committed, but they want personal rewards. 3. People accept responsibility under favorable conditions. 4. People have the capacity to be innovative in solving problems. 5. People are capable but mostly, their potentials are under utilized.
Abraham Maslow’s theory assumes that motivation arises from a hierarchal series of needs. As the needs at each stage are satisfied, the individuals progresses to next higher level of needs. This topic/ theory will be discussed in detail in next chapter 4.

INTERDISCIPLINARY FOCUS OF OB
Organizational behavior takes output from various domains/ fields of study including psychology, sociology, social psychology, anthropology, political science, economics, engineering, and medicines.

PSYCHOLOGY studies behavior (actions, reactions, and changes) of humans and animals. Industrial and organizational psychologists study human behavior in the context of industries and organizations. Moreover, organizational psychologists and OB specialists study employee’s perceptions, learning, motivation, attitude, personality, decision making, job satisfaction, leadership qualities, and the like. Sociology is the study of social systems such as, a social class, a family, an occupation, a mob, or an organization. Social psychology blends the concepts of psychology and sociology; it measures the impact of societal values on our behavior. Anthropology is the scientific study of the origin, behavior, physical, social, cultural development, and religious beliefs of humans. Political science is the study of political systems such as governments i.e. their formation, laws, objectives, and governance. OB studies intra organization politics, individuals approach for power, decision making, coalition formation/ formation of groups and trade/ labor unions, conflicts with each other and management. Economics is the study of production, distribution and consumption of goods and services. Economics studies labor market dynamics, productivity, forecasting, and cost-benefit analysis. Engineering is the application of scientific and mathematical principles to the design, manufacture, and operation of efficient and economical structures, such as machines, parts, processes, and systems. Industrial engineering studies work measurement, productivity measurement, work flow analysis, job design, and labor relations. Medicines field is also concerned with OB in the sense that OB measures employees’ work stress and well-being inside and outside organizational settings and after diagnosing the causes and effects, recommendations may come to treat them with right medications.

CHALLENGES & OPPORTUNITIES IN OB
The major challenges for organizational behavior will turn as opportunities, if managed appropriately. They include the following:

1. IMPROVING QUALITY AND PRODUCTIVITY: Quality is a measure of standard of something (i.e. product, behavior, etc) and productivity is a measure of efficiency. The foremost important tools to achieve the objectives of quality and productivity are the concepts or premises of total quality management (TQM) and reengineering. TQM is a philosophy management to achieve organizational goals through customer satisfaction by continually improving all processes of the organization. Reengineering is a total overhaul or dramatic changes in the entire processes/ functions of an organization in order to attain greater productivity or profitability. The processes include systems, procedures, methods, departments, sub departments, goods, services, and so forth.

2. MANAGING WORKFORCE DIVERSITY AND GLOBALIZATION: Companies like Matsuchitta, the Japanese electronic giant and producer of National and Panasonic brands has plants in more than 150 countries with employees from 150 plus nations, with hundreds of ethnic backgrounds, races and religions. The behavior of a large and diversified workforce is unpredictable. They form many groups and alliance and respond different to various situations. Understanding the values of a diversified workforce seems challenging and the opportunity to tap is to utilize the skills and abilities of the international labor and the global managers for completion of the organizational goals.

3. EMPOWERING PEOPLE: Empowering people is to make them in charge of their work by guiding them what needs to be done, how, and in what time frame. They will work in teams to accomplish objectives and win rewards.

4. STIMULATING INNOVATION AND CHANGE: Managers encourage workers to devise new ideas to design new products and find new ways to solve problems and enhances efficiency and effectiveness. Great leaders create positive changes in corporate and organizational culture and overall functions by involving, educating, and motivating employees.

5. DECLINING EMPLOYEE LOYALTY: Management should conduct regular studies on job satisfaction and constantly observe their loyalty because well content/ satisfied employees are committed to better performance and the employee turnover and absenteeism remains low.

6. IMPROVING ETHICAL BEHAVIOR: With increasing mergers and acquisitions of corporations around the world and formation of conglomerates, the job security of employees is endangered; many inefficient plants are closed down; workers are laid off or down sized; and similar changes become threat to organizational code of conduct. Advocates of business ethics suggest acceptable behavior of bosses, no sexual harassment to female workers, workers’ safety measures, friendly ambience, minimum pay structure, and the like.

