Post on 04-Apr-2018
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ASSIGNMENT-01/02
Name : AFTAB.E.ALAM
Registration No. : 541110012
Learning Center : Kuwait
Learning Center Code : 2527
Course : MBA
Subject :
Semester : First
Module No. :
Date of Submission :
Marks awarded :
Directorate of Distance Education
Sikkim Manipal University
II Floor, Syndicate House
Manipal- 576 104
_______________________ ___________________________ ___________________________
Signature of Coordinator Signature of Center Signature of Evaluator
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Q.1 Write a note on the functions of management. [10]
Follet (1933) defined management as the art of getting things done through people.
One can also think of management functionally, as the action of measuring a quantity on a
regular basis and of adjusting some initial plan.
Management functions are as follows (Fayol, 1949):
1. Planning:
2. Organizing:
3. Commanding
4. Coordinating
5. Controlling
However, in recent time, management functions have been regrouped into four categories,
since the managerial tasks have become highly challenging a fluid in nature making distinctions
redundant to a certain extends. The four functions are as follows:
1. Planning
2. Organizing
3. Leading
4. Controlling
1. Planning: it involves the process of defining goals, establishing strategies for achieving these
goals, and developing plans to integrate and coordinate activities. Every organization needs to
plan for change in order to reach its set goal. Effective Planning enables an organization adapt
to change by identifying opportunities and avoiding problems.it provides the direction for the
other functions of management and for effective teamwork. Planning also enhances the
decision making process. All Levels of management engage in planning in their own way for
achieving their preset goals.
Planning in order to be useful must be linked to the strategic intent of an organization. Therefore,
Planning is often referred to as strategic in nature and also termed as strategic planning.
Strategic Planning: Top level managers engage chiefly in strategic planning or long range
planning, strategic planning is the process of developing and analyzing the organizations
mission, overall goals, generally strategies, and allocating resources.
The tasks of the strategic planning process include the following steps:
1. Define the Mission
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2. Conduct a situational or SWOT Analysis
3. Set Goals and Objectives
2. Organizing:
It involves designing, structuring, and coordinating the work components to achieve
organizational goal. It is the process of determining what tasks are to be done, who is to do, how
the tasks are to be grouped, who reports to whom, and where decisions are to be made. A Key
issue in accomplishing the goals identified in the planning process is structuring the work of the
organization. Organizations are groups of people, with ideas and resources, working toward
common goals. The Purpose of the organizing function is to make the best use of the
organization resources to achieve organizational goals. Organizational structure is the formal
decision-making framework by which job tasks are divided, grouped and coordinated.
Formalization is an important aspect of structure. It is the extent to which the units of the
organizations are explicitly defined and its policies, procedures, and goals are clearly stated.it is
the official organizational structure conceived and built by top management. The formal
organization can be seen and represented in chart form. An Organization chart display the
organizational structure and shows job titles, line of authority, and relationships between
departments.
The steps in the organizing process include:
1. Review plans
2. List all tasks to be accomplished
3. Divide tasks into groups one person can accomplish-a job
4. Group related jobs together in a logical and efficient manner
5. Assign work to individuals
6. Delegate authority to establish relationships between jobs and groups of jobs.
3. Leading:
An Organization has the greatest chance of being successful when all of the employees worktoward achieving its goals. Since leadership involves the exercise of influence by one person
over others, the quality of leadership exhibited by supervisors is a critical determinant of
organizational l success.
Supervisors can learn about leadership through research. Leadership studies can be classified as
trait, behavioral, contingency, and transformational. Earliest theories assumed that the primary
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source of leadership effectiveness lay in the personal traits of the leaders themselves. Yet, traits
alone cannot explain leadership effectiveness. Thus, later research focused on what the leader
actually did when dealing with employees. These behavioral theories of leadership sought to
explain the relationship between what the leaders did and how the employees reacted, both
emotionally and behaviorally. Yet, behavior cant always account for leadership in different
situations. Thus, Contingency theories of leadership studied leadership style in different
environments. Transactional leaders, such as those identified in contingency theories, clarify role
and task requirements for employees. Yet, Contingency cant account for the inspiration and
innovation that leaders need to compete in todays global market place. Newer
transformational leadership studies have shown that leaders, who are charismatic and visionary,
can inspire followers to transcend their own self-interest for the good of the organization.
Leading Involves the following functions:
1. Team Building
2. Consensus Building
3. Selecting
4. Training
4. Controlling:
It involves monitoring employees behavior and organizational process and takes necessary
actions to improve them, if needed. Control is the process through which standards for
performance of people and processes are set, communicated, and applied. Effective control
systems use mechanisms to monitor activities and take corrective action, if necessary.
There are four steps in the control process. They are as follows:
Step1. Establish Performance standards.
Step2. Measures Actual Performance
Step3. Compare measured performance against established standards.
Step4. Take Corrective Action
Types of Control
Controls are most effective when they are applied at key places. Supervisors can implement
controls before the process begins (feed forward), during the process (Concurrent), or after it
ceases (Feedback).
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Feed forward Controls focus on operations before they begin. Their goal is to prevent
anticipated problems. An Example of feed forward control is scheduled maintenance on
automobiles and machinery.
Concurrent controls apply to processes as they are happening. Concurrent controls enacted
while work is being performed include any type of steering or guiding mechanism such as direct
supervision, automated systems (such as computers programmed to inform the user when they
have issued the wrong command), and organizational quality programs.
Feedback controls Focus on the result of operations. They guide future planning, inputs, and
process designs. Examples of feedback controls include timely (weekly, monthly, quarterly, and
annually) reports so that almost instantaneous adjustments can be made.
Q.2 Discuss any two learning theories in detail [10]
Theories of learning
1. Classical conditioningClassical conditioning is a form of associative learning process proposed by Pavlov
(1927).This process involves presentations of a neutral stimulus along with a stimulus of some
significance. The neutral stimulus doesnt lead to an overt behavioral response from the
organism. This is called as Conditioned Stimulus (CS).Significant stimulus evokes an innate,
often reflexive, response. This is called Unconditioned Stimulus (US) and UN conditioned
Response (UR), respectively. If the CS and the US are repeatedly paired, eventually the two
stimuli become associated and the organism begins to produce a behavioral response to it.
It is the Conditioned Response (CR).
Classical conditioning was first experimented by Russian Physiologist, Ivan Pavlov, to teach
dogs to salivate in response to the ringing of a bell. During his research on the physiology of
digestion in dogs, Pavlov used a bell before giving food to his dog. Rather than simply
salivating in the presence of meat (a response to food-unconditioned response), after a few
repetitions, the dog started to salivate in response to the bell. Thus, a consistent pairing with
the unconditioned stimulus (US-meat).Pavlov referred to this learned relationship as a
Conditioned Response.
