Mgt Process and Organisation Behaviour

7/29/2019 Mgt Process and Organisation Behaviour

1/31

ASSIGNMENT-01/02

Name : AFTAB.E.ALAM

Registration No. : 541110012

Learning Center : Kuwait

Learning Center Code : 2527

Course : MBA

Subject :

Semester : First

Module No. :

Date of Submission :

Marks awarded :

Directorate of Distance Education

Sikkim Manipal University

II Floor, Syndicate House

Manipal- 576 104

_______________________ ___________________________ ___________________________

Signature of Coordinator Signature of Center Signature of Evaluator


2/31

Q.1 Write a note on the functions of management. [10]

Follet (1933) defined management as the art of getting things done through people.

One can also think of management functionally, as the action of measuring a quantity on a

regular basis and of adjusting some initial plan.

Management functions are as follows (Fayol, 1949):

1. Planning:

2. Organizing:

3. Commanding

4. Coordinating

5. Controlling

However, in recent time, management functions have been regrouped into four categories,

since the managerial tasks have become highly challenging a fluid in nature making distinctions

redundant to a certain extends. The four functions are as follows:

1. Planning

2. Organizing

3. Leading

4. Controlling

1. Planning: it involves the process of defining goals, establishing strategies for achieving these

goals, and developing plans to integrate and coordinate activities. Every organization needs to

plan for change in order to reach its set goal. Effective Planning enables an organization adapt

to change by identifying opportunities and avoiding problems.it provides the direction for the

other functions of management and for effective teamwork. Planning also enhances the

decision making process. All Levels of management engage in planning in their own way for

achieving their preset goals.

Planning in order to be useful must be linked to the strategic intent of an organization. Therefore,

Planning is often referred to as strategic in nature and also termed as strategic planning.

Strategic Planning: Top level managers engage chiefly in strategic planning or long range

planning, strategic planning is the process of developing and analyzing the organizations

mission, overall goals, generally strategies, and allocating resources.

The tasks of the strategic planning process include the following steps:

1. Define the Mission


3/31

2. Conduct a situational or SWOT Analysis

3. Set Goals and Objectives

2. Organizing:

It involves designing, structuring, and coordinating the work components to achieve

organizational goal. It is the process of determining what tasks are to be done, who is to do, how

the tasks are to be grouped, who reports to whom, and where decisions are to be made. A Key

issue in accomplishing the goals identified in the planning process is structuring the work of the

organization. Organizations are groups of people, with ideas and resources, working toward

common goals. The Purpose of the organizing function is to make the best use of the

organization resources to achieve organizational goals. Organizational structure is the formal

decision-making framework by which job tasks are divided, grouped and coordinated.

Formalization is an important aspect of structure. It is the extent to which the units of the

organizations are explicitly defined and its policies, procedures, and goals are clearly stated.it is

the official organizational structure conceived and built by top management. The formal

organization can be seen and represented in chart form. An Organization chart display the

organizational structure and shows job titles, line of authority, and relationships between

departments.

The steps in the organizing process include:

1. Review plans

2. List all tasks to be accomplished

3. Divide tasks into groups one person can accomplish-a job

4. Group related jobs together in a logical and efficient manner

5. Assign work to individuals

6. Delegate authority to establish relationships between jobs and groups of jobs.

3. Leading:

An Organization has the greatest chance of being successful when all of the employees worktoward achieving its goals. Since leadership involves the exercise of influence by one person

over others, the quality of leadership exhibited by supervisors is a critical determinant of

organizational l success.

Supervisors can learn about leadership through research. Leadership studies can be classified as

trait, behavioral, contingency, and transformational. Earliest theories assumed that the primary


4/31

source of leadership effectiveness lay in the personal traits of the leaders themselves. Yet, traits

alone cannot explain leadership effectiveness. Thus, later research focused on what the leader

actually did when dealing with employees. These behavioral theories of leadership sought to

explain the relationship between what the leaders did and how the employees reacted, both

emotionally and behaviorally. Yet, behavior cant always account for leadership in different

situations. Thus, Contingency theories of leadership studied leadership style in different

environments. Transactional leaders, such as those identified in contingency theories, clarify role

and task requirements for employees. Yet, Contingency cant account for the inspiration and

innovation that leaders need to compete in todays global market place. Newer

transformational leadership studies have shown that leaders, who are charismatic and visionary,

can inspire followers to transcend their own self-interest for the good of the organization.