MANAGERS, MANAGEMENT & ORGANIZATIONS
Managers are individuals who get the work done from others and manage resources to achieve organizational goals. “Management is the process of planning, organizing, leading and controlling in order to achieve organizational goals most effectively and efficiently.” Planning is foreseeing the future, or defining goals, establishing strategies, and developing plans to coordinate activities. Organizing is determining what tasks are to be done, by whom, how, and with what resources. Who reports to whom? In other words, organizing is staffing, assigning jobs to people and allocating them resources to do the job. Leading includes motivating subordinates, directing them, and resolving conflicts. Controlling is monitoring activities, evaluating results by matching with plans and goals, and correcting deviations by executing changes.

MANAGEMENT ROLES
Henry Mint berg prescribed three key roles of managers including inter personal, informational, and decisional, as depicted below:

INTERPERSONAL ROLES
FIGUREHEAD: Here the manager is a symbolic head required to perform a number of routine duties of a legal or a social nature, such as taking company guests to dinners or participating in ribbon cutting ceremonies.

LEADER: A leader is responsible for the motivation and direction of subordinates.

LIAISON: Here the manager maintains a network of outside contacts that provide favors and information.

INFORMATIONAL ROLES
MONITOR: He receives wide variety of information, handles, and transmits such information to relevant sections.

DISSEMINATOR: He transmits information received from outsiders or subordinates to members of the organization.

SPOKESPERSON: He transmits information to outsiders especially media on organization’s plans, policies, actions, and results. Examples include press releases and press conferences.

DECISIONAL ROLES
ENTREPRENEUR: He searches in the environment for opportunities and initiates projects to bring about change.

DISTURBANCE HANDLER: He is responsible for corrective actions when organization faces important, unexpected disturbances.

RESOURCES ALLOCATOR: He makes or approves budget for various activities to accomplish goals.

NEGOTIATOR: He represents the organization at various settlements of deals, or disputes, or price settlements.

WHAT IS ORGANIZATIONAL BEHAVIOR?
“Organizational behavior (OB) is the study of human behavior (individuals and groups) in organizational settings with the ultimate objective of enhancing organizational effectiveness”. OB focuses on the interface between human behavior and organizations. It differs from management because it deals with only the behavioral aspect of managers and employees. OB ascertains/ investigates about the productivity of workers, relationship of rewards with performance, efficiency and effectiveness of employees while working with friendly and trust worthy bosses, absenteeism lobbying of groups, conflicts among workers and management, employees turnover, and so on. OB deals with not only profit-oriented business organizations but also with non-profit organizations like clubs, charities, associations, trusts, etc.

THE EMERGENCE OF OB
Most scholars would agree that OB emerged as a field of study in the late 1950s and early 1960s. The evolutionary period noticed simple assumptions to behavioral models, concepts, and methodologies by human relation. OB emerged as a scientific discipline as a result of Hawthorne studies and human relations movements.

THE HAWTHORNE STUDIES: The Hawthorne studies were conducted between ‘1927 to 1932’ at Western Electric’s Hawthorne Plant near Chicago. Harvard university faculty members and consultants participated in the studies. The major experiment studies the effects of different levels of lighting on productivity. The researchers manipulated one group of women workers and increased the lights of the production area, resultantly the productivity went up, when they reduced lights, there was no impact, and finally, when they made the light as dim as moonlight, productivity declined. The group’s performance was measured and compared with another group whose lighting remained unchanged.
In another major experiment, piecework incentive system was established for a nine-man group. The previous studies on management suggested that workers would individually work hard to minimize their individual income. But the experiment witnessed that people performed better in groups. Every member of the group was given an acceptable level of output as target by the team and they work harder to be accepted by the group.