2. Social learningThe social learning theory was proposed by Bandura. It recognizes the importance of
observing and modeling the behaviors, attitudes, and emotional reactions of others.
According to Bandura (1977), most human behavior is learned observationally through
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modeling: from observing others one forms an idea of how new behaviors are performed,
and on later occasions this coded information serves as a guide for action. Social learning
theory explains human behavior in terms of continuous reciprocal interaction between
cognitive, behavioral, and environmental influences.
Learning would be exceedingly laborious, not to mention hazardous, if people had to rely
solely on the effects of their own actions to inform them what to do. Fortunately, most
human behavior is learned observationally through modeling: from observing others one
forms an idea of how new behaviors are performed, and on later occasions this coded
information serves as a guide for action. - Albert Bandura, social learning Theory, 1977
Social learning has four processes:
1. Attention process- People learn from a model only when they recognize and payattention to its critical features. In order to learn, it is required to pay attention. Anything
that detracts the attention is going to have a negative effect on observational learning.
If the is model interesting or there is a novel aspect to the situation, it is more likely to
dedicate the full attention to learning.
2. Retention process- A Models influence will depend on how well the individualremembers the models action after the it is no longer readily available. The ability to
store information is also an important part of the learning process. Retention can be
affected by a number of factors, but the ability to pull up information later ad act on it is
vital to observational learning.3. Motor reproduction process- After a person has seen a new behavior by observing the
model, the watching must be converted to doing. The ability to store information is also
an important part of the learning process. Retention can be affected by a number of
factors, but the ability to pull up information later and action it is vital to observational
learning.
4. Reinforcement process- Individuals will be motivated to exhibit the modeled behavior ifpositive incentives or rewards are provided. Finally, in order for observational learning to
be successful, you have to be motivated to imitate the behavior that has been
modeled. Reinforcement and punishment play an important role in motivation. While
experiencing these motivators can be highly effective, so can observing other
experience some type of reinforcement or punishment? For example, if you see another
student rewarded with extra credit for being to class on time, you might start to show up
a few minutes early each day.
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Principles of social learning are as follows:
1. The highest level of observational learning is achieved by first organizing andrehearsing the modeled behavior symbolically and then enacting it overtly. Coding
modeled behavior into word, labels or images results in better retention than simply
observing.
2. Individuals are more likely to adopt a modeled behavior, if it results in outcomes theyvalue.
3. Individuals are more likely to adopt a modeled behavior, if the model is similar to theobserver and has admired status and the behavior has functional value.
Q.3 Explain the classification of personality types given by Sheldon. [10]
William Sheldon (1940, 1942, cited in Phares, 1991) classified personality according
to body type. He called this a persons somatotype.
Sheldons identified three main somatotypes:
Sheldons classification of personality types.
Somatotypes
In the 1940s, Sheldon proposed a theory about how there are certain body types
(somatotypes) that are associated with certain personality characteristics. William Sheldon
(1898-1977) was an American psychologist who devoted his life to observing the variety of
human bodies and temperaments. He taught and did research at a number of U.S. Universities
and is best known for his series of books on the human constitution. He was a keen observer of
animals and birds as a child, and he turned this talent to good effect by becoming an avid
people-watcher, and out of his observations he gradually elaborated his typology. He claimed
Sheldons
Somatotype
Character Shape
Endomorph
(viscerotonic)
Relaxed,sociable,tolerant,comfort-
loving,peaceful
Plumb,buxom,developed
visceral structure
Mesomorph(somatotonic)
Active,assertive,vigorous,combative Muscular
Ectomorph
(cerebrotonic)
Quiet,fragile,restrained,non-
assertive,sensitive
Lean,delicate,poor
muscles
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that there are three such somatotypes: endomorphy, mesomorphy, and ectomorphy.
Endomorphy- Focused on the digestive system particularly the stomach (endoderm): has the
tendency toward plumpness, corresponds to Viscerotonia temperament tolerant, love of
comfort and luxury, extravert.
Mesophorphy- Focused on musculature and the circulatory system (mesoderm), has the
tendency towards muscularity, corresponds to the Somatotonia temperament courageous,
energetic, active, dynamic, assertive, aggressive, risk taker.
Ectomorphy focused on the nervous system and the brain (ectoderm)-the tendency towards
slightness, corresponds to Cerebrotonia temperament artistic, sensitive, apprehensive, introvert.
On this basis, Sheldon created his very interesting Atlas of Men (Macmillan Pub Co.1970) in which
all possible body types are graded in a scale from 1(low) to 7(high),based on the degree to
which they matched these types ;with 4 as average).Each Type is represented by a series of
photos, and is given a comical or descriptive name, like saber tooth tiger for extreme
mesomorph,Baluchitherium (the largest prehistoric land mammal) for mesomorph and
endomorph. Male Mosquito for the extreme ectomorph, and so on. On this scale, the
extreme or pure mesomorph has a score of 1-7-1, the pure endomorph 7-1-1 and the pure
ectomorph 1-1-7. Most of people of course are a combination of types.
a. Endomorphic Body Type: Soft body Underdeveloped muscles Round shaped Over-developed digestive system
Associated personality traits
Love of food Tolerant Evenness of emotions Love of comfort Sociable Good humored Relaxed Need for affection
b. Mesomorphic Body type Hard, muscular body Overly mature appearance Rectangular shaped Thick skin Upright posture
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Associated personality traits
Adventurous Desire for power and dominance Courageous Indifference to what others think or want Assertive, bold Zest for physical activity Competitive Love of risk and chance
c. Ectomorphic Body type: Thin Flat chest Delicate build Young appearance Tall Lightly muscled Stoop-shouldered Large brain
Associated Personality traits:
Self- conscious Preference for privacy Introverted Socially anxious Artistic Mentally intense Emotionally restrained
Sheldon measured the proportions of hundreds of juvenile delinquent boys and concluded that
they were generally mesomorphs (Ornstein, 1993).
Body types have been criticized for very weak empirical methodology and are not generally
used in psychology. The use of somatotyping (using different taxonomies) is used more often n
alternative therapies and Easter psychology and spirituality.
Traits are underlying tendencies to behave in a consistent and distinctive style and they describe
the frequency or intensity of a persons feelings, thoughts, or behaviors. Profession of a trait is,
therefore, a matter of degree.
