MB0038 – Management Process and Organization Behavior

Set- 1

Q.1 Write a note on the functions of management.

Ans:

Management Functions Follett (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 extend. The four functions are as follows:

1. Planning 2. Organizing 3. Leading 4. Controlling

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 organization's mission, overall goals, general strategies, and allocating resources.

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's 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 organization 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 displays the organizational structure and shows job titles, lines of authority, and relationships between departments.

Leading An organization has the greatest chance of being successful when all of the employees work toward 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 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 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.

Leading involves the following functions:

1. Teambuilding Rigid department boundaries and fixed teams are giving way to ad hoc squads whose membership changes with every project. Flexible networks of team-based structures are occurring within and between companies, as well as across national borders. Competitive arenas require quick decisions by knowledgeable employees who work close to the source of problems. Teams enable knowledge-based and innovative decision making. This collaboration is a revolution in the workplace. 2. Consensus Building Top performance demands the joint effort of many people, working together toward a common goal. When an individual works together with others, effectiveness grows, creating greater productivity for all involved. Together, employees can do more than the collective efforts of each individual working alone. 3. Selecting Selecting competent, high-performing employees capable of sustaining their performance over the long run is a competitive advantage. The selection process consists of forecasting employment needs, recruiting candidates, interviewing applicants, and hiring employees.

Controlling It involves monitoring the employees‟ behavior and organizational processes and take 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.

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).

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 results of operations. They guide future planning, inputs, and process designs. Examples of feedback controls include timely (weekly, monthly, quarterly, annual) reports so that almost instantaneous adjustments can be made.

Q.2 Discuss any two learning theories in detail.

Ans:

Theories of Learning

1. Classical Conditioning Classical 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 does not 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 Unconditioned 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 neutral stimulus (bell) became a conditioned stimulus (CS) as a result of consistent pairing with the unconditioned stimulus (US – meat). Pavlov referred to this learned relationship as a Conditioned Response.

2. Operant Conditioning The operant conditioning theory is proposed by B.F. Skinner (1953, 1954). This is based on the idea that learning is a function of change in overt behavior. Changes in behavior are the result of an individual's response to stimuli. When a particular Stimulus-Response (S-R) pattern is reinforced (rewarded), the individual is conditioned to respond. Reinforcement is the key element in Skinner's S-R theory. A reinforce is anything that strengthens the desired response.

Principles of operant conditioning are as follows: 1. Behavior is learned. 2. Behavior that is positively reinforced will reoccur.3. Information should be presented in small amounts so that responses can be reinforced ("shaping") 4. Reinforcements will generalize across similar stimuli ("stimulus generalization") producing secondary conditioning. 5. Rewards are most effective if they immediately follow the desired response.

Q.3 Explain the classification of personality types given by Sheldon.

Ans:

William Sheldon classified personality according to body type. He called this a person’s

somatotype. He identified three main somatotypes that are associated with certainpersonality characteristics. They are as follows:

1. Endomorphy – It is focused on the digestive system, particularly the stomach(endoderm); has the tendency toward plumpness, corresponds to Viscerotoniatemperament tolerant, love of comfort and luxury, extravert.

2. Mesophorphy – It is focused on musculature and the circulatory system(mesoderm), has the tendency towards muscularity, and corresponds to theSomatotonia temperament courageous, energetic, active, dynamic, assertive,aggressive, risk taker.

3. Ectomorphy: It is focused on the nervous system and the brain (ectoderm) – thetendency towards slightness, corresponds to Cerebrotonia temperament artistic,sensitive, apprehensive, introvert.

