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CS101 Introduction of computing
www.Virtualins .pk Prepared by Imran Baloch
www.virtualians.pk Prepared by: Irfan Khan
MGT502 Organizational Behavior Lecture Wise Questions and Answers
For Final Term Exam Preparation by Virtualians Social Network
MGT502 Organizational Behavior Lecture no.23
What are Behavioral Theories?
There are two types of Behavioral Theories
Ohio State and University of
Michigan
Ohio State is about Employee-Orientation and Production-Orientation
University of
Michigan is about Initiating Structure and
Consideration
What is Directive leader?
• Lets employees know what is expected of them, schedules work to be done, and gives specific
guidance as to how to accomplish tasks.
What is Supportive leader
• Is friendly and shows concern for the needs of employees.
What is Participative leader
• Consults with employees and uses their suggestions before making a decision.
What is Achievement-oriented leader
• Sets challenging goals and expects employees to perform at their highest levels.
CS101 Introduction of computing
www.Virtualins .pk Prepared by Imran Baloch
www.virtualians.pk Prepared by: Irfan Khan
What is Trait of a Charismatic Leader
• Self-confidence
• A vision
• Strong conviction in that
vision
• Out of the ordinary behavior
• The image of a change agent
Two Types of Charismatic Leaders
– Visionary Charismatic Leaders
• Through communication ability, the visionary charismatic leader links followers‟
needs and goals to job or organizational goals.
– Crisis-Based Charismatic Leaders
• The crisis-produced charismatic leader communicates clearly what actions need to
be taken and what their consequences will be.
Transformational leaders
– Leading -- changing the organization to fit the environment
– Develop, communicate, enact a vision
Transactional leaders
– Managing -- linking job performance to rewards
– Ensure employees have necessary resources
– Apply contingency leadership theories
What is Five Dimensions of Trust
CS101 Introduction of computing
www.Virtualins .pk Prepared by Imran Baloch
www.virtualians.pk Prepared by: Irfan Khan
• Integrity (honesty and truthfulness)
• Competence (technical/interpersonal)
• Consistency (reliability, predictability and good judgment in handling situations)
• Loyalty (willingness to protect and save face for a person)
• Openness (willingness to share ideas and information freely)
What is Types of Trust
• Deterrence-based trust
• Trust based on fear of reprisal if the trust is violated
• Knowledge-based trust
• Trust based on the behavioral predictability that comes from a history of interaction
• Identification-based trust
• Trust based on an emotional connection between the parties
What is Contingency Theories. Explain it
Contingency theory is a behavioral theory
It tells us in simple way there is no single best way to design organizational structures.
The best way of organizing e.g. a company, is, however, contingent upon the internal and
external situation of the company.
Contingency Theory of Organizations
CS101 Introduction of computing
www.Virtualins .pk Prepared by Imran Baloch
www.virtualians.pk Prepared by: Irfan Khan
Trait Theories of Leadership...
Trait Theories of Leadership are used for predicting where leadership effectiveness is effective
or not.
The trait model of leadership is base on the characteristics of many leaders successful and
unsuccessful
Leadership
Leadership is the ability to inspire confidence and support among the people who are needed to
achieve organizational goals. Management consists of four functions: Planning, organizing,
controlling and leading. Leading is the major part of a manager‟s job yet a manager must also
plan, organize and control. Broadly speaking, Leadership deals with the interpersonal aspects of
a manager‟s job, whereas planning, organizing and controlling deals with administrative aspects.
Leaders deal change, inspiration, motivation and influence. In contrast management deals more
with maintaining equilibrium and the status quo.
Vision:
Vision is the ability to imagine different and better conditions and better way to achieve them.
The visionary people look beyond the immediate future to create an image of what the
organization or unit is capable of becoming. A vision is deigned to close the discrepancy
between present and ideal condition.
Self- worth:
Self worth is the positive opinion about one‟s own self. When a person thinks that he is capable
of doing any task in a good manner.
Feel free to ask course related questions on MDB.
Legitimate power
Legitimate power emerges as one‟s formal power due to his position in the hierarchy of an
organization; one can have this power in his day to day business, in other words one can have
this power due to his responsibilities in a certain organization, Legitimate power can increase by
CS101 Introduction of computing
www.Virtualins .pk Prepared by Imran Baloch
www.virtualians.pk Prepared by: Irfan Khan
adding the responsibilities, as well as it can decrease if someone fails to meet all the
responsibilities, legitimate power is also viewed as coercive and reward power
Deference trust and where fear of reprisal exist then how trust can be remained among people
Deterrence-based trust is actually based on consistency of behavior continued by the threat or
promise of consequences in case the consistency is not maintained. For example: A trading
partner (supplier) do what they say they will do because of a fear of punishment (cancellation of
contracts), if they do not perform and supply consistently. Here the threat of punishment is seen
as a negative factor.
In path goal theory leaders are less motiveted or managers?
Path goal theory specifies that the leader‟s responsibility is to increase followers‟ motivation to
attain organizational goals. The essence of path goal theory is that the leader‟s job is to assist
followers in attaining their goals and to ensure that their goals are compatible with the overall
objectives of the group or organization. A leader‟s behavior is acceptable to employees to the
degree that they view it as an immediate source of satisfaction or as a means of future
satisfaction. The leader will not be able to motivate his followers unless he himself is not
motivated.
what is defference between leader and managers?