Q.4 What are the factors influencing perception? [10
Perception is our sensory experience of the world around us and involves both the recognition of
environmental stimuli and actions in response to these stimuli. Through the perceptual process,
we gain information about properties and elements of the environments that are critical to our
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survival. Perception not only creates our experience of the world around us; it allows us to act
with in our environment.
A number of factors operate to shape and sometimes distort perception. These factors can
reside:
i) In the perceiverii) In the object or target being perceived oriii) In the context of the situation in which the perception is made.1. Characteristics of the perceiver: Several characteristics of the perceiver can affect
perception. When an individual looks at a target and attempts to interpret what he or
she stands for, that interpretation is heavily influenced by personal characteristics of the
individual perceiver. The Major characteristics of the perceiver influencing perception
are:
a) Attitudes: The perceivers attitudes affect perception. For example, suppose Mr. X isinterviewing candidates for a very important position in his organization-a position that
requires negotiating contracts with suppliers, most of whom are male. Mr. X may feel that
women are not capable of holding their own in tough negotiations. This attitude will
doubtless affect his perceptions of the female candidates he interviews.
b) Moods: Moods can have a strong influence on the way we perceive someone. We thinkdifferently when we are happy than we do when we are depressed. In addition, we
remember information that is consistent with our mood state better than information that
is inconsistent with our mood state. When n a positive mood, we form more positive
impressions of others. When in a negative mood, we tend to evaluate others
unfavorably.
c) Motives: unsatisfied needs or motives stimulate individuals and may exert a stronginfluence on their perceptions. For example, in an organizational context, a boss who is
insecure perceives a subordinates effort to do an outstanding job as a threat to his or
her own position. Personal insecurity can be translated into the perception that others
are out to getmy job, regardless of the intention of the subordinates.
d) Self-Concept: Another factor that can affect social perception is the perceivers self-concept. An individual with a positive self-concept tends to notice positive attributes in
another person. In contrast, a negative self-concept can lead a perceiver to pick out
negative traits in another person. Greater understanding of self allows us to have more
accurate perceptions of others.
e) Interest: The focus of our attention appears to be influenced by our interests. Because our
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individual interests differ considerably, what one person notices in a situation can differ
from what others perceive. For example, the supervisor who has just been reprimanded
by his boss for coming late is more likely to notice his colleagues coming late tomorrow
than he did last week. If you are preoccupied with a personal problem, you may find it
hard to be attentive in class.
f) Cognitive structure: Cognitive structure, an individuals pattern of thinking, also effectsperception. Some people have a tendency to perceive physical traits, such as height,
weight, and appearance, more readily. Others tend to focus more on central traits, or
personality dispositions. Cognitive complexity allows a person to perceive multiple
characteristics of another person rather than attending to just a few traits.
g) Expectations: Finally, expectations can distort your perceptions in that you will see whatyou expect to see. The research findings of the study conducted by Sheldon S Zalkind
and Timothy W Costello on some specific characteristics of the perceiver reveal.
Knowing oneself makes it easier to see others accurately Ones own characteristics affect the characteristics one is likely to see in others. People who accept themselves are more likely to be able to see favorable
aspects of other people.
Accuracy in perceiving others is not a single skill.These four characteristics generally influence how a person perceives others in the
environmental situation.
Characteristics of the Target
Characteristics in the target that is being observed can affect what is perceived. Physical
appearance plays a big role in our perception of others. Extremely attractive or unattractive
individuals are more likely to be noticed in a group than ordinary looking individuals. Motion,
sound, size and other attributes of a target shape the way we see it. The Perceiver will notice the
targets physical features like height, weight, estimated age, race, and gender. Perceivers tend
to notice physical appearance characteristics that contrast with the norm, that are intense, or
that are new or unusual. Physical attractiveness often colors our entire impression of another
person. Interviewers rate attractive candidates more favorably and attractive candidates are
awarded higher starting salaries.
Verbal communication from target also affects our perception of them. We listen to the topics
they speak about, their voice tone, ad their accent and make judgments based on this input.
Non-verbal communication conveys a great deal of information about the target. The
perceiver deciphers eye contact, facial expressions, body movements, and posture all in an
attempt to form an impression of the target. As a result of physical or time proximity, we often
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put together objects or events that are unrelated.
For example, employees in a particular department are seen as a group. If two employees of a
department suddenly resign, we tend to assume their departures were related when in fact,
they might be totally unrelated, people, objects or events that are similar to each other also
tend to be grouped together. The greater the similarity, the greater the probability we will tend
to perceive them as a group.
Characteristics of the situation
The situation, in which the interaction between the perceiver and the target takes place, has
an influence on the perceivers impression of the target. E.g. meeting a manager in his or her
office affects your impression you would have formed, had you met the manager in a
restaurant. The strength of the situational had you met the manager in a restaurant. The strength
of the situational cues also affects social perception. Some situations provide strong cues as to
appropriate behavior. In these situations, we assume that individuals behavior can be
accounted for by the situation, and that it may not reflect the individuals disposition. This is the
discounting principle in social perception. For example, you may encounter an automobile
salesperson that has a warm and personable manner, asks you about your work and hobbies,
and seems genuinely interested in your taste in cars. Can you assume that this behavior reflects
the salespersons personality? You probably cannot, because of the influence of the situation.
This person is trying to sell you a car, and in this particular situation, he probably treats all
customers in this manner.
Factors in the perceiver Attitudes Motives Interests Experience Expectation
Factors in the situation
Time Work Setting Social Setting
PERCEPTION
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Factors in the target
Novelty Motion Sound Size Background Proximity
Q.5 Mr. Solanki is the VP- HR of a leading financial services company. He is having a meeting
with Ms. Ramani leading HR consultant. Mr. Solanki is concerned about creating an environment
that helps in increasing the job satisfaction amongst employees. Assume that you are Ms.
Ramani, the HR consultant. What suggestions you will give to Mr. Solanki, for creating an
environment that increases job satisfaction [10]
Job Satisfaction:
Job satisfaction is the sense of fulfillment and pride felt by people who enjoy their work and do it
well. For an organization, satisfied work force ensures commitment to high quality performance
and increased productivity job satisfaction helps organizations to reduce complaints and
grievances, absenteeism, turnover, and termination. Job satisfaction is also linked to a healthier
work force and has been found to be a good indicator of longevity. And although only little
correlation has been found between job satisfaction and productivity, it has also been found
that satisfying or delighting employees is a prerequisite to satisfying or delighting customers, thus
protecting the bottom line (Brown, 1996)
The most important factors conductive to job satisfaction are :
I) Mentally challenging work: employees tend to prefer jobs that give themopportunities to user their skills and abilities and offer a variety of tasks, freedom, and
feedback on how well they are doing. Under conditions of moderate challenge,
most employees will experience pleasure and satisfaction.