On this basis, Sheldon created “Atlas of Men” , in which all possible body types aregraded in a scale from 1 (low) to 7 (high), based on the degree to which they matchedthese types; with 4 as average). Each type is represented by a series of photos, and isgiven a comical or descriptive name, like "saber tooth tiger" for extreme mesomorph,"Baluchitherium" for mesomorph and endomorph, "Male Mosquito" for the extremeectomorph, and so on. On this scale, the extreme or pure mesomorph has a score of1-7-1, the pure endomorph 7-1-1, and the pure ectomorph 1-1-7. Most people of course

Body Type Associated personality traits

Associated personality traits

a. Endomorphic Body Type:soft bodyunderdeveloped musclesround shapedover-developed digestive system

love of foodtolerantevenness of emotionslove of comfortsociablegood humouredrelaxedneed for affection

b. Mesomorphic Body Type:hard, muscular bodyoverly mature appearancerectangular shapedthick skinupright posture

adventurousdesire for power and dominancecourageousindifference to what others think or wantassertive, boldzest for physical activitycompetitivelove of risk and chance

c. Ectomorphic Body Type:thinflat chestdelicate buildyoung appearancetalllightly muscledstoop-shoulderedlarge brain

self-consciouspreference for privacyintrovertedinhibitedsocially anxiousartisticmentally intenseemotionally restrained

But body types have been criticized for very weak empirical methodology and are notgenerally used in psychology. The use of somatotyping is used more often in alternativetherapies and Eastern psychology and spirituality.

Q.4 What are the factors influencing perception?

Ans:

Factors Influencing Perception 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 environment that are critical to our survival. Perception not only creates our experience of the world around us; it allows us to act within our environment. A number of factors operate to shape and sometimes distort perception. These factors can reside: i) In the perceiver.

ii) In the object or target being perceived or

iii) 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 perceiver's attitudes affect perception. For example, suppose Mr. X is interviewing 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 think differently 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 in a positive mood, we form more positive impressions of others. When in a negative mood, we tend to evaluate others unfavourably.

c) Motives: Unsatisfied needs or motives stimulate individuals and may exert a strong influence on their perceptions. For example, in an organizational context, a boss who is insecure perceives a subordinate's efforts 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 "get my 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 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 individual's pattern of thinking, also affects perception. 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 what you expect to see. The research findings of information that is inconsistent with our mood state. When in a positive mood, we form more positive impressions of others. When in a negative mood, we tend to evaluate others unfavourably.

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

Ans:

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 them opportunities to use 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) Personality-Job Fit: People with personality types congruent with their chosen vocations should find they have the right talents and abilities to meet the demands 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 they perceive as being just, unambiguous, and in line with their expectations. When pay is seen as fair based on job demands, individual 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 are comfortable 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 and understanding supervisor's leads to increased job satisfaction. Most employees want their immediate supervisor to be understanding and 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 them opportunities to use 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) Personality-Job Fit: People with personality types congruent with their chosen vocations should find they have the right talents and abilities to meet the demands 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 they perceive as being just, unambiguous, and in line with their expectations. When pay is seen as fair based on job demands, individual 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 are comfortable 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 and understanding supervisor's leads to

increased job satisfaction. Most employees want their immediate supervisor to be understanding and friendly, those 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 authorities of wrongdoings of their companies or co-workers. Whistle blowing is important because committed organizational members sometimes engage in unethical behaviour 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 behaviour and the appropriate ways to respond are important organizational actions.

Q.6 Given below is the HR policy glimpse of the “VARK-LEARNING” a 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 maslow’s need hierarchy 4. It recognizes good performances and give 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 Maslow’s Need Hierarchy ?

Ans:

Maslow’s Hierarchy of Needs Theory

According to this theory, proposed by Maslow (1943), human beings have wants and desires which influence their behaviour; 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.

Maslow’s 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 harm

3. Social: Includes affection, belongingness, acceptance, and friendship

4. 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 one’s potential, and self-fulfillment

6. Maslow separated the five needs into higher and lower orders. Physiological and safety needs are described as lower-order. Social, esteem, and self-actualization are classified as higher-order needs. Higher-order needs are satisfied internally, whereas, Lower-order needs are predominantly satisfied, externally.