Manager is someone who works with and through other people by coordinating their work
activities in order to accomplish organizational goals.
Leader is someone who can influence others and who has managerial authority.
Managers are appointed to their position. Their ability to influence is based on appointed or
emerge from within a work group while leaders are able to influence others to perform beyond
the actions dictated by formal authority.
CS101 Introduction of computing
www.Virtualins .pk Prepared by Imran Baloch
www.virtualians.pk Prepared by: Irfan Khan
Charismatic leadreship?
Charisma is the special quality of leaders like extraordinary determination that differentiate them
from others. The main feature of charismatic leadership is that it involves very strong
relationship and interaction between the leader and the people being led. Charismatic leaders are
visionary, action oriented with very effective communication skills and self-promoting
personality
MGT502 Organizational Behavior Lecture no.24
What is Contingency approaches?
Contingency approaches are leadership models that describe the relationship between leader‟s
styles and specific organizational situations. It includes leadership model developed by Fiedler
and his associates, the situational theory of Hersey and Blanchard, and path goal theory.
What is Coercive power?
Coercive power is the ability of the power holder to remove something from a person or gain his
personal interest. For example: A threatened strike action by a labor union to force the
management to accept their demands. Or another example can be the threat of preventing
promotion or transfer of a subordinate for poor performance.
What is Deterrence-based trust?
Deterrence-based trust depends on consistent behavior and the threat of punishment; it is based
on fear of reprisal in the case of violation of trust. It can be long-run, but in organizational
perspective most of the time it is short term. Because these relationships are not long lasting and
it lasts until the position hold by the person is changed.
What is "POWER AND POLITICS"?
Power can be defined as “the ability of a person to influence the behavior of others to get things
done is the manner he/she wants them to be done.” Or we can say that “It is ones capability to
influence others.”
For instance, a manager in a company has power of both rewards and punishment, so he uses
these powers in effective way to mold behaviors of the workers for the betterment of the
CS101 Introduction of computing
www.Virtualins .pk Prepared by Imran Baloch
www.virtualians.pk Prepared by: Irfan Khan
organization. He punishes them to correct their destructive behavior and on other hand uses the
reward power to strengthen their good behavior in favor of the organization.
Politics in Organization are informal and unofficial efforts to influence organization and increase
power for the achievement of any specific objectives. Organizations are comprised of individuals
with different values, interests and goals, so for achievement of their interests, they use politics.
For Example, Labor and workers unions play a vital role in the organizations for the achievement
of the objectives in shape of resources.
Power and politics are reality of today‟s organizations. Many people and groups use them in
organizations to have control on the scarce resources. It is the main responsibility of a manager
to understand and manage them for the success of the organization and control conflicts.
MGT502 Organizational Behavior Lecture no.25
The first stage of "Conflict process" is:
Potential Opposition or incompatibility
In conflict process, first stage points out towards presence of conditions that can create
opportunities for conflict to arise. They may not directly cause conflict to arise but these
conditions are necessary for conflicts to surface.
There are five conflict handling intentions:
1. Competing
2. Collaborating
CS101 Introduction of computing
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3. Avoiding
4. Accommodating
5. Compromising
These intentions provide guideline to the parties in conflict to adopt certain course of action.
what are the antecedent conditions?
The word "Trivial" means of little worth,value or importance.
"Antecedent conditions" refer to the preceding conditions being applied after some events or
occurence. These are actually the conditional elements.
What is meant by this that political behavior can circumvent the lack of organizational power?
Also Explain zero sum allocation?
The answer to the first part of your question is that, as you know that Organizational Power
which is more often known as the Legitimate Power is derived by a person because of his/her
formal position in an organization where he/she works.
For example, If Mr. Aslam is the Director (Finance) of an organization, then the power exerted
by Mr. Saleem on the employees of the Finance Department is simply because he is the director
of this particular department.
Now, „political behavior‟ is any action by a person which is aimed to attain power or simply to
influence decisions. And, the term „circumvent‟ simply means to „bypass‟ or „ignore‟ something.
Now, by examining the whole phrase “political behavior can circumvent the lack of
organizational power”, it simply means that when the different positions in an organization (from
which the organizational/legitimate power is derived) are not clearly defined then employees of
that organization ignore the formal reporting channels of different positions and do certain
actions which can be termed as political behaviors.
For example, in an organization, there are 3 positions namely Manager (Finance), Deputy
Manager (Finance), and Assistant Manager (Finance). The reporting channel in that company is
that Assistant Manager (Finance) reports to Deputy Manager (Finance) who then reports to
CS101 Introduction of computing
www.Virtualins .pk Prepared by Imran Baloch
www.virtualians.pk Prepared by: Irfan Khan
Manager (Finance). And it is not clearly mentioned in the company‟s policy that the Assistant
Manager (Finance) would first request the Deputy Manager (Finance) for a leave who will then
forward the leave request to the Manager (Finance), and assume that the Manager (Finance) has
the authority to grant leave. Then in this case the Assistant Manager (Finance) may bypass or
ignore the Deputy Manager (Finance) and ask the Manager (Finance) directly for favour in leave.