II) Personally-job fit: People with personality types congruent with their chosenvocations should find they have the right talents and abilities to meet the demand of
their jobs; and because of this success, they have a greater probability of achieving
high satisfaction from their work. It is important, therefore to fit personality factors with
job profiles.
III) Equitable Rewards: Employees want pay systems and promotion policies that theyperceive as being just, unambiguous, and in line with their expectations. When pay is
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seen as fair based on job demands, individuals skill level, and industry pay standards,
satisfaction is likely to result. Similarly, employees seek fair promotion policies and
practices. Promotions provide opportunities for personal growth, more responsibilities
and increased social status. Individuals who perceive that promotion decisions are
made in a fair and just manner are likely to experience job satisfaction.
IV) Supportive working Conditions: Employees prefer physical conditions that arecomfortable and facilitate doing a good job. Temperature, light, noise and other
environmental factors should not be extreme and provide personal comfort. Further,
employees prefer working relatively close to home, in clean and relatively modern
facilities and with adequate tools and equipment.
V) Supportive Colleagues: Employees have need for social interaction. Therefore,having friendly and supportive co-workers ad understanding supervisors leads to
increased job satisfaction. Most employees want their immediate supervisor to be
understanding and friendly, who offer praise for good performance, listen to
employees opinions and show a personal interest in them.
VI) Whistle Blowing: Whistle-blowers are employees who inform authorizes of wrongdoings of their companies or co-workers. Whistle blowing is important because committed
organizational members sometimes engage in unethical behavior in an intense
desire to succeed. Organizations can manage whistle blowing by communicating
the conditions that are appropriate for the disclosure of wrongdoing. Clearly
delineating wrongful behavior and the appropriate ways to respond are important
organizational actions.
VII) Social Responsibility: A corporate social responsibility is the obligation of anorganization to behave in ethical ways in the social environment in which it operates.
Socially responsible actions are expected of organizations. Current concerns include
protecting the environment, promoting worker safety, supporting social issues,
investing in the community, etc. Managers must encourage both individual ethical
behavior and organizational social responsibility.
Job Enrichment
It is a deliberate upgrading of responsibility, scope and challenge in the work itself. Job
enrichment usually includes increased responsibility, recognition, and opportunities for
growth, learning and achievement. Large companies that have used job-enrichment
programs to increase employees motivation and job satisfaction include AT & T, IBM, and
General Motors (Daft, 1997).
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Workers Role in Job Satisfaction
Workers should also take some responsibility for his or her job satisfactory. Everett (1995)
proposed the following questions which employees ask them in regard to job satisfaction at
the job place:
1. When have I come closest to expressing my full potential in a work situation?2. What did it look like?3. What aspects of the work place where most supportive?4. What did I learn from that experience that could be applied to the presence
situation?
The Following suggestions can help a worker find personal job satisfaction:
1. Seek opportunities to demonstrate skills and talents2. Develop Communication Skills3. Acquire job related skill and try to implement them.4. Demonstrate creativity and initiative5. Improve team building and leadership skill6. Learn to de-stress.
Q.6 Given below is the HR policy glimpse of the VARK-LEARNING learning and training
solutions company
1. It offers cash rewards for staff members
2. It promotes the culture of employee referral and encourages people to refer people they
know may be their friends, ex. Colleagues batch mates, relatives.
3. What all needs do it takes care off according to Maslows need hierarchy
4. It recognizes good performances and gives fancy titles and jackets to the people who
perform well and also felicitates them in the Annual Day of the company.
What all aspects does it takes care of according to the Maslows Need Hierarchy? [10]
Maslows Hierarchy of Needs Theory
According to this theory, proposed by Maslow (1943), human beings have wants and desires
which influence their behavior; only unsatisfied needs can influence behavior, satisfied needs
cannot. The needs are arranged in order of importance, from the basic to the complex. The
person advances to the next level of needs only after the lower level need is at least minimally
satisfied. The further they progress up the hierarchy, the more individuality, humanness and
psychological health a person will show.
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Maslows Need Hierarchy Pyramid
The five needs are:
1. Physiological: Includes hunger, thirst, shelter, sex, and other bodily needs2. Safety: Includes security and protection from physical and emotional harm3. Social:Includes affection, belongingness, acceptance, and friendship4. Esteem:Includes internal esteem factors, such as, self-respect, autonomy, and achievement;
and external esteem factors, such as, status, recognition, and attention
5. Self-actualization:The drive to become what one is capable of becoming; includes growth,achieving ones potential, and self-fulfillment
6. Maslow separated the five needs into higher and lower orders. Physiological and safetyneeds are described as lower-order. Social, esteem, and
self-actualization are classified as higher-order needs. Higher-order needs are satisfiedinternally, whereas, Lower-order needs are predominantly satisfied, externally.
Theory X and Theory Y
Douglas McGregor argued that a managers view of the nature of human beings is
based on a certain grouping of assumptions and he or she tends to mould his or her behavior
toward employees according to these assumptions.
Theory X
In this theory management assumes employees are inherently lazy and will avoid work, if
they can. Workers need to be closely supervised and a comprehensive system of controls and a
hierarchical structure is needed to supervise the workers closely. It is also assumed that workers
generally place security above all other factors and will display little ambition.
Theory Y
In this theory management assumes employees may be ambitious, self-motivated, and
anxious to accept greater responsibility, and exercise self-control, self-direction, autonomy and
empowerment. It is believed that employees enjoy their mental and physical work duties. It is
also believed that, if given the chance employees have the desire to be creative and forward
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thinking in the workplace. There is a chance for greater productivity by giving employees the
freedom to perform to the best of their abilities without being bogged down by rules.
From the above, it is clear that Theory X assumes that lower-order needs dominate
individuals. Theory Y assumes that higher-order needs dominate individuals.
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Q.1 Write a note on classical era for evolution of Organization behavior. [10]
The Classical Era
We see this trend to continue in what is called as the classical era which covers the period
between 1900 to mid 1930s.the first general theories of management began to evolve and the
main contributors during this era were Frederic Taylor, Henri fayol, Max Weber, Mary Parker Follet
and Chester Barnard.
Frederick Taylors main emphasis was on finding one best way of doing each job. He stressed on
selecting the right people for the job. Train them to do it precisely in one best way. He favored
wage plans to motivate the workers. His scientific principles of management stressed the
following principles.