HUMAN RELATIONS MOVEMENTS: Hawthorne studies led to the foundation of a new school of management thought, which was called as human relations movement. The two of the most famous human relation were Douglas McGregor and Abraham Maslow. McGregor stated that some managers believe in theory X takes a negative and pessimistic side of human nature and employee behavior. And managers that believe in theory Y takes a positive and optimistic side of human nature and employee nature.
Theory X assumptions include: 1. People do not like work and try to avoid it. 2. People don’t like work, so managers have to control, direct, coerce, and threaten employees to work for organizational goals. 3. People want to be directed and avoid responsibility.
Theory Y assumptions include: 1. People don’t dislike work; work is a natural part of their life. 2. People are internally motivated to reach objectives to which they are committed, but they want personal rewards. 3. People accept responsibility under favorable conditions. 4. People have the capacity to be innovative in solving problems. 5. People are capable but mostly, their potentials are under utilized.
Abraham Maslow’s theory assumes that motivation arises from a hierarchal series of needs. As the needs at each stage are satisfied, the individuals progresses to next higher level of needs. This topic/ theory will be discussed in detail in next chapter 4.

INTERDISCIPLINARY FOCUS OF OB
Organizational behavior takes output from various domains/ fields of study including psychology, sociology, social psychology, anthropology, political science, economics, engineering, and medicines.

PSYCHOLOGY studies behavior (actions, reactions, and changes) of humans and animals. Industrial and organizational psychologists study human behavior in the context of industries and organizations. Moreover, organizational psychologists and OB specialists study employee’s perceptions, learning, motivation, attitude, personality, decision making, job satisfaction, leadership qualities, and the like. Sociology is the study of social systems such as, a social class, a family, an occupation, a mob, or an organization. Social psychology blends the concepts of psychology and sociology; it measures the impact of societal values on our behavior. Anthropology is the scientific study of the origin, behavior, physical, social, cultural development, and religious beliefs of humans. Political science is the study of political systems such as governments i.e. their formation, laws, objectives, and governance. OB studies intra organization politics, individuals approach for power, decision making, coalition formation/ formation of groups and trade/ labor unions, conflicts with each other and management. Economics is the study of production, distribution and consumption of goods and services. Economics studies labor market dynamics, productivity, forecasting, and cost-benefit analysis. Engineering is the application of scientific and mathematical principles to the design, manufacture, and operation of efficient and economical structures, such as machines, parts, processes, and systems. Industrial engineering studies work measurement, productivity measurement, work flow analysis, job design, and labor relations. Medicines field is also concerned with OB in the sense that OB measures employees’ work stress and well-being inside and outside organizational settings and after diagnosing the causes and effects, recommendations may come to treat them with right medications.

CHALLENGES & OPPORTUNITIES IN OB
The major challenges for organizational behavior will turn as opportunities, if managed appropriately. They include the following:

1. IMPROVING QUALITY AND PRODUCTIVITY: Quality is a measure of standard of something (i.e. product, behavior, etc) and productivity is a measure of efficiency. The foremost important tools to achieve the objectives of quality and productivity are the concepts or premises of total quality management (TQM) and reengineering. TQM is a philosophy management to achieve organizational goals through customer satisfaction by continually improving all processes of the organization. Reengineering is a total overhaul or dramatic changes in the entire processes/ functions of an organization in order to attain greater productivity or profitability. The processes include systems, procedures, methods, departments, sub departments, goods, services, and so forth.

2. MANAGING WORKFORCE DIVERSITY AND GLOBALIZATION: Companies like Matsuchitta, the Japanese electronic giant and producer of National and Panasonic brands has plants in more than 150 countries with employees from 150 plus nations, with hundreds of ethnic backgrounds, races and religions. The behavior of a large and diversified workforce is unpredictable. They form many groups and alliance and respond different to various situations. Understanding the values of a diversified workforce seems challenging and the opportunity to tap is to utilize the skills and abilities of the international labor and the global managers for completion of the organizational goals.

3. EMPOWERING PEOPLE: Empowering people is to make them in charge of their work by guiding them what needs to be done, how, and in what time frame. They will work in teams to accomplish objectives and win rewards.

4. STIMULATING INNOVATION AND CHANGE: Managers encourage workers to devise new ideas to design new products and find new ways to solve problems and enhances efficiency and effectiveness. Great leaders create positive changes in corporate and organizational culture and overall functions by involving, educating, and motivating employees.