Now, the second part of your question is about “zero-sum allocation” which is also known as
Zero-Sum rewards. Zero-Sum is that situation in which two entities cancel the effect of each
other to give a zero. For example, someone says that you have 3 good qualities in your
personality, but the same person also highlights your 3 bad qualities, then to sum it, your good
qualities and bad qualities cancel the effect of each other to form a „zero‟, this is zero-sum effect
or zero-sum allocation.
In Organizational Behavior, we say that Zero-Sum Allocations is a factor that contributes to
Political Behavior. For example, when an employee Mr. Naveed is rewarded, he will feel happy,
but when he is assigned a burden of duties, and if that rewards and additional duties are assumed
by Mr. Naveed to be some what equal, it will create a „zero-sum effect‟ and Mr. Naveed will not
be motivated, and he will tend to engage in political behaviors to reduce those additional duties
or increase reward, because he will think that the previous reward was not enough when
compared with the additional duties.
MGT502 Organizational Behavior Lecture no.27
Difference between "compromising and collaboration style".
Compromising is the reaction of a conflict where both parties reach to mutually acceptable
solution by achieving only a part of his or her objectives. This style is appropriate in situations
where speedy solution is more important than to find the best solution.
Collaboration is the reaction of the conflict in which both parties work together to achieve their
objectives. It is appropriate in situations where commitment is highly desirable.
CS101 Introduction of computing
www.Virtualins .pk Prepared by Imran Baloch
www.virtualians.pk Prepared by: Irfan Khan
360-degree feedback
360-degree feedback, also called 'multi-rater feedback', is employee development feedback. In
360-feedback, feedback is gathered from subordinates, managers, peers as well as person
himself. In some cases external factors like customers or suppliers are also involved in feedback.
Opportunity Network
Influential networks are very important for every person as they bring different career
opportunities for him. Therefore the group of high-achievers and influential people that can be
helpful for a person in his career development is called opportunity network.
Reinforcement theory
Reinforcement theory is the process through which the behavior of an individual can be shaped
by controlling the outcomes of a behavior. In this theory combination of rewards and/or
punishment is used to strengthen desired behavior or eliminating undesirable behavior.
Positive reinforcement means following a response with something pleasant. For example if a
sales man makes high sales, he will get a commission. Or if any employee work hard and do a
good job then he will get a bonus or promotion.
Negative reinforcement means following a response by the termination or withdrawal of
something unpleasant. For example for a student negative reinforcement is to get “F” grade in
exams.
Punishment is causing an unpleasant condition in an attempt to eliminate an undesirable
behavior. For example: Pay reduction for lateness.
Extinction When the behavior is not reinforced, it tends to gradually be extinguished. For
example if a child is conducting an undesirable behavior then just ignore him when he will find
no response then he will ultimately leave it.
CS101 Introduction of computing
www.Virtualins .pk Prepared by Imran Baloch
www.virtualians.pk Prepared by: Irfan Khan
Political behavior better for the organization
Organizational politics have both positive and negative effects. The ethical use of political power
can motivate people to work together to accomplish common goals that provide overall benefits
to both individuals and organizations. But, the use of political power for personal objectives may
benefit individuals only and in long-run can badly effect trust, loyalty and commitment of
employees.
MGT502 Organizational Behavior Lecture no.28
Maintenance roles
Maintenance role deals with building positive relationships within a group. People who take on
maintenance roles include those who encourage quite members to participate or try to neutralize
a tense situation. For example a leader who inspires group members to cooperate or injects
humor at tense or boring time.
Bias
Bias refers to inclination, tendency or preference towards something which affects the balanced
judgment. It can be either in favor or against any person, thing or group in comparison with
another. It leads to rash decisions and discriminatory actions on our part.
In-group Bias
If a group manager supports his group only, it can be termed as “In-group Bias”, which is a
phenomenon of in-group favoritism and preference for the members within one‟s group over
those outside
Difference between a manager & coalitions
CS101 Introduction of computing
www.Virtualins .pk Prepared by Imran Baloch
www.virtualians.pk Prepared by: Irfan Khan
Managers are individuals who work in an organization and get things done thorough other
people. They make decisions, allocate resources and direct the activities of others to attain goals.
Coalition is an agreement or treaty between individuals and groups , during which they
cooperate in joint action, each in their own self interest, getting forces together for a common
cause. This alliance may be temporary or a matter of convenience.
MGT502 Organizational Behavior Lecture no.29
What is Legitimate Power ?
Legitimate Power refers to the power which is vested in a particular position in the formal
hierarchy of a formal group or organization. This power is accepted by the members of the
organization or group and expected to be followed by all within authority of the particular
position.
For Example: A Production manager has the power to direct his subordinates to produce 400
items a day. The manager‟s position gives him the authority or power to order his subordinates
with his sphere of authority to act accordingly.