Theory X and Theory Y

Douglas McGregor argued that a manager’s 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, 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 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.

MB0038 – Management Process and Organization Behavior

Set- 2

Q.1 Write a note on classical era for evolution of Organization behaviour.

Ans:

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 Frederick Taylor, Henri Fayol, Max Weber, Mary parker Follet and Chester Barnard.

Frederick Taylor’s 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 the workers 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 efficiently.

5. 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 job, the effect was to remove human variability. Hence he lay 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 of tasks so that expertise is developed and productivity increased.

2. Authority and responsibility: authority is the right to give orders and entails enforcing them with 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 good leadership, clear and fair arguments, and the judicious application of penalties.

4. Unity of command: for any action whatsoever, an employee should receive orders from one superior only; otherwise authority, discipline, order, and stability are threatened.

5. Unity of direction: a group of activities concerned with a single objective should be co-coordinated by a single plan under one head.

6. Subordination of individual interest to general interest: individual or group goals must not be allowed to override those of the business.

7. Remuneration of personnel: this may be achieved by various methods but it should be fair, encourage effort, and not lead to overpayment.

8. Centralization: the extent to which orders should be issued only from the top of the organization 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 the line 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 must be 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 imposed by the requirements of authority and discipline.

14. Esprit de corps: efforts must be made to promote harmony within the organization and prevent dissension and divisiveness. The management functions, that Fayol stated, consisted of planning, organizing, commanding, co-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 organization‟s activities into its basic components. He suggested that organizations could be sub-divided into six main areas of activity:

1. Technical 2. Commercial 3. Financial 4. Security 5. Accounting 6. Management.

In defining the core principles governing how organizations worked and the contribution of management to that process, Fayol laid down a blueprint 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 viewpoint. 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 bureaucratic structure are a follows:

1. Jurisdictional areas are clearly specified, activities are distributed as official duties (unlike traditional form where duties delegated by leader and changed at any time).

2. Organization follows hierarchical principle -- subordinates follow orders or superiors, but have right of appeal (in contrast to more diffuse structure in traditional authority).

3. Intention, abstract rules govern decisions and actions. Rules are stable, exhaustive, and can be learned. Decisions are recorded in permanent files (in traditional forms few explicit rules or written records).

4. Means of production or administration belong to office. Personal property separated from office property.

5. Officials are selected on basis of technical qualifications, appointed not elected, and compensated by salary.

6. Employment by the organization is a career. The official is a full-time employee and looks forward to a life-long 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.

Ans:

Classification of Groups 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 organization's structure. A formal group is set up by the organization to carry out work in support of the organization's goals. In formal groups, the behaviours 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 be command groups or task groups. i) Command Group: A command group consists of a manager and the employees who report to him or her. Thus, it is defined in terms of the organization's hierarchy. Membership in the group arises from each employee's position on the organizational chart.

ii) Task Group: A task group is made up of employees who work together to complete a particular task or project. A task group's boundaries are not limited to its immediate hierarchical superior. It can cross command relationships. An employee's membership in the group arises from the responsibilities delegated to the employee -that is, the employee's 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 as investigating, 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 sent to the authority that is responsible for implementing them. 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 of 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 organization's informal groups are the groups that evolve to meet social or 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 friendships. 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 one or 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 or task groups may affiliate to attain a specific objective with which each is concerned. This is an interest group.

iii) Reference Groups: Sometimes, people use a group as a basis for comparison in making decisions or forming opinions. When a group is used in this way, it is a 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 the person's 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 informal groups to which employees 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 group's well being and would enjoy the benefits arising from the group members' friendship.

v) Cliques: A relatively permanent informal groups that involves friendship. Most of the relationships 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 to 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.

Q.3 Explain the approaches of conflict management.

Ans:

Conflict Management Approaches There are two types of conflict management approaches:

Direct

Indirect

Direct conflict management approaches There are five approaches to direct conflict management. They are based on the relative emphasis on 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 real essence of a given conflict and often creates frustration and resentment.