1. Shift all responsibility for the organization of work from the worker to the manager,managers should do all the thinking relating to the planning and design of work, leaving
the workers with the task of implementation.
2. Use Scientific methods to determine the most efficient way of doing work; assign theworkers task accordingly, specifying the precise way in which the work is to be done.
3. Select the best person to perform the job thus designed.4. Train the worker to do the work efficiently5. Monitor worker performances to ensure that appropriate work procedures are followed
and that appropriate results are achieved.
Taylor was one of the first to attempt to systematically analyze human behavior at work. He
insisted the use of time-and-motion study as a means of standardizing work activities. His
scientific approach called for detailed observation and measurement of even the most routine
work, to find the optimum mode of performance.
The Results were dramatic, with productivity increasing significantly. With passing time, new
organizational functions like personnel and quality control were created. Of course, in breaking
down each task to its smallest unit to find what Taylor called the one best way to do each, the
effect was to remove human variability. Hence he laid the ground for the mass production
techniques that dominated management thinking in the first half of the twentieth century.
Henri Fayol, a mining engineer and manager by profession, defined the nature and working
patterns of the twentieth-century organization in his book, General and industrial management,
published in 1916. In it, he laid down what he called 14 principles of management. This theory is
also called the Administrative Theory. The Principles of the theory are:
1. Division of work: tasks should be divided up with employees specializing in a limited set oftasks so that expertise is developed and productivity increased.
2. Authority and responsibility; authority is the right to give orders and entails enforcing themwith rewards and penalties; authority should be matched with corresponding
responsibility.
3. Discipline: this is essential for the smooth running of business and is dependent on goodleadership, clear and fair arguments, and the judicious application of penalties.
4. Unity of command: for any action whatsoever, an employee should receive orders fromone superior only: otherwise authority, discipline, order, and stability are threatened.
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5. Unity of direction: a group of activities concerned with a single objective should be co-ordinated by a single plan under one head.
6. Sub ordination of individual interest to general interest; individual or group goals must notbe allowed to override those of the business.
7. Remuneration of personnel: this may be achieved by various methods but it should befair, encourage effort, and not lead to overpayment.
8. Centralization: the extent to which orders should be issued only from the top of theorganization is a problem which should take into account its characteristics, such as size
and the capabilities of the personnel.
9. Scalar chain (line of authority): communications should normally flow up and down theline of authority running from the top to the bottom of the organization, but sideways
communication between those of equivalent rank in different departments can be
desirable so long as superiors are kept informed.
10. Order: both materials and personnel must always be in their proper place; people mustbe suited to their posts so there must be careful organization of work and selection of
personnel.
11. Equity: personnel must be treated with kindness and justice.12. Stability of tenure of personnel: rapid turnover of personnel should be avoided because
of the time required for the development of expertise.
13. Initiative; all employees should be encouraged to exercise initiative within limits imposedby the requirements of authority and discipline.
14. Espirit de corps: efforts must be made to promote harmony within the organization andprevent dissension and divisiveness.
The management functions, that fayol stated, consisted of planning, organizing, commanding,
coordinating and controlling. Many practicing managers, even today, list these functions as the
core of their activities. Fayol was also one of the first people to characterize a commercial
organizations activities into its basic components. He suggested that organizations could besub-divided into six main areas of activity;
1. Technical2. Commercial3. Financial4. Security5. Accounting6. Management
In defining the core principles governing how organizations worked and the contribution of
management to that process, fayol laid down a blue print that has shaped organization thinking
for almost a century.
Max Weber developed a theory based on authority relations and was the pioneer in looking at
management and OB from a structural view point. His theory is also known as bureaucratic
theory in management. He described ideal types of organization and called it a bureaucracy.
This was a system marked by division of labor, a clearly defined hierarchy, detailed rules and
regulations and impersonal relationships. He wanted this ideal types construct to be taken as a
basis for creating organizations in real world. The detailed features of Webers ideal
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bureaucratic structure are a follows;
1. Jurisdictional areas are clearly specified, activities are distributed as official duties (UN liketraditional form where duties delegated by leader and changed at any time.
2. Organization follows hierarchical principle- subordinates follow orders or superiors, buthave right of appeal ( in contract to more diffuse structure in traditional authority)
3. Intention, abstract rules govern decisions and actions. Rules are stable, exhaustive, andcan be learned. Decisions are recorded in permanent files (in traditional forms few
explicitly rules or written records).
4. Means of production or administration belong to office. Personal property separatedfrom office property.
5. Officials are selected on basis of technical qualifications, appointed not elected, andcompensated by salary.
6. Employment by the organization is a career. The official is a full time employee and looksforward to a lifelong career. After a trial period they get tenure of position and are
protected from arbitrary dismissal.
Q.2. Write a note on different types of groups. Explain. [10]
Groups can be of two types:
Formal Informal
Groups can be either formal or informal
1. Formal groups: A designated work group defined by the organizations structure. Aformal group is set by the organization to carry out work in support of the organizations
goals. In formal groups, the behaviors that one should engage in are stipulated by and
directed toward-organizational goals. Examples include a book keeping department an
executive committee, and a product development team. Formal groups may becommand groups or task groups.
i) Command Group: A command group consists of a manager and the employeeswho report to him or her. Thus, it is defined in terms of the organizations hierarchy.
Membership in the group arises from each employees on the organizational chart.
ii) Task Group: A task group is made up of employees who work together to complete aparticular task or project. A task groups boundaries are not limited to its immediate
hierarchical superior. It can cross command relationships. An employees
membership in the group arises from the responsibilities delegated to the employee
that is the employees responsibility to carry out particular activities. Task group may
be temporary with an established life span, or they may be open ended.
iii) Committee: A group of people officially delegated to perform a function, such asinvestigating, considering, reporting, or acting on a matter. Committee, one or more
persons appointed or elected to consider report on, or take action on a particular
matter. It investigates analyses and debates the problem and makes
recommendation. Committee usually has their own committee member comprising
of advisory authority, secretary and others. Recommendation is send to the authority
that is responsible for implementing them.
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Characteristics of formal groups
Created to carry out some specific task or to meet a required goal Explicitly stated defined structure, procedural rules and membership Relatively permanent or temporary(e.g. steering group or problem solving group) Defined roles and designated work assignments
Well defined norms Specified goals and deadlines
2) Informal Groups: An organizations informal groups are the groups that evolve to meet socialor affiliation needs by bringing people together based on shared interests or friendship. Thus,
informal groups are alliances that are neither formally structured nor organizationally
determined. These groups are natural formations in the work environment that appear in
response to the need for social contact. Many factors explain why people are attracted to
one another. One explanation is simply proximity; when people work near one another
every day, they are likely to form friendship. That likelihood is even greater when people also
share similar attitudes, personalities, or economic status.
i) Friendship Groups: Groups often develop because the individual members have oneor more common characteristics. We call these formations friendship groups.