MGT502 Organizational Behavior Lecture no.30
hard work or smart work which is more successful
The smart work and the hard work are correlated and equally important while conducting any
sort of project. If you are working very hard towards some stuff with a wrong logic then it is of
no use and vice versa. Consequently, you should work hardly with smart ideas. Both are
important for achieving success in life.
Difference b/w Job enlargement & Job enrichment
CS101 Introduction of computing
www.Virtualins .pk Prepared by Imran Baloch
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Job enlargement is increase of the job‟s tasks (activities). For example: In making a wooden
table different tasks are involved which are completed by a team of skilled workers like cutting
of wood, shaping wooden pieces, joining them and painting. Suppose one of the workers
responsible for cutting of wood is assigned additional tasks of shaping wooden pieces and then
joining them in shape of table. This is job enlargement.
Job Enrichment is the addition to a job of tasks that increase the amount of employee control or
responsibility. For example a company may decide to cross train its HR generalists to use the
HRIS so they can run their own reports. Rather than submitting requests and waiting for
someone else to run the reports, they have the additional control over their job of being able to
get the reports whenever they need them.
Power is the ability to influence other person. It can be personal power or positional power while
authority is the legitimate power or the right to influence others.
MGT502 Organizational Behavior Lecture no.31
virtual structure
An organization that uses telecommunications and information technology to conduct its
operations so that it‟s geographically dispersed employees and operations can be managed and
collaborated properly. Virtual University of Pakistan is an example of Virtual Structure.
social class shapes thoughts and actions in organizations
Social class is the level of economic income or the status of a person and his perceived rank
within the social hierarchy of society. People from different social class have different
assumptions and beliefs and act accordingly. These differences if not managed properly can
create conflicts in organizations and resultantly cause decrease in overall productivity of
organization. Therefore management should consider these facts while developing the culture of
the organization as its culture is a source of shaping behaviors of employees according to the
requirements of organizations.
Organizational Design
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Organizational Design can be defined as a formal process of integrating organizational roles and
structure in such a way that it supports the organizational strategies. It is arrangement of process,
structure, metrics and rewards in effective way. It helps in understanding power relations and
functions.
Job Evaluation
Job Evaluation is a technique to rank jobs in an organization on the basis of the duties and
responsibilities assigned to the job. This term is used to evaluate or measure the job contents like
the complexity of jobs, importance of job responsibilities, its critical value within the
organization etc. For example the worth of regional manager is more than the peon of that
organization as the task related to regional manager is of more significance than that of peon, in
such way different jobs within an organization are evaluated & accordingly compensated.
MGT502 Organizational Behavior Lecture no.32
What is Unity of Command
Unity of Command states that “a subordinate should have only one superior to whom he or she is
directly responsible”.
As per the situation you are talking about, if a person is reporting to two managers for different
matters. Such reporting mechanism refers to dual chain of command applied in Matrix structures,
which negates and breaks “Unity of Command”.
Deliberately Structured means decision made on design of the working of an organization at
micro and macro level and design of working of departments and divisions as per requirements.
As a structure of educational institute may vary from the structure of a manufacturing firm, so
structures are deliberately designed as per specifications and requirements of the organizations.
The mechanistic organizations are those organizations that have formal rules and regulations
systems, centralized decision making authority, and high worker specialization. Like
bureaucratic or government organizations.
The organic organizations also called flexible management system as they show less rigidity, low
formalization and decentralized decision making authority.
CS101 Introduction of computing
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For further details watch lecture no 30.
Accountability means that people with authority and responsibility are subject to reporting and
justifying task outcomes to those above them in the chain of command. Accountability is often
built into the organization structure so that people may know they will be held accountable for
specific task.
Dual chain of command is opposite to unity of command. It is used in matrix structure where a
person has to report to more than one supervisor. One of them can be a functional head or other
can be from project head.
Allocation of specialist: In Matrix structure specialist from different functions or tasks are
combined to work on a project. In this way the project is done by the specialists that can ensure
high level of quality and speed
MGT502 Organizational Behavior Lecture no.33
Difference between downsizing and rightsizing.
Downsizing is to reduce the size of a business or organization, especially by cutting the work
force. It becomes important to reduce organizational expenditures which are exceeding from the
available resources. Although downsizing creates de-motivation among employees but
sometimes organizations have to adopt it to reduce its cost.
Rightsizing is corporate restructuring with the goal of reducing costs and improving efficiency
and effectiveness. Rightsizing can involve both increasing or reducing a company's workforce to
the point where the number of employees remaining is consider to be "right" for the company's
current condition.
Selecting job
Selecting job candidate is one of the functions of HRM. In recruitment process a pool of eligible
candidate is generated. And after interviewing the most appropriate person is selected for a
particular job. This process is called “selecting job candidate.”
CS101 Introduction of computing
www.Virtualins .pk Prepared by Imran Baloch
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MGT502 Organizational Behavior Lecture no.34
Job Description is a written list pertaining to the tasks, responsibilities, account-abilities
functions, specifications and qualifications required for any position. It is important document
usually narrative in nature explaining whom to report, salary range and hierarchical position of
the job in organization.
Job specification determines employee characteristics (like age, qualification, gender etc) to
perform a particular job, reporting relations and working conditions.