Leading Involves the following functions:

1. Team Building

2. Consensus Building

3. Selecting

4. Training

4. Controlling:

It involves monitoring employees behavior and organizational process and takes necessary

actions to improve them, if needed. Control is the process through which standards for

performance of people and processes are set, communicated, and applied. Effective control

systems use mechanisms to monitor activities and take corrective action, if necessary.

There are four steps in the control process. They are as follows:

Step1. Establish Performance standards.

Step2. Measures Actual Performance

Step3. Compare measured performance against established standards.

Step4. Take Corrective Action

Types of Control

Controls are most effective when they are applied at key places. Supervisors can implement

controls before the process begins (feed forward), during the process (Concurrent), or after it

ceases (Feedback).


5/31

Feed forward Controls focus on operations before they begin. Their goal is to prevent

anticipated problems. An Example of feed forward control is scheduled maintenance on

automobiles and machinery.

Concurrent controls apply to processes as they are happening. Concurrent controls enacted

while work is being performed include any type of steering or guiding mechanism such as direct

supervision, automated systems (such as computers programmed to inform the user when they

have issued the wrong command), and organizational quality programs.

Feedback controls Focus on the result of operations. They guide future planning, inputs, and

process designs. Examples of feedback controls include timely (weekly, monthly, quarterly, and

annually) reports so that almost instantaneous adjustments can be made.

Q.2 Discuss any two learning theories in detail [10]

Theories of learning

1. Classical conditioningClassical conditioning is a form of associative learning process proposed by Pavlov

(1927).This process involves presentations of a neutral stimulus along with a stimulus of some

significance. The neutral stimulus doesnt lead to an overt behavioral response from the

organism. This is called as Conditioned Stimulus (CS).Significant stimulus evokes an innate,

often reflexive, response. This is called Unconditioned Stimulus (US) and UN conditioned

Response (UR), respectively. If the CS and the US are repeatedly paired, eventually the two

stimuli become associated and the organism begins to produce a behavioral response to it.

It is the Conditioned Response (CR).

Classical conditioning was first experimented by Russian Physiologist, Ivan Pavlov, to teach

dogs to salivate in response to the ringing of a bell. During his research on the physiology of

digestion in dogs, Pavlov used a bell before giving food to his dog. Rather than simply

salivating in the presence of meat (a response to food-unconditioned response), after a few

repetitions, the dog started to salivate in response to the bell. Thus, a consistent pairing with

the unconditioned stimulus (US-meat).Pavlov referred to this learned relationship as a

Conditioned Response.

2. Social learningThe social learning theory was proposed by Bandura. It recognizes the importance of

observing and modeling the behaviors, attitudes, and emotional reactions of others.

According to Bandura (1977), most human behavior is learned observationally through


6/31

modeling: from observing others one forms an idea of how new behaviors are performed,

and on later occasions this coded information serves as a guide for action. Social learning

theory explains human behavior in terms of continuous reciprocal interaction between

cognitive, behavioral, and environmental influences.

Learning would be exceedingly laborious, not to mention hazardous, if people had to rely

solely on the effects of their own actions to inform them what to do. Fortunately, most

human behavior is learned observationally through modeling: from observing others one

forms an idea of how new behaviors are performed, and on later occasions this coded

information serves as a guide for action. - Albert Bandura, social learning Theory, 1977

Social learning has four processes:

1. Attention process- People learn from a model only when they recognize and payattention to its critical features. In order to learn, it is required to pay attention. Anything

that detracts the attention is going to have a negative effect on observational learning.

If the is model interesting or there is a novel aspect to the situation, it is more likely to

dedicate the full attention to learning.

2. Retention process- A Models influence will depend on how well the individualremembers the models action after the it is no longer readily available. The ability to

store information is also an important part of the learning process. Retention can be

affected by a number of factors, but the ability to pull up information later ad act on it is

vital to observational learning.3. Motor reproduction process- After a person has seen a new behavior by observing the

model, the watching must be converted to doing. The ability to store information is also

an important part of the learning process. Retention can be affected by a number of

factors, but the ability to pull up information later and action it is vital to observational

learning.

4. Reinforcement process- Individuals will be motivated to exhibit the modeled behavior ifpositive incentives or rewards are provided. Finally, in order for observational learning to

be successful, you have to be motivated to imitate the behavior that has been

modeled. Reinforcement and punishment play an important role in motivation. While

experiencing these motivators can be highly effective, so can observing other

experience some type of reinforcement or punishment? For example, if you see another

student rewarded with extra credit for being to class on time, you might start to show up

a few minutes early each day.