5. DECLINING EMPLOYEE LOYALTY: Management should conduct regular studies on job satisfaction and constantly observe their loyalty because well content/ satisfied employees are committed to better performance and the employee turnover and absenteeism remains low.

6. IMPROVING ETHICAL BEHAVIOR: With increasing mergers and acquisitions of corporations around the world and formation of conglomerates, the job security of employees is endangered; many inefficient plants are closed down; workers are laid off or down sized; and similar changes become threat to organizational code of conduct. Advocates of business ethics suggest acceptable behavior of bosses, no sexual harassment to female workers, workers’ safety measures, friendly ambience, minimum pay structure, and the like.

MANAGERS, MANAGEMENT & ORGANIZATIONS
Managers are individuals who get the work done from others and manage resources to achieve organizational goals. “Management is the process of planning, organizing, leading and controlling in order to achieve organizational goals most effectively and efficiently.” Planning is foreseeing the future, or defining goals, establishing strategies, and developing plans to coordinate activities. Organizing is determining what tasks are to be done, by whom, how, and with what resources. Who reports to whom? In other words, organizing is staffing, assigning jobs to people and allocating them resources to do the job. Leading includes motivating subordinates, directing them, and resolving conflicts. Controlling is monitoring activities, evaluating results by matching with plans and goals, and correcting deviations by executing changes.

MANAGEMENT ROLES
Henry Mint berg prescribed three key roles of managers including inter personal, informational, and decisional, as depicted below:

INTERPERSONAL ROLES
FIGUREHEAD: Here the manager is a symbolic head required to perform a number of routine duties of a legal or a social nature, such as taking company guests to dinners or participating in ribbon cutting ceremonies.

LEADER: A leader is responsible for the motivation and direction of subordinates.

LIAISON: Here the manager maintains a network of outside contacts that provide favors and information.

INFORMATIONAL ROLES
MONITOR: He receives wide variety of information, handles, and transmits such information to relevant sections.

DISSEMINATOR: He transmits information received from outsiders or subordinates to members of the organization.

SPOKESPERSON: He transmits information to outsiders especially media on organization’s plans, policies, actions, and results. Examples include press releases and press conferences.

DECISIONAL ROLES
ENTREPRENEUR: He searches in the environment for opportunities and initiates projects to bring about change.

DISTURBANCE HANDLER: He is responsible for corrective actions when organization faces important, unexpected disturbances.

RESOURCES ALLOCATOR: He makes or approves budget for various activities to accomplish goals.

NEGOTIATOR: He represents the organization at various settlements of deals, or disputes, or price settlements.

International marketing or import export business is ever escalating in importance. As the organizations establish and expand their businesses domestically, they start looking for profitable opportunities abroad. International marketing involves four basic steps, refer figure.

STEPS IN INTERNATIONAL MARKETING

Deciding whether to go abroad --- 2 Deciding which market to enter
Deciding mode of entry --- 4 Formulating a marketing program


DECIDING WHETHER TO GO ABROAD:

Most companies would prefer to remain in domestic business, if their domestic market were large enough. For setting up export offices abroad, managers have to learn another country’s language, culture and laws, adapt their products to strange customers needs and wants, their culture, deal with volatile currencies, face legal-political uncertainties and harassments, and so forth. Some countries impose high tariffs, quotas and other trade barriers to restrict imports from other countries. However, the benefit of going abroad is to sell the surplus and explore new profitable markets.

DECIDING WHICH MARKET TO ENTER:

A company can start exporting from few selected countries that offer high profit opportunities and fewer barriers to trade. On the other hand, companies like etc provide assistance to buy or sell goods and services internationally. In Pakistan, Trade Development Authority of Pakistan (TDAP), branches of chamber of commerce and some other organizations offer completely free technical assistance to exporters in particular and importers in general on procedures, formats, documentation, clearing and shipping matters, etc. In addition to importing or exporting goods, services are also marketed or traded internationally, such as travel and tourism services, recruiting services, consultancy services, maintenance and repair contracts, etc. The labor force that perform services abroad and send remittances to home country is engaged in services exports, which is called ‘invisible trade’, and goods trade is ‘visible trade’.