The reward package offered to an employee for his/her performance on the relative position
within an organization is termed as a compensation package. It includes both monetary & non-
monetary rewards.
Performance appraisal may be defined as a structured & formal method to evaluate employees'
performance to check whether the set goals are met or not.
Job Description is a written list pertaining to the tasks, responsibilities, accountabilities,
functions, specifications and qualifications required for any position. It is important document
usually narrative in nature explaining whom to report, salary range and hierarchical position of
the job in organization.
MGT502 Organizational Behavior Lecture no.35
Compensation is the total of all rewards/incentives provided to an employee for his/her services.
It can be given in monetary or nonmonetary terms. Direct monetary compensation refers to the
salaries, wages, commissions, bonuses and indirect monetary compensation is paid in the form of
benefits such as health care facilities, life insurance, employee stock option plans, family and
medical leave etc.`
CS101 Introduction of computing
www.Virtualins .pk Prepared by Imran Baloch
www.virtualians.pk Prepared by: Irfan Khan
Incentives are the part of compensation for example individual incentives include piece rate
incentives, commissions and bonuses, skill based incentives and pay raises. Other than individual
incentives, some times organizations give group incentives such as gain sharing and profit
sharing.
Lateral skill path is the movement of an employee to another equivalent designation. It provides
opportunities to develop new skills and employees are rewarded by increased job challenge
rather then pay increments. For example assistant admin officer can be switched to assistant HR
officer. Where his designation will remain same but he may learn a different set of skills or
experience.
The Development Phase
In effective career development, there are three phases which are:
• The Assessment Phase
• The Direction Phase
• The Development Phase
In development phase practical actions are taken in order to increase the skills and capabilities of
an employee for any possible future opportunity. In this phase emphasis is given on the self
improvement and growth of the employees.
To achieve this goal, the following techniques are used:
• Tuition assistance programs are used to help the employees to plan there careers and provided
with enough information so that they have better choices in choosing the career.
• Job rotation is applied to broaden the horizon and experience of the individuals.
• Mentoring and coaching is done by the senior employees to provide guidance and assistance.
CS101 Introduction of computing
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MGT502 Organizational Behavior Lecture no.36
Job Incumbents is used for a person who is currently holding a job or position.
Demotion means a reduction in the rank, status, or position of somebody. Demotion can be
because of organizational politics, lack of educational requirements or lack of appropriate
behavior or any unethical or immoral activities within the premises of the organization.
The halo effect refers to a cognitive bias whereby the perception of a particular trait is influenced
by the perception of the former traits in a sequence of interpretations. When we consider a
person good (or bad) in one category, we are likely to make a similar evaluation in other
categories.
Stereotyping is judging someone on the basis of perception of the group to which he or she
belongs. For example people usually perceive about Blacks that they are good athlete and
Europeans like privacy etc.
Vertical/Horizontal Differentiation
The mechanistic organizations are those organizations that have formal rules and regulations
systems, centralized decision making authority, and high worker specialization. Like
bureaucratic or government organizations. Mechanistic structure is vertically designed and a
strict chain of command is observed. Horizontal differentiation is done among the same units or
functions of an organization. It is based on the education, experience and training of employs and
the nature of jobs they perform. While vertical differentiation is about the number of hierarchical
levels that an organization has.
Culture
Culture is a set of key values, assumption, beliefs, understanding and norms that members of an
organization share. It is a pattern of shared assumptions about how things are done in the
organization. This pattern is invented or learned as organizational members cope with internal
and external problems and than taught to new members as the correct way to perceive, think and
feel in relation to those problems. Material symbols: A symbol may be an object, act or event
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that conveys special meaning to others. Rite, ceremonies and stories are symbols. Other symbols
are physical artifacts of the organization. These are very important as they focus attention on a
specific item and its meaning. For example, when a CEO gives increment to innovative and
creative employees he emphasizes the importance of innovation in his organization.
MGT502 Organizational Behavior Lecture no.37
Radical change and Revoluntary change
When a firm adopts or brings sudden and major changes in its processes or procedures, it is
called radical change. For example in past all the production of firms was done through manual
processes and through labor force, but with the advent of technology some organizations have to
change their ways of doing business on immediate bases to remain competitive or ahead of the
competitors.
Define dominant culture and subculture
The set of key values, assumptions, beliefs, understandings and norms that members of an
organization share is called its culture. The overall culture of an organization is its dominant
culture. While dominant culture has many subcultures. Culture is a pattern of shared assumption
about how things are done in an organization. This pattern is invented or learned as
organizational members cope with internal and external problems and then taught to new
members as the correct way to perceive, think and feel in relation to those problems.
Sub cultures are the mini-cultures within an organization that are developed and shared by the
members of a team, function or a department. It is the combination of common goals, problems
and experiences.
Rituals are organized and planned activities that make up a special event and are often conducted
for the benefit of an audience. Company managers can schedule rites or ceremonies to provide
dramatic examples of what the company values. These are special occasions that reinforce
valued accomplishments, create a bond among people by allowing them to share an important
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event. For example one of the prestigious pharmaceutical companies of Pakistan sends its best
sales person on foreign tours on achieving annual sales goals. These kinds of rituals strengthen
and reinforce employee‟s commitment to the goals of the organization.