Social alliances, which frequently extend outside the work situation, can be based on
similar age, same political view, attended the same college, etc.
ii) Interest Groups: people who may or may not be aligned into common command ortask groups may affiliate to attain a specific objective with which each is concerned.
This is an interest group.
iii) Reference Groups: some times, people use a group as a basis for comparison inmaking decisions or forming opinions. When a group is used in this way, it is reference
group. Employees have reference groups inside or outside the organization where
they work. For most people, the family is the most important reference groups. Other
important reference groups typically include co-workers, friends, and members of thepersons religious organization. The employee need not admire a group for it to serve
as a reference group. Some reference groups serve as a negative reference; the
employee tries to be unlike members of these groups.
iv) Membership groups: When a person does belong to a group (formal and informalgroups to which employee actually belong) the group is called a membership group
(Or affiliation group) for that person. Members of a group have some collection of
benefits and responsibilities that go beyond the group serving as a reference point.
In a membership group, each member would be expected to contribute to the
groups wellbeing and would enjoy the benefits arising from the group members
friendship.
v) Cliques: A relatively permanent informal groups that involves friendship. Most of therelationships came down to two cliques, each with a hanger-on, and some isolates.
The groups included several different professions. They developed ideas about each
other. Clique membership acted as a form of social control, forcing people to
conform group desires. The groups established norms regarding output, treatment of
supervisor, reciprocity and other interpersonal relations. The cliques served as a
system for sense making about organizational events. They developed their own set
of beliefs, explaining things to each other.
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Q.3 Explain the approaches of conflict management. [10]
There are two types of conflict management approaches:
Direct
IndirectDirect conflict management approaches
There are five approaches to direct conflict management. They are based on the relative
emphasis on co- cooperativeness and assertiveness in the relationship between the conflicting
parties. They are as follows:
Avoidance- it is an extreme form of inattention; everyone simply pretends that the conflict does
not really exist and hopes that it will go away.
Accommodation involves playing down differences among the conflicting parties and
highlighting similarities and areas of agreement. This peaceful coexistence ignores the realessence of a given conflict and often creates frustration and resentment.
Compromise- it occurs when each party gives up something of value to the others. As a result of
no one getting its full desires, the antecedent conditions for future conflicts are established.
Competition-here a victory is achieved through force, superior skill, or domination by one party.
It may also occur as a result of authoritative command, whereby a formal authority simply
dictates a solution and specifies what is gained and what is lost by whom. This is a case of win-
lose situation and as a result, future conflicts over the same issues are likely to occur.
Collaboration- it involves recognition by all conflicting parties that something is wrong and
needs attention. It stresses gathering and evaluating information in solving disputes and making
choices.
Assertive Competing collaborating
Compromising
Un-assertive un-cooperative cooperative
The table below shoes the appropriate conflict-handling situation.
Conflict-handling style Appropriate Situation
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Collaborating
1) To find an integrative solution when bothsets of concerns are too important to be
compromised2) When your objective is to learn3) To merge insights from people with
different perspectives.
4) To gain commitment by incorporatingconcerns into a consensus.
5) To work through feelings that hasinterfered with a relationship.
Compromising
1) When goals are important, but not worththe effort or potential disruption of more
assertive modes.
2) When opponents with equal power arecommitted to mutually exclusive goals.
3) To achieve temporary settlements tocomplex issues.
4) To arrive at expedient solutions under timepressure.
5) As a backup when collaboration orcompetition is unsuccessful.
Competing
1.when quick, decisive actions is vital(e.g.;
emergencies
2. on important issues where unpopular
actions need implementing(e.g., cost
cutting, enforcing unpopular rules, discipline)
3. On issues vital to company welfare whenyou know you are right.
4. Against people who take advantage of
non-competitive behavior
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Avoiding
1) When an issue is trivial, or more importantissues are pressing.
2) When you perceive no chance ofsatisfying your concerns
3) When potential disruption outweighs thebenefits of resolution.
4) To let people cool down and regainperspective.
5) When others can resolve the conflictmore effectively
6) When issues seem tangential orsymptomatic of other issues.
Accommodating
1) When you find you are wrong-to allowa better position to be heard, to learn,and to show your reasonableness.
2) When issues are more important toothers than to you-to satisfy others and
maintain cooperation.
3) to build social credits for later issues.4) To minimize loss when you are
outmatched and losing.
5) When harmony and stability areespecially important.
6) To allow employees to develop bylearning from
Indirect conflict management approaches
Indirect conflict management approaches include reduced interdependence, appeals to
common goals, hierarchical referral, and alterations in the use of mythology and scripts
(Schermerhorn et al 2002)
Reduced interdependence when work-flow conflicts exist, managers can adjust the level of
interdependency among units or individuals (Walton & Dutton, 1969). To reduce the conflict,
contact between conflicting parties may be reduced. The conflicting units can then be
separated from one another, and each can be provided separate access to resources.
Buffering is another technique to build an inventory, or butter, between the two groups so that
any output slowdown or excess is absorbed by the inventory and does not directly pressure the
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target group.
Appeals to common goals an appeal to common goals can focus on the mutual
interdependence of the conflicting parties to achieve the common goal of an organization.
Hierarchical Referral- Here conflicts are reported to the senior levels to reconcile and solve.
Q.4 the environmental stressors have a great impact on work performance and adjustment ofthe individual in an organization. Discuss the different categories of environmental stressors.
While environmental factors are forces outside the organization, which may act as potential
sources of stress due to uncertainties and threats that they create for any organization and its
members, factors within organization can also act as a potential source of stress. Together or
singly they may create a tense and volatile working environment which can cause stress for
organizational members because the inability of individuals to handle the pressures arising out of
these sources.
For the purpose of analysis and understanding, stressors are divided into two classes:
Those that lie within the individual, and Those that are a part of the external environment
Internal stimuli for stress: The internal sources of stress are complex and difficult to isolate. There
are three internal sources of stress. Each of these internal influences on stress is considered
separately, although they function in continual interaction.
1) Inner Conflicts: for many people, stress is a constant companion regardless of how favorableor unfavorable external conditions may be. Non Specific fears, anxiety and guilt feelings
maintain the body in a state of readiness for emergency action on a continuing basis.