A financial analysis tends to be essential when deciding to have a direct presence abroad. This involves estimating the current market potential (it total demand), forecast of future market potential and risk, competitors’ prices and marketing-mix sales forecast, estimating costs and profits, and return on investment.

DECIDING MODE OF ENTRY:

It offers a broad list of choices each with its own list of merits and demerits.

INDIRECT EXPORT through an agent, broker, or another exporter is done at an initial stage of export.

DIRECT EXPORT can be done by opening an export department or an autonomous export division; hiring foreign-based distributors or agents; sending export sales reps abroad; and opening overseas sales branch or subsidiary company.

LICENSING OR FRANCHISING is an agreement between a manufactures or seller and buyer for the manufacturing, or manufacturing and marketing, or wholesaling, or retailing the seller’s brands against a royalty fee and any other fees. Coca-Cola carries its international marketing by licensing bottlers around the world and supply them the syrup concentrate and training to produce, distribute, and sell the product. The licensee/franchisee has the right to enjoy licensor/ franchisor’s process, trade mark, patent, trade secret, and corporate goodwill to maximize his/ her profits. The licensor/ franchisor ensures control by supplying proprietary ingredients (such as syrup of Coca-Cola) or other components needed in the product; keep launching innovated brands and advertising them at large scale; and keep monitoring the performance of the licensees/franchisees so that they remain dependant on him.

JOINT VENTURES are partnerships between foreign investors and local investors, in which they share ownership and control. Joint ventures are sometimes advantageous because the knowledge, expertise, and contacts of local partners are shared. Joint ownership has certain drawbacks, such as conflicts on the issues of decision making and policy making about investment, withdrawals of profit, marketing programs, etc. Joint venture is necessary in some countries where the governments do not permit import of certain goods nor allow direct investment but only allow joint ventures.

DIRECT INVESTMENT has its distinct advantages especially in the countries where a firm can enjoy low cost of capital or interest on loans, cheap raw materials and labor, foreign government’s investment and tax incentives, freight saving, and so on. The firm also establishes productive relation with the government, customers, suppliers, but direct investment may involve risks of legal-political uncertainty, changes in government policies, corruption, increase in cost of doing business, and so on.

FORMULATING A MARKETING PROGRAM The challenge here is whether to sell a standard size product world wide or adapt the product in compliance with local laws on product, its ingredients, features, warranty services, packaging; adapt the local price, promotion-al offers and advertising, keeping in view the regulations and competitors and distribution channels and above all, to meet the needs and wants of the customers of target countries. Many countries impose many restrictions on the product quality, warranty, maximum prices, etc. Customers’ choice of colors, designs, and packing also differ in many countries. This is why, many companies have gone Gloco local i.e. globally local, global with some modifications at local levels.

GLOBAL ORGANIZATION A multinational organization has utmost benefits of global operations. Management is recruited from many countries; components and supplies are purchased from the countries where they are the cheapest; investments are made where the anticipated returns are the greatest.

IMPORT EXPORT DOCUMENTS & SHIPPING & PAYMENT TERMS Upon inquiry, the exporter/seller mails, faxes, or emails the importer/buyer a quotation (of price) of certain products; upon acceptance, the exporter sends a sample of the product along with pictures and brochures. If the importer approves the sample, then requests the exporter to send a sample of commercial invoice (so called Performa invoice-PI) and a packing list. The payment and shipment terms, delivery schedule, and quality and packing specifications are also agreed before raising the invoice. The payment terms may be cash in advance, through telegraphic transfer (TT), wire transfer, letter of credit (LC), 50% advance, 50% LC, on account i.e. payment after sale. For more details, refer Inco Terms published by TDAP.
The most commonly used payment and shipping terms are ex factory, FOB price, CNF, CIF, and LC.

EX FACTORY PRICE The seller makes the goods available at the factory warehouse and transportation or supply of goods is the responsibility and expense of the buyer.

FREE ON BOARD (FOB) The seller makes the goods available at the board of the ship and further transportation or supply of goods is the responsibility and expense of the buyer.

COST AND FREIGHT (CNF/ CFR) The seller sends the goods to the buyer’s country up to a specified port at his expense and clearance of goods from customs authorities, payment of certain taxes, further transportation or supply of goods is the responsibility and expense of the buyer. The seller adds transportation cost in the invoice but the buyer is aware of the freight cost and saves his time in booking of goods at the vessel.