MGT502 Organizational Behavior Lecture no.38
Power
Power is a person‟s potential to influence other people‟s behavior or to resist the influence of
others while empowerment is the delegation of power or authority to subordinates in an
organization.
What is Business process reengineering ?
Business process reengineering is a basic concept of Organizational Development, it helps the
organization to fundamentally rethink that how they redesign their processes to support their
mission and reduce cost.
Following are some reasons that why organizations need process reengineering?
When organizations need to improve their customer services
when they need to reduce their operational costs
to be more innovative
to become a world class competitor
Business leader organizations are becoming bolder in using this technology to support their
mission and to keep their competitive position high.
CS101 Introduction of computing
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What is Candidate order error?
Candidate order error is an error of judgment on the part of interviewer due to interviewing one
or more very good or very bad candidates just before the interview in question. Candidate order
error is same like Contrast Effect.
Candidate order error means the order in which you see the applicants affect how you rate them.
For example at time managers evaluate an average candidate with high scores after evaluating
many unfavorable candidates, because in contrast to those unfavorable candidates that average
candidate looks much better than he actually is. So this error of judgment is called contrast effect
or candidate order error.
MGT502 Organizational Behavior Lecture no.39
Bureaucratic structure,
In Bureaucratic structure, highly routine operating tasks are achieved through specialization,
formalized rules and regulations. In it, tasks are divided into functional departments, there is
centralized authority in place, span of control is narrow and decisions are made in a formal chain
of command. It is used in the environments, where there is high complexity. The disadvantage
associated with it is that it is very rigid and very slow in adoption of the changing environment.
The role of 360 degree feedback in the measurement of performance
360 feed back is a multisource or multi rater feed back , in which an employee get feed back
from his / her supervisor, peers, coworkers and also from his or herself .
360 Feedback as a Development Tool to help employees recognize strengths and weaknesses and
become more effective.
360 feedback measures behaviors and competencies
360 assessments provide feedback on how others perceive an employee
360 feedback concentrates on skills such as listening, planning, and goal-setting
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A 360 evaluation focuses on subjective areas such as teamwork, character, and leadership
effectiveness
how can we asses interpersonal skills of interviewee
As we know that interpersonal skills are the skills use to interact with others, these are referred as
communication skills, people skills or soft skills, how we deal with others can greatly influence
our professional and personal life.
To assess the interpersonal skills of an interviewee, most of the time professional interviewers
gave situations and ask him how he or she responded in that situation.
e.g. they may use situations like this….
Tell me about a time when you had to work closely with a coworker whom you disliked or with
whom you had trouble working. What did you do to make the relationship work so you could
succeed for your company?
Tell me about a time when you disagreed with the actions or decisions of your manager or
supervisor. How did you approach the situation? Was the situation resolved to your satisfaction
or did nothing change?
A good candidate may answer that how hedeveloped an effective relationship with his
coworkers and peers to resolve the situation.
What are Baby Boomers?
Baby Boomers are the individuals who born after world war-II, and retirement is a point when a
person stops employment copmletely, and gets pension benefits, and retiring of baby boomers
mean that people who born after world war-II, majorly in year 1946 are reached to the age to
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leave their employments completely, most of these people brought revolutionary change in
every aspect of life , but now their physical conditions (age factor) doesnot allow them to work
more.
MGT502 Organizational Behavior Lecture no.40
Difference between Salary and Compensation
Compensation refers to the sum of both monetary and non-monetary rewards provided to an
employee by an employer.
In Other words, it can also be defined as, the gross earning (salary) including all benefits and
perks that an employee gets for the service rendered. It includes bonuses, vacation, sick leave,
stock options as well as non-cash benefits and retirement plans.
Salary is part of compensation and refers to a the fixed amount of money paid to an employee
weekly, bi-weekly or monthly for work performed.
Difference between Gratuity & Provident Fund
Gratuity and provident fund are both employee benefit funds, the major difference is provident
fund is the equal contribuition from both employee as well as from employer side, while gratuity
is only paid by the employer at the end of employment contract of the employee, for provident
fund a specific amount or percentage of total salary of employee is deducted every month and
the same propotion is added from employer side, and let this amount to be collected in an
account and given to empolyee at the end of employment contract. while gratuity is total
contribution from employer which is mostly equal to employee's last pay drawn multiplied by
number of year worked in that organization.
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how we can save from stress or management stress
There are two approaches through which we can manage the stress carefully.
One is individual approach in which an employee himself tries to manage the stress with the help
of time management techniques, physical exercise, relaxation, and expanding social network.
The second one is organizational approach in which the organization tries to manage the stress
by improved personal selection, job placement, training, redesigning job and trough corporate
wellness programs.
MGT502 Organizational Behavior Lecture no.41
What is Overt resistance?
Overt resistance means a resistance that is open or not hidden, for example if any change comes
in organization the employees raise thier voices against it, is called overt resistance
Implicit Resistance means a resistance which apparently employees donot show if any change
comes in the environment or policies of organization,but they reduce the speed of work, make
mistakes, increased absenteeism due to " Sickness" and hence imlicit resistance is more difficult
to recognize.