7/31

Principles of social learning are as follows:

1. The highest level of observational learning is achieved by first organizing andrehearsing the modeled behavior symbolically and then enacting it overtly. Coding

modeled behavior into word, labels or images results in better retention than simply

observing.

2. Individuals are more likely to adopt a modeled behavior, if it results in outcomes theyvalue.

3. Individuals are more likely to adopt a modeled behavior, if the model is similar to theobserver and has admired status and the behavior has functional value.

Q.3 Explain the classification of personality types given by Sheldon. [10]

William Sheldon (1940, 1942, cited in Phares, 1991) classified personality according

to body type. He called this a persons somatotype.

Sheldons identified three main somatotypes:

Sheldons classification of personality types.

Somatotypes

In the 1940s, Sheldon proposed a theory about how there are certain body types

(somatotypes) that are associated with certain personality characteristics. William Sheldon

(1898-1977) was an American psychologist who devoted his life to observing the variety of

human bodies and temperaments. He taught and did research at a number of U.S. Universities

and is best known for his series of books on the human constitution. He was a keen observer of

animals and birds as a child, and he turned this talent to good effect by becoming an avid

people-watcher, and out of his observations he gradually elaborated his typology. He claimed

Sheldons

Somatotype

Character Shape

Endomorph

(viscerotonic)

Relaxed,sociable,tolerant,comfort-

loving,peaceful

Plumb,buxom,developed

visceral structure

Mesomorph(somatotonic)

Active,assertive,vigorous,combative Muscular

Ectomorph

(cerebrotonic)

Quiet,fragile,restrained,non-

assertive,sensitive

Lean,delicate,poor

muscles


8/31

that there are three such somatotypes: endomorphy, mesomorphy, and ectomorphy.

Endomorphy- Focused on the digestive system particularly the stomach (endoderm): has the

tendency toward plumpness, corresponds to Viscerotonia temperament tolerant, love of

comfort and luxury, extravert.

Mesophorphy- Focused on musculature and the circulatory system (mesoderm), has the

tendency towards muscularity, corresponds to the Somatotonia temperament courageous,

energetic, active, dynamic, assertive, aggressive, risk taker.

Ectomorphy focused on the nervous system and the brain (ectoderm)-the tendency towards

slightness, corresponds to Cerebrotonia temperament artistic, sensitive, apprehensive, introvert.

On this basis, Sheldon created his very interesting Atlas of Men (Macmillan Pub Co.1970) in which

all possible body types are graded in a scale from 1(low) to 7(high),based on the degree to

which they matched these types ;with 4 as average).Each Type is represented by a series of

photos, and is given a comical or descriptive name, like saber tooth tiger for extreme

mesomorph,Baluchitherium (the largest prehistoric land mammal) for mesomorph and

endomorph. Male Mosquito for the extreme ectomorph, and so on. On this scale, the

extreme or pure mesomorph has a score of 1-7-1, the pure endomorph 7-1-1 and the pure

ectomorph 1-1-7. Most of people of course are a combination of types.

a. Endomorphic Body Type: Soft body Underdeveloped muscles Round shaped Over-developed digestive system

Associated personality traits

Love of food Tolerant Evenness of emotions Love of comfort Sociable Good humored Relaxed Need for affection

b. Mesomorphic Body type Hard, muscular body Overly mature appearance Rectangular shaped Thick skin Upright posture


9/31

Associated personality traits

Adventurous Desire for power and dominance Courageous Indifference to what others think or want Assertive, bold Zest for physical activity Competitive Love of risk and chance

c. Ectomorphic Body type: Thin Flat chest Delicate build Young appearance Tall Lightly muscled Stoop-shouldered Large brain

Associated Personality traits:

Self- conscious Preference for privacy Introverted Socially anxious Artistic Mentally intense Emotionally restrained

Sheldon measured the proportions of hundreds of juvenile delinquent boys and concluded that

they were generally mesomorphs (Ornstein, 1993).

Body types have been criticized for very weak empirical methodology and are not generally

used in psychology. The use of somatotyping (using different taxonomies) is used more often n

alternative therapies and Easter psychology and spirituality.