Compromise – it occurs when each party gives up something of value to the other. 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 a recognition by all conflicting parties that something is wrong and needs attention. It stresses gathering and evaluating information in solving disputes and making choices. The figure below shows the five conflict management styles using these two dimensions.

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 buffer, between the two groups so that any output slowdown or excess is absorbed by the inventory and does not directly pressure the 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 of the individual in an organization. Discuss the different categories of environmental stressors.

Ans:

Environmental Stressors Environmental and internal conditions that lie beyond an individual's control are called environmental stressors. Such stressors can have a considerable impact on work performance and adjustment. We can organize environmental stressors into the following categories:

1. Task Demands: Task demands are factors related to a person's job. They include the design of the individual's job, working conditions, and the physical work layout. 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 person's 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 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 work outcomes, or to exercise direct action to affect the work outcomes.

2. Role Demands: The social-psychological demands of the work environment may be every 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 conflict results 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 a 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. 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. Employees expected 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 knowing how to do it, or not knowing the result of failure to do it.

3. Inter-personal Demands: are pressures created by other employees. Lack of social support from colleagues and poor interpersonal relationships can cause considerable stress, especially among employees with a high social need. Abrasive personalities, sexual harassment and the leadership style in the organization are interpersonal demands for people at work.

a. The Abrasive Person: May be an able and talented employee, but one who creates emotional waves that others at work must accommodate. b. Sexual Harassment: The vast majority of sexual harassment is directed at women in the workplace, creating a stressful working environment for the person being harassed, as well as for others. c. Leadership Styles: Whether authoritarian or participative, create stress for different personality 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 the work 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-work organizational commitments such as religious and public service organizations. These demands become more or less stressful, depending on their compatibility with the person's work and family life and their capacity to provide alternative satisfactions for the person.

Q.5 Given below are certain instances observed by the summer trainee – Ritu, while making an observational study at GlobalGreen consultants. An organization dealing with recycling of plastic products waste etc. She makes the following observation about two key people in the organization. 1. Mr. Patnayak – He 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:

Bases of Power

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. Formal power is derived from either one’s 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 administer 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:

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 whom power is being unleashed.

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. Although all managers have some access to rewards, 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 stems from the extent to which a manager can use subordinates’ internalized values or beliefs that the “boss” has a “right of command” to control their behavior. For example, the boss may have the formal authority to approve or deny such employee requests as job transfers, 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 formal hierarchy.

· 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 dependant 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 that individual’s position. Three bases of personal power are expertise, rational persuasion, and reference.

Expert power is the ability to control another person’s 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 be done than does the subordinate. 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 another’s behavior, since, through the individual’s efforts, the person accepts the desirability of an offered goal and a viable way of achieving it. Rational persuasion involves both explaining the desirability of expected outcomes and showing how specific actions will achieve these outcomes.

Charismatic Power is an extension of referent power stemming from an individual’s personality and interpersonal style. Others follow because they can articulate attractive visions, take personal risks, demonstrate follower sensitivity, etc.

Dependency: The Key to Power

The General Dependency Equation is as follows:

· The greater B’s dependency on A, the greater the power A has over B. When an individual possess anything that others require but that which alone the individual controls, he / she can make others dependent and, therefore, gain power over them.

· Dependency, then, is inversely proportional to the alternative sources of supply.

This is one of the reasons why most organizations develop multiple suppliers rather using just one. It also explains why individuals in general aspire to financial independence.

Three factors are responsible for dependency. They are as follows:

· Importance

To create dependency, the thing(s) you control must be perceived as being important. Organizations actively seek to avoid uncertainty and hence, those individuals or groups who can absorb an organization’s uncertainty will be perceived as controlling an important resource.

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 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.

Ans:

Organizational Change: Now let us discuss the various characteristics of organizational change along with the forces responsible for this change.