Immediate Resistance means a resistance which higher management face when they annouce
any change in organization.
Deferred Resistance means a resistance which does come on surface immediately..it takes time ,
also called delayed resistance.
Scanlon plan
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Scanlon plan is a widely used form of gain sharing. It involves employee participation in
reducing labor costs. The two main features are a system of departmental and plant wide
screening committees to evaluate and implement employee cost saving suggestions and sharing
labor cost savings with employees as an incentive.
Stress is considered good when it becomes a cause of improving performance/productivity. For
example sometimes meeting or engaging in a challenge can be stressful, but this can lead to
maximum performance.
Contemporary change
There are few forces for change, which trigger the managers to incorporate changes accordingly
to be in competition. They are also termed as contemporary change issues/problems managers
are facing these days because of the speed of changes occurring in them.
The factors/forces are:
• Nature of the workforce/human resources.
• Innovations • Technology
• Competition in the market (Global competitions, mergers, growth of e-commerce)
• Economic shocks
• World politics
• Social trends
Zero sum allocation is an approach in which the reward “pie” is treated as fixed. And the
allocation is made in such a way that a gain of a person or group has to come at expense of
another person or group. Whenever the organization‟s culture emphasis on zero-sum or win/lose
approach to reward allocations, it motivates employees more towards politics in an organization.
For Example: An amount of Rs.15000 is to be distributed among 5 employees. If anyone gets
more than Rs.3000, it‟ll mean that he/se has taken share of someone else. It‟ll surely annoy other
employees getting share less than Rs.3000 and they will motivated to have political behavior.
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Devil's Advocacy is an approach in which an individual or group is appointed to critique a
proposed group of action and identify problems to consider before the decision is final.”
For Example: In group meetings, Mr. A is appointed as Devil‟s advocate to point out the short
falls in the decision they are about to take. And tell them about the possible changes which can
make it a near-to-perfect decision. .
Symptom can be defined as “any indication or sign of the existence of something”. We can say
that it is a subjective evidence of any phenomenon to be happened.
Stress can be recognized by the following three symptoms:
• Physiological symptoms
• Psychological Symptoms
• Behavioral Symptoms
Physiological symptoms include increased heart and breathing rates, increased blood pressure
and headaches.
How the stress can be recognized in organization
Stress can be recognized by the following three symptoms:
Physiological symptoms: They include increased heart and breathing rates, increased blood
pressure and headaches.
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Psychological Symptoms: They include job dissatisfaction, tension, anxiety, boredom, irritability
and procrastination.
Behavioral Symptoms: Stress can also be recognized by the behavioral symptoms like absence
from job, changes in productivity level, changes in eating habits, increase in smoking or taking
any other drugs, sleep disorders and speaking rapidly.
MGT502 Organizational Behavior Lecture no.42
Formalization
Formalization refers to the degree to which jobs within the organization are standardized and the
extent to which employee behavior is guided by rules and procedures. If a job is highly
formalized, then the person doing that job has a minimum amount of discretion over what is to
be done, when it's to be done, and vice versa. The degree of formalization can vary widely
between organizations and even within organizations. For instance, at a newspaper publisher,
news reporters often have a great deal of discretion in their job. They may pick their news topics,
find their own stories, research them the way they want and write them up usually with minimum
guidelines. On the other hand, the competitors and typesetters who lay out the newspaper pages
don‟t have that type of freedom. They have constraints- both time and space- that standardized
hoe they do their work.
Stress
Stress is considered good when it becomes a cause of improving performance/productivity and
most of the time stress is productive at initial stage because when stress is prolonged it creates
negative impact. For example sometimes meeting or engaging in a challenge can be stressful, but
this can lead to maximum performance.
Ethical culture can be developed in an organization by the management by adopting the
following steps:
• Establishing fully enforceable code of conduct within organization.
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• Initiating and conducting ongoing training programs for employees to let them know the
expectations of them and better understanding culture within.
• Ensuring regular communication between all.
• Establishing anonymous reporting hotline to report any misconduct.
• Ensuring the reinforcement of code of conduct and actions is taken in case of non-conformity.
• Rewarding the employees who are living up to the standard.
When one company takes over another and clearly establishes itself as the new owner, the
purchase is called an acquisition. From a legal point of view, the target company ceases to exist,
the buyer "swallows" the business and the buyer's stock continues to be traded.
In the pure sense of the term, a merger happens when two firms agree to go forward as a single
new company rather than remain separately owned and operated. This kind of action is more
precisely referred to as a "merger of equals". The firms are often of about the same size. Both
companies' stocks are surrendered and new company stock is issued in its place. For example, in
the 1999 merger of Glaxo Wellcome and SmithKline Beecham, both firms ceased to exist when
they merged, and a new company, GlaxoSmithKline, was created.
Downsizing is basically of two types i-e retrenchment and layoffs
Retrenchment means the reduction of expenditures in order to become financially stable.