Traits are underlying tendencies to behave in a consistent and distinctive style and they describe

the frequency or intensity of a persons feelings, thoughts, or behaviors. Profession of a trait is,

therefore, a matter of degree.

Q.4 What are the factors influencing perception? [10

Perception is our sensory experience of the world around us and involves both the recognition of

environmental stimuli and actions in response to these stimuli. Through the perceptual process,

we gain information about properties and elements of the environments that are critical to our


10/31

survival. Perception not only creates our experience of the world around us; it allows us to act

with in our environment.

A number of factors operate to shape and sometimes distort perception. These factors can

reside:

i) In the perceiverii) In the object or target being perceived oriii) In the context of the situation in which the perception is made.1. Characteristics of the perceiver: Several characteristics of the perceiver can affect

perception. When an individual looks at a target and attempts to interpret what he or

she stands for, that interpretation is heavily influenced by personal characteristics of the

individual perceiver. The Major characteristics of the perceiver influencing perception

are:

a) Attitudes: The perceivers attitudes affect perception. For example, suppose Mr. X isinterviewing candidates for a very important position in his organization-a position that

requires negotiating contracts with suppliers, most of whom are male. Mr. X may feel that

women are not capable of holding their own in tough negotiations. This attitude will

doubtless affect his perceptions of the female candidates he interviews.

b) Moods: Moods can have a strong influence on the way we perceive someone. We thinkdifferently when we are happy than we do when we are depressed. In addition, we

remember information that is consistent with our mood state better than information that

is inconsistent with our mood state. When n a positive mood, we form more positive

impressions of others. When in a negative mood, we tend to evaluate others

unfavorably.

c) Motives: unsatisfied needs or motives stimulate individuals and may exert a stronginfluence on their perceptions. For example, in an organizational context, a boss who is

insecure perceives a subordinates effort to do an outstanding job as a threat to his or

her own position. Personal insecurity can be translated into the perception that others

are out to getmy job, regardless of the intention of the subordinates.

d) Self-Concept: Another factor that can affect social perception is the perceivers self-concept. An individual with a positive self-concept tends to notice positive attributes in

another person. In contrast, a negative self-concept can lead a perceiver to pick out

negative traits in another person. Greater understanding of self allows us to have more

accurate perceptions of others.

e) Interest: The focus of our attention appears to be influenced by our interests. Because our


11/31

individual interests differ considerably, what one person notices in a situation can differ

from what others perceive. For example, the supervisor who has just been reprimanded

by his boss for coming late is more likely to notice his colleagues coming late tomorrow

than he did last week. If you are preoccupied with a personal problem, you may find it

hard to be attentive in class.

f) Cognitive structure: Cognitive structure, an individuals pattern of thinking, also effectsperception. Some people have a tendency to perceive physical traits, such as height,

weight, and appearance, more readily. Others tend to focus more on central traits, or

personality dispositions. Cognitive complexity allows a person to perceive multiple

characteristics of another person rather than attending to just a few traits.

g) Expectations: Finally, expectations can distort your perceptions in that you will see whatyou expect to see. The research findings of the study conducted by Sheldon S Zalkind

and Timothy W Costello on some specific characteristics of the perceiver reveal.

Knowing oneself makes it easier to see others accurately Ones own characteristics affect the characteristics one is likely to see in others. People who accept themselves are more likely to be able to see favorable

aspects of other people.

Accuracy in perceiving others is not a single skill.These four characteristics generally influence how a person perceives others in the

environmental situation.

Characteristics of the Target

Characteristics in the target that is being observed can affect what is perceived. Physical

appearance plays a big role in our perception of others. Extremely attractive or unattractive

individuals are more likely to be noticed in a group than ordinary looking individuals. Motion,

sound, size and other attributes of a target shape the way we see it. The Perceiver will notice the

targets physical features like height, weight, estimated age, race, and gender. Perceivers tend

to notice physical appearance characteristics that contrast with the norm, that are intense, or

that are new or unusual. Physical attractiveness often colors our entire impression of another

person. Interviewers rate attractive candidates more favorably and attractive candidates are

awarded higher starting salaries.

Verbal communication from target also affects our perception of them. We listen to the topics

they speak about, their voice tone, ad their accent and make judgments based on this input.

Non-verbal communication conveys a great deal of information about the target. The

perceiver deciphers eye contact, facial expressions, body movements, and posture all in an

attempt to form an impression of the target. As a result of physical or time proximity, we often


12/31

put together objects or events that are unrelated.