COST, FREIGHT AND INSURANCE (CIF) This is the same as CNF but the seller makes the consignment/ shipment/ container insured to protect the goods from any damages during the journey and adds the cost in the invoice.

LETTER OF CREDIT (LC) It’s an agreement between the buyer and seller involving the assurance by both parties’ banks about a confirm payment on a certain period under specific conditions. Suppose, party A gets opened LC at RBS bank in Singapore to import goods from party B in Pakistan; RBS will confirm payment on a certain period under specific conditions to party B’s bank, UBL. If the LC is Irrevocable LC at Sight, when the goods reach at Singapore’s port, upon receipt of shipping documents (invoice, packing list, shipping line/ vessel’s bill, called bill of lading, goods hygienic certificates, etc), RBS will call the party A to pay the invoice amount and party A will get the goods cleared from customs authorities upon further payment of some taxes and duties, such as advance income tax, sales tax, excise tax, port handling charges, etc. LC has many forms. The maximum terms of credit under LC are 30 to 180 days.

THE LIST OF IMPORTABLE ITEMS Not every item is importable from all countries. In Pakistan, there is a ban on import of arms and ammunition, narcotic drugs, alcoholic drugs unless prior approval of concerned government department. There is ban on importing any item from Israel due to worse diplomatic relations and there is a list of importable items from India. The importers/ exporters should check such lists before importing or exporting such things in different countries.

CONTROLLING MARKETING PROGRAMS
After implementing an entire marketing program, a company must monitor and evaluate (or control) its operations and activities, note the deviation of results and take corrective actions to meet its goals, objectives, and performance benchmarks. On annual basis, many companies perform controlling activities, also called quality audit to measure results. Companies compare the marketing objectives with actual results, for example, number of new products launched in a year should be 10, making at least 5 products the hit products, annually 15% sales growth, attaining 40% market share, reaching annual sales target of Rs100 million, equipping marketing team and sales reps with latest training tools, and so on. Finally, the managers can measure the difference between the actual versus planned results and trace out the causes for deviation and solutions for the future planning.

MANAGING BRANDS
Managing brands successfully, extending product lines and service businesses is the essence of marketing. In many organizations, brand managers manage the individual brands and the product managers manage individual product line. Product and brand managers are responsible for the product innovation, development, packaging, pricing, promotion, distribution, and sales of an entire product line.

“A brand is a name of an individual product that may include a design or symbol intended to identify and differentiate the product of a seller from its competitors’ products.” A brand might include a trade mark (TM), which includes a unique name and/ or design and symbol of a product that protects the brand from exact copying under the trade mark law. A company might acquire famous foreign brands through licensing or franchising agreement. Many companies also produce private brands for their big customers. Many companies sell unbranded products without a particular name (such as rice, wheat, sugar, cotton, etc).

The benefits of branding include building brand equity or worth, corporate image and goodwill, ease in launching additional hit products under the same brand name, which is called a brand family, such as Pepsi, Diet Pepsi, Pepsi Max, etc. The other benefits include chances of higher sales growth, greater profits (due to charging a premium price), product’s enhanced age, etc. But brand management needs continuous promotions, especially advertising, and allied marketing techniques. An un-branding or selling unbranded product is simply trading, which also offer substantial returns but comparatively, branding has proved much more profitable in the long-run.

The world’s top ten superpower brands, according to Interbrand, are (in rank order): Coca-Cola, Kellogg’s, McDonald’s, Kodak, Marlboro, IBM, American Express, Sony, Mercedes Benz, and Nescafe. According to one estimate, the brand equity of Marlboro is $31 billion and Caca-Cola$24 billion, which may be much higher than their annual sales. Many brand leaders of 70 years ago are still brand leaders today, including Coca-Cola, Gillette, Kodak, Del Monte, and Campbell’s.

BRAND-NAME DECISIONS

Manufacturers use four key strategies in selecting brand names.