2) Perceptual Influences: Perception is influenced by a number of internal factors. Certainlypeople with inner conflicts sufficient to cause stress are more likely than self-confident people
to perceive environmental conditions as threatening. Because the environment is presumed
to be full of danger, evidence of danger is perceived everywhere. They are selectively
perceived in exaggerated form.3) Thresholds of stress: the threshold of stress is not independent of the two factors just
discussed. People who have few internal conflicts and a minimum of perceptual distortion
can withstand external conflict and pressure that weaker personalities would find intolerable.
People who have high thresholds for stress have high levels of resistance to it.
4) Motivational Level: People who are ambitious and highly motivated to achieve are morelikely to experience stress than those who are content with their career status. Persons whose
self-expectations exceed their abilities and opportunities are especially stress prone.
Environmental stressors
Environmental and internal conditions that lie beyond an individuals control are called
environmental stressors. Such stressors can have considerable impact on work performance
and adjustment. We can organize environmental stressors into the following categories.
i) Task demand: Task demands are factors related to a persons job. They include thedesign of the individuals job, working conditions, and the physical work out.
Changes and lack of control are two of the most stressful demands people face at
work. Change leads to uncertainty, a lack of predictability in a persons daily tasks
and activities and may be caused by job insecurity related to difficult economic
times. Technology and technological innovation also create change and uncertainty
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for many employees, requiring adjustments in training, education and skill
development.
Lack of control is a second major source of stress, especially in work environments
that are difficult and psychologically demanding. The lack of control may be
caused by inability to influence the timing of tasks and activities, to select tools or
methods for accomplishing the work, to make decisions that influence workoutcomes, or to exercise direct action to affect the work outcomes.
ii) Role Demand: the social-psychological demands of the work environment may beevery bit as stressful as task demands at work. Role demands relate to pressures
placed on a person as a function of the particular role he or she plays in the
organization. Role conflicts create expectations that may be hard to reconcile or
satisfy. Role conflicts result from inconsistent or incompatible expectations
communicated to a person. The conflict may be an inter-role, intra-role or person-
role conflict.
a) Inter-role conflict: is caused by conflicting expectations related to two separate roles,such as employee and parent. For example, the employee with major sales presentation
on Monday and a sick child at home is likely to experience inter-role conflict,b) Intra-role conflict: is caused by conflicting expectations related to a single role, such as
employee and parent. For example, the manager who presses employees for both very
fast work and high quality work may be viewed at some point as creating a conflict for
employees.
c) Person-role conflict: Ethics violations are likely to cause person-role conflicts. Employeesexpected to behave in ways that violate personal values, beliefs or principles experience
conflict.
The second major cause of role stress is role ambiguity. Role ambiguity is created when role
expectations are not clearly understood and the employee is not sure what he or she is to
do. Role ambiguity is the confusion a person experiences related to the expectations of
others. Role ambiguity may be caused by not understanding what is expected, not knowinghow to do it, or not knowing the result of failure to do it.
III) Inter-personal demands: are pressures created by other employees. Lack of social
support from colleagues and poor interpersonal relationship can cause considerable stress,
especially employees with a high social need. Abrasive personalities, sexual harassment and the
leadership style in the organization are interpersonal demands for people at work.
1) The abrasive person: May be an able and talented employee, but one who createsemotional waves that others at work must accommodate.
2) Sexual Harassment: the vast majority of sexual harassment is directed at women in theworkplace, creating a stressful working environment for the person being harassed, as well as
for others.
3) Leadership Styles: whether authoritarian or participative, create stress for differentpersonality types. Employees who feel secure with firm, directive leadership may be anxious
with an open, participative style. Those comfortable with participative leadership may feel
restrained by a directive style.
4) Physical Demands: Non-work demands create stress for people, which carry over into thework environment or vice versa. Workers subject to family demands related to marriage,
child rearing and parental care may create role conflicts or overloads that are difficult to
manage. In addition to family demands, people have personal demands related to non-
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work organizational commitments such as religious and public service organizations. These
demand become more or less stressful, depending on their compatibility with the persons
work and family life and their capacity to provide alternative satisfactions for the person.
2. Q.5 given below are certain instances observed by the summer trainee Ritu, whilemaking an observational study at Global Green consultants. An organization dealingwith recycling of plastic products waste etc. She makes the following observation about
two key people in the organization.
1. Mr. PatnayakHe is a very friendly person and encourages his team members by giving those
recommendations and appreciations. This helps HR to decide about giving a bonus or promotion
to employees.
2. Mr. Dutta - He is an aggressive person. He frequently loses his temper. Ritu observes that he
frequently punishes the non-performers and also give them warnings regarding suspension etc.
Now explain what base of power does Mr. Patnayak and Mr. Dutta belongs to. Explain the type
of power they use often
Ans: Power can be categorized into two types: formal and informal
A. Formal Power: it is based on the position of an individual in an organization. Formalpower is derived from either ones ability to coerce or reward others or is derived from
the formal authority vested in the individual due to his/ her strategic position in the
organizational hierarchy. For example, a manager may threaten to withhold a pay raise,
or to transfer, demote, or even recommend the firing of a subordinate who does not act
as desired. Such coercive power is the extent to which a manager can deny desired
rewards or administrator punishments to control other people. The availability of
coercive power also varies across organizations. The presence of unions and
organizational policies on employee treatment can weaken this power base significantly.
Formal power may be categorized into four types which are as follows:
Mr. Dutta is based on Coercive Power
1. Coercive Power: the coercive power base is being dependent on fear. It is based on the
application, or the threat of application, of physical sanctions such as the infliction of pain, the
generation of frustration through restriction of movement, or the controlling by force of basic
physiological or safety needs. In an organization one can exercise power over another if they
have the power to dismiss, suspend, demote another assuming that the job is valuable to the
person on who power is being unleashed.
Mr. Patnayak is based on Reward Power
2. Reward Power: the opposite of coercive power is reward power. Reward power is the extent
to which a manager can use extrinsic and intrinsic rewards to control other people. Examples of
such rewards include money, promotions, compliments, or enriched jobs. Al though all
managers have some access to reward, success in accessing and utilizing rewards to achieve
influence varies according to the skills of the manager.
3. Legitimate Power: the third base of position power is legitimate power, or formal authority. It
seems from the extent to which a manager can use subordinates internalized values or beliefs
that the boss has a rightof command to control their behavior. For example, the boss may
have the formal authority to approve or deny such employee requests as job transfers,
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equipment, purchases, personal time off, or overtime work. Legitimate power represents a
special kind of power a manager has because subordinates believe it is legitimate for a person
occupying the managerial position to have the right to command.