Characteristics:

· It is deliberate, systematic and well thought of.· Velocity of change depends on the degree or level of significance.· Status quo is challenged.· Reaction can be both positive and negative.· Focuses on long-term change.

The forces for change:

· Organization-environment relationship (merger, strategic alliances, etc.) where organizations attempt to redefine their relationships with changing social and political environment.· Organizational life cycle (changes in culture and structure of organization’s evolution from birth through growth towards maturity). · Political nature of organization (changes in internal control structures, etc.) to deal with shifting political current.

Theories of Change

This section will orient you towards various theories of change. Let’s start with Force Field Analysis theory.

Force Field Analysis theory

Lewin (1951) proposed a three step sequential model of change process:

Unfreezing

At this stage, the forces, which maintain the status quo in the organizational behavior, are reduced by refuting the present attitude and behavior to create a perceived need for something new. It is facilitated by environmental pressure such as increased competition, declining productivity and performance, felt need to improve the style of work, etc.

Schien has suggested some measures which are quite helpful in undertaking unfreezing process. These are as follows:

1. The physical removal of the individuals being changed from their accustomed routines, sources of information, and social relationships.2. The undermining and destruction of social support.3. Demeaning and humiliating experiences to help individuals to see their old attitudes or behaviour as unworthy and think to be motivated to change.4. The consistent linking of reward with willingness to change and of punishment with lack of willingness to change.

Changing/Moving: This stage involves a shift in behavior of organizations by modifying system, process, technology and people. This phase can be explained in terms of compliance, identification and internalization (Rao and Hari Krishna 2002). Compliance or force occurs when individuals are forced to change whether by reward or by punishment. Internalization occurs when individuals are forced to encounter a situation that calls for new behavior. Identification occurs when individuals recognize one among various models provided in the environment that is most suitable to their personality.

Refreezing: At this stage, actions are taken to sustain the drive for change and to facilitate the institutionalization process of the change even in a day-to-day routine of the organizations. Here, the desired outcomes are positively reinforced and extra support is provided to overcome the difficulties. There is a tendency that individuals revert back gradually to their old behaviours, which they were displaying before the change, in the absence of suitable reinforcement. Therefore, reinforcement is necessary for the internalization of new behaviour.

Action Research model: Action research model is another model of planned change. According to this model, planned change is a cyclical process in which initial research about organizations provides the data to guide the subsequent action to bring the required changes. It emphasizes on the significance of data collection and diagnosis prior to action planning and implementation and careful evaluation of the actions. This model describes change in eight steps:

1) Problem identification: It starts with the identification of one or a combination of problems in the organization and consequent requirement of bringing change in organizational practices.

2) Consultation with the expert: It is the phase where the organization consults with the experts in the same field to generate the ideas for improvement of the situation. At this stage an open and collaborative atmosphere is intended to be set up.

3) Data gathering and preliminary diagnosis: This stage is usually completed by the expert often with the organizational members’ help. The four basic modes of data gathering are interview, process observation, questionnaires and organizational performance data.

4) Feedback to key client or group: Because action research is a collaborative activity, the diagnostic data is fed back to the client usually with a group or work team meeting. The consultant provides the client with all the necessary data.

5) Joint diagnosis of the problem: At this point, the clients and the expert jointly decide whether they want to work on the identified problems.

6) Joint action planning: The consultant and the client then jointly decide on the further action. This is the beginning of the movement process (refer to Lewin’s model). At this stage, specific actions are taken depending on the culture, technology and the environment of the organization.

7) Action: This stage involves actual change from one organizational state to another. It may include new methods and procedures, reorganizing structures and work designs, and new behaviors.

Data gathering after action: Since action research is a cyclical process, data must also be gathered after the action has taken place.

. Strategies for Change Management

According to Bennis, Benne and Chin (1969), four basic strategies can be adopted to manage change:

Empirical-RationalPeople are rational and will follow their self-interest once a change is revealed to them. Change is based on the communication of information and the proffering of incentives.