1. Individual brand names of products, such as parker pens, Dollar ink, etc.
2. A family name for a product line (group), such as Clean hand wash, Clean perfumed hand wash, and Clean soup.
3. Separate family name for all product lines, such as Lux almond oil soap, Lux honey soap, Lux Alloe Vera soap, etc, and Dalda ghee, Dalda vanas pati, etc.
4. Company trade name combined with individual product name, such as National spices, National pickles (achar), National gem, National jelly, etc.

PRODUCT-LINE AND PRODUCT-MIX DECISIONS
“A product-line is a group of products that are closely related because they perform similar functions, are sold to the same customer groups, are marketed through the same channels, but may or may not fall a particular price range.” “A product mix is the combination of all product-lines of a company.” See examples of Lux and Dalda above.

PRODUCT LINE STRETCHING OR EXTENSION
After noticing the sales and profits growth of a product, a company can easily add new products in the line, which have sheer chances of success in the marketplace, the typical example includes Head and Shoulders and Pentene shampoos lines. After the success of Lux soap, if the company launches low-priced Lux soaps, it’s called downward stretching (of price) and conversely is upward stretching.

PACKAGING AND LABELING
Packaging includes activities of designing and producing the container or wrapper pf a product. Label includes the name of the product and the written words on the wrapper, such as ingredients, price, batch number, expiry date, manufacturer’s name, etc. A sticker pasted on the wrapper is also a Label. Packaging is called the 5th P of marketing mix because it plays a vital role in selling. Packaging and labeling should be appealing, colorful, when possible, and convenient in carrying

MANAGING SERVICE BUSINESSES
“A service is a performance of certain actions to satisfy a need, such as healthcare services, cleaning service, legal services, banking services, etc.” A service is intangible because unlike physical goods, it can not be seen, tasted, felt, heard, or smelled. A service is inseparable because it can’t be separated. A service is imperishable because they are not perished like other perishable commodities and items like food and beverages.

Managing services require three careful tasks: 1. Increasing their competitive differentiation (such as repair, warranty, customer training, free delivery, installation, etc). 2. Service quality (that refers to the degree of customer satisfaction). 3. Productivity (through skillful work, addition of standardized equipments and procedures, and customer involvement). A typical instance of customer involvement is the trends in fast food restaurants, whose self-service system is replacing watering work with customer’s work. Another area of service business is customized services (and goods), made on the specifications of buyers, such as custom or tailor made or make-to-order dresses, jeans, shoes, ice creams, jewelry, health or accidents insurance, etc. Another area is customized mass production; some examples include restaurants and catering service businesses, and garment factories that produce bulk stock to fulfill a specific order.

POST SALE/AFTER SALE SERVICE STRATEGY
A manufacture can cater to post sale services, especially which require technical expertise in one of four ways: 1, through its own customer service department; 2, by hiring a service- specialist firm; 3, by making such arrangement with distributors and dealers; and 4, by leaving it to customers to find service specialists.

MANAGING PRODUCT LIFE CYCLE (PLC)
Normally, every product has a life cycle, from start to finish. As a product is introduced in the market, with promotional efforts, it sales grow, reaches to a peak or stability level, and eventually decline. Refer the figure 15.1.

The reasons for decline in sales, demand and profit include changes in technology, fashion and customer preferences, arrival of substitute products (as coffee against tea or brown sugar against white sugar), intensive competition, economic recession, slowing population growth and government policies (as ban on cigarettes).

STRATEGIES FOR PRODUCT LIFE CYCLE STAGES: A product can be a hit product, if it follows a pattern: at the introduction stage, launch product with high quality and innovated features (but this is not always necessary because even low quality products get good market share), competitively price the product, do heavy advertising and promotions, ensure wide distribution, and customer service. At the growth stage, improve quality, add new features and new models, cut prices of old models for lower segment of customers, increase advertising and promotions, enter new market segments and niches, and enhance distribution coverage. At the maturity stage, a firm should apply the same strategies to restore growth or enhance maturity period. At the decline stage, a firm should adopt many strategies to revive or rejuvenate its products, such as increasing its investment to strengthen its position, decreasing its investment in unprofitable customer groups and markets, needs major product improvements, build repositioning strategies, introduces new uses, and find new distribution out lets. The ultimate option in case of no improvement is to divest the product or sell it out with brand equity and invest in new products.