The lack of this is legitimacy will result in authority not being accepted by subordinates. Thus this
type of power has the following elements:
It represents the power a person receives as a result of his/her position in the formalhierarchy.
Positions of authority include coercive and reward powers. Legitimate power, however, is not limited to the power to coerce and reward. It
encompasses the acceptance of the authority of a position by members of an
organization.
4. Information Power: this type of power is derived from access to and control over
information. When people have needed information, others become dependent on them.
(For example, managers have access to data that subordinates do not have). Normally the
higher the level, the more information would be accessed by managers.
B. Personal Power: personal power resides in the individual and is independent of thatindividuals position. Three bases of personal power are expertise, rational persuasion
and reference.
Expert Power is the ability to control another persons behavior by virtue of possessing
knowledge, experience, or judgment that the other person lacks, but needs. A
subordinate obeys a supervisor possessing expert power because the boss ordinarily
knows more about what is to be done or how it is to done than does the subordinates.
Expert power is relative, not absolute. However the table may turn in case the
subordinate has superior knowledge or skills than his/her boss. In this age of technology
driven environments, the second proposition holds true in many occasions where the
boss is dependent heavily on the juniors for technologically oriented support.
Rational persuasion is the ability to control anothers behavior, since, through theindividuals efforts; the person accepts the desirability of an offered goal and a viable
way of achieving it. Rational persuasion involves both explaining the desire ability of
expected outcomes and showing how specific actions will achieve these outcomes.
Referent power is the ability to control anothers behavior because the person wants to
identify with the power source. In this case, a subordinate obeys the boss because he or
she wants to behave, perceive, or believe as the boss does. This obedience may occur,
for example, because the subordinates likes the boss personally and therefore tries to do
things the way the boss wants them done. In a sense, the subordinate attempts to avoid
doing anything that would interfere with the pleasing boss-subordinate relationship.
Followership is not based on what the subordinate will get for specific actions or specific
levels of performance, but on what the individual represents- a path toward lucrative
future prospects.
Charismatic power is an extension of referent power stemming from an individuals
personality and interpersonal style. Others follow because they can articulate attractive
visions, take personal risks, demonstrate follower sensitivity, etc
Q.6 Fashion4Now is a famous and old magazine. The top management decides to start the e -
edition of the magazine. They also decide the redefine the policies and culture of window to
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truth To start implementing, this change, they frequently call meetings of employees. They have
also formed groups at different levels to clarify doubts and explain the perspective of change.
Analyze the situation in the context of organizational change and elaborate why the top
management is following the discussed practices and what approach is most evident in the
context. [10]
Ans:Forces for change are of two types:
Internal forces External forces
Internal forces
Any change in organizations internal factors may also necessitate change. Such a change is
required because of two reason; change in managerial personnel and deficiency in existing
organizational practices.
Change in the top management: change in the top management and consequent change in
the ideas to run the organization also leads to change in the system, structure and processes.
Old mangers are replaced by new managers which are necessitated because of retirement,
promotion, transfer or dismissal. Each new manager brings his own ideas and ways of workinginto the organization. The formal or informal relationship may change because of changes in top
management. Moreover attitudes, ideology, leadership style of the person may be different
from the earlier one, this will reflect in their actions and decisions. The result is that an
organization has to change accordingly.
Change in size of the organization: change in the organizations size leads to change in the
internal structure and complexity of the operations in the organizations.
Performance gaps: when a gap between set target and actual results (in terms of market share,
employee productivity and profit) is identified, organizations face the forces to change and
reduce the gap.
Employee needs and Values: with changing needs and values of the employees, organizations
change their policies. For example, attractive financial incentives, challenging assignments,vertical growth opportunities and autonomy at work may be provided in an organization to
attract and retain its effective employees.
Deficiency in existing organization: Some times, changes are necessary because of deficiency
in the present organizational arrangement and process. These deficiencies may be in the form
of unmanageable span of management, large number of managerial levels, lack of co-
ordination between various departments, obstacles in communication, multiplicity of
committees, lack of uniformity in policy decisions, lack of cooperation between line and staff
and so on.
External Forces
Each organization has goals and responsibility related to others in its environment. Thus, an
organization must not only deal with its environment in conducting its affairs, but also give
consideration to the goals of others, as it establishes its goals and conducts its operations. The
present day environment is dynamic and will continue to be dynamic. Changes in social,
political, economic, technological, and legal environment force organizations to change
themselves. Such changes may result in organizational changes like major functions, production
process, labor management relations; nature of competition, economic constraints,
organization method, etc. in order to survive in the changing environment, organization must
change.
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Technology: technological changes are responsible for changing the nature of job performed
at all levels in an organization. When there is a change in technology in the organizations
environment and other organizations adopt the new technology, the organization under focus
become less cost-effective and its competitive position weakens. Therefore, it has to adopt new
technology. When the organizations adopt a new technology, its work structures are affected
and a new equilibrium has to be established. We have seen that technology has impact onorganization structure, organizational process, and behavior of people. For example, computers
and automation have made significant impact on organizational functioning.
Business scenario: Due to rapid change in the business scenario with increasing competition and
global economy, the needs and demands are also changing among the customers, suppliers
and other stake holders. Organizations are, therefore, forced to change their operational
methods to meet the demands of the stakeholders. Since every organization exports its output
to the environment, an organization has to face competition in the market. There may be two
types of forces which may affect the competitive position of an organization- other
organizations supplying the same products and, buyers who buying the product. Any change in
these forces may require suitable changes in the organization. For example, when Indian
economy was liberalized (the process still continues, there were many foreign organizationswhich entered in the Indian market. This forced many Indian organizations to re-align themselves
with the new situation. The result is that there have been many cases of divesting the business
and concentrating on the core business, acquiring core business, and developing competitive
competence to face competitive threats. Similarly, there may be changes in buyers in terms of
their needs, liking-disliking, and income disposal for a product. These changes force the
organizations to bring those products which meet buyers requirements.
Environmental and national factors: environmental factors such as economic, political and
demographic and legal factors play a vital role in devising organizational policies and strategy.
Any change in these political and legal factors may affect the organizational operation. For
example, organizations may have to change their employment policies in accordance with the
government policy, demand of the non-government organizations and changing economicconditions of a country.
Social Changes: Social Changes reflect in term of peoples aspirations, their needs, and their
way of working. Social changes have taken place because of the several forces like level of
education, urbanization, feeling of autonomy, and international impact due to new information
sources. These social changes affect the behavior of people in the organization. Therefore it is
required to make adjustment in its working so that it matches with people.
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