Layoff is the temporary suspension or permanent termination of employment of an employee or
(more commonly) a group of employees for business reasons, such as the decision that certain
positions are no longer necessary or a business slow-down or interruption in work.
but most of the time downsizing refers to the permanent reduction of a company's workforce and
is generally associated with corporate reorganization, or creating a "leaner, meaner"
company.Downsizings such as also commonly called reorganizing, reengineering, restructuring,
or rightsizing. Regardless of the label applied, however, downsizing essentially refers to layoffs
that may or may not be accompanied by systematic restructuring programs, such as staff
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reductions, departmental consolidations, plant or office closings, or other forms of reducing
payroll expenses.
MGT502 Organizational Behavior Lecture no.43
Correcting Poor Performance
It is very important for the success of an organization to identify the poor performance and
correct and align it according to the goals and objectives of organization. It is the responsibility
of a manager to guide his subordinates regarding the criteria of required performance. An
employee should be properly informed about the expected performance and should be trained to
achieve that milestone.
Zero-Sum condition refers to a situation in which a gain is offset by an equal loss.
Or
A situation in which two entities cancel the effect of each other to give a zero.
Span of Control is a term used for the number of subordinates a manager is expected to
supervise.
Or
The number of subordinate employees directly accountable to a manager.
A wide span of control reduces expenses, but requires more management skill and may reduce
effective feedback.
Chain of command refers to the order in which power and authority in an organization is
exercised and delegated from top management to every employee at every level of the
organization.
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Stereotype refers to a general view of people about a specific group or individuals. In other
words, It is a popular belief about specific social groups or types of individuals held by others in
general.
EPM Supports Best Practices
EPM is an abbreviation of Employee Performance Management. It includes a variety of HR
processes e.g., goal management, performance appraisals, multi-rater/360 feedback,
compensation management, workforce & succession planning, development planning and
training. When these processes are connected correctly in an enterprise they help employees to
understand their roles, overall strategic business objectives, expectations in their day-to-day
activities based on the business objectives and performance success as viewed by the
management, peers, customers, etc.
It is one of the advantages of EPM that it supports best practices, due to which we can manage
performance of an employee more realistically and effectively
MGT502 Organizational Behavior Lecture no.44
Organizational Design and Structure
Organizational Design and Structure are processes for improving the probability that an
organization will be successful.
Organizational Structure emphasizes on systems and processes. It is the formal system of task
and reporting relationships that controls,coordinates and motivates the employees to cooperate
each other ,so that the objectives of organization can be achieved.
While Organizational design emphasizes on management and leadership styles. It is the
selection and management of various dimensions of structure and culture to achieve goals. for
example authoritative style of management or bureaucratic style of management.
Zero-Sum Condition refers to a situation in which a gain is balanced by an equal loss.
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Inertia refers to condition in organization when change is introduced and people are reluctant to
acept the change. Then whole of the organization comes to stand still and static mode. It is said
to be a tendency to remain in a fixed condition without change and disinclination to move or act
upon the change.
Antecedent condition is the the pre-condition or requirements for some thing. We can say : a
preceding event, condition, or cause
Coaching is "a process which enables learning and development to occur and help in improving
performance."
Counseling is a support process in which a counselor holds face to face talks with another person
to help him/her solve a personal problem. It also help improve that person's attitude, behavior, or
character. We can say that it is an assistance especially provided by a professional for the
resolution of personal difficulties/problems.
Burnout refers to a psychological condition in which one experience long-term exhaustion and
diminished interest. It is a state of emotional, mental, and physical exhaustion caused by
excessive and prolonged stress. It occurs when you feel overwhelmed and unable to meet
constant demands.
MGT502 Organizational Behavior Lecture no.45
"Learned helplessness
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The American psychologist Martin Seligman's was the first person to conduct foundational
experiments and the theory of learned helplessness in 1967 at University of Pennsylvania.
Learned Helplessness is a condition or state of mind in which a person feels lack of control on
the situation thus behaves in a helpless manner. In such situation, this inaction can result in
overlooking any opportunity arising to avoid unpleasant circumstances and any opportunity for
change or relief. This theory is connected with Clinical Depression and related mental illnesses,
in which one perceives lack of control over the outcome of any situation.
Demographics or demographic data refers to characteristics of human population. Demographics
include human characteristics like age, gender, race, disabilities and income etc. These types of
data are used in various researches of marketing, sociology and public policy making.
Geographic is from Geography which refers to the study of earth and distribution of life on earth.
It also includes human life and effects of human activity. Or
Geography is concerned with topography of a specific region.
Or
It is the physical characteristics, especially the surface features of any area.
Demographic influence refers to influence due to the demographic factors like age, race, gender
etc on any other thing.
There are three types of trust, namely: Deterrence-based trust, Knowledge-based trust,
identification-based trust.
Deterrence-Based Trust is based on fear of reprisal if the trsut is violated.
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Knowledge -Based Trust is based on behavioral predictability that comes from a history of
interaction
Identification-Based Trust is based on a mutual understanding of each other's intentions and
appeciation of each other's wants and desires.
Radical Change refers to the major changes brought in the overall operations of an organization.
Incremental Change refers to changes brought with the passage of time. In this, small changes
are made from time to time.
Reactive Change refers to changes brought as a result of changes in the external or internal
environment.
Anticipatory Change refers to anticipate change as per changes by the compititors to stay ahead
in competition.
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