For example, employees in a particular department are seen as a group. If two employees of a

department suddenly resign, we tend to assume their departures were related when in fact,

they might be totally unrelated, people, objects or events that are similar to each other also

tend to be grouped together. The greater the similarity, the greater the probability we will tend

to perceive them as a group.

Characteristics of the situation

The situation, in which the interaction between the perceiver and the target takes place, has

an influence on the perceivers impression of the target. E.g. meeting a manager in his or her

office affects your impression you would have formed, had you met the manager in a

restaurant. The strength of the situational had you met the manager in a restaurant. The strength

of the situational cues also affects social perception. Some situations provide strong cues as to

appropriate behavior. In these situations, we assume that individuals behavior can be

accounted for by the situation, and that it may not reflect the individuals disposition. This is the

discounting principle in social perception. For example, you may encounter an automobile

salesperson that has a warm and personable manner, asks you about your work and hobbies,

and seems genuinely interested in your taste in cars. Can you assume that this behavior reflects

the salespersons personality? You probably cannot, because of the influence of the situation.

This person is trying to sell you a car, and in this particular situation, he probably treats all

customers in this manner.

Factors in the perceiver Attitudes Motives Interests Experience Expectation

Factors in the situation

Time Work Setting Social Setting

PERCEPTION


13/31

Factors in the target

Novelty Motion Sound Size Background Proximity

Q.5 Mr. Solanki is the VP- HR of a leading financial services company. He is having a meeting

with Ms. Ramani leading HR consultant. Mr. Solanki is concerned about creating an environment

that helps in increasing the job satisfaction amongst employees. Assume that you are Ms.

Ramani, the HR consultant. What suggestions you will give to Mr. Solanki, for creating an

environment that increases job satisfaction [10]

Job Satisfaction:

Job satisfaction is the sense of fulfillment and pride felt by people who enjoy their work and do it

well. For an organization, satisfied work force ensures commitment to high quality performance

and increased productivity job satisfaction helps organizations to reduce complaints and

grievances, absenteeism, turnover, and termination. Job satisfaction is also linked to a healthier

work force and has been found to be a good indicator of longevity. And although only little

correlation has been found between job satisfaction and productivity, it has also been found

that satisfying or delighting employees is a prerequisite to satisfying or delighting customers, thus

protecting the bottom line (Brown, 1996)

The most important factors conductive to job satisfaction are :

I) Mentally challenging work: employees tend to prefer jobs that give themopportunities to user their skills and abilities and offer a variety of tasks, freedom, and

feedback on how well they are doing. Under conditions of moderate challenge,

most employees will experience pleasure and satisfaction.

II) Personally-job fit: People with personality types congruent with their chosenvocations should find they have the right talents and abilities to meet the demand of

their jobs; and because of this success, they have a greater probability of achieving

high satisfaction from their work. It is important, therefore to fit personality factors with

job profiles.

III) Equitable Rewards: Employees want pay systems and promotion policies that theyperceive as being just, unambiguous, and in line with their expectations. When pay is


14/31

seen as fair based on job demands, individuals skill level, and industry pay standards,

satisfaction is likely to result. Similarly, employees seek fair promotion policies and

practices. Promotions provide opportunities for personal growth, more responsibilities

and increased social status. Individuals who perceive that promotion decisions are

made in a fair and just manner are likely to experience job satisfaction.

IV) Supportive working Conditions: Employees prefer physical conditions that arecomfortable and facilitate doing a good job. Temperature, light, noise and other

environmental factors should not be extreme and provide personal comfort. Further,

employees prefer working relatively close to home, in clean and relatively modern

facilities and with adequate tools and equipment.

V) Supportive Colleagues: Employees have need for social interaction. Therefore,having friendly and supportive co-workers ad understanding supervisors leads to

increased job satisfaction. Most employees want their immediate supervisor to be

understanding and friendly, who offer praise for good performance, listen to

employees opinions and show a personal interest in them.

VI) Whistle Blowing: Whistle-blowers are employees who inform authorizes of wrongdoings of their companies or co-workers. Whistle blowing is important because committed

organizational members sometimes engage in unethical behavior in an intense

desire to succeed. Organizations can manage whistle blowing by communicating

the conditions that are appropriate for the disclosure of wrongdoing. Clearly

delineating wrongful behavior and the appropriate ways to respond are important

organizational actions.

VII) Social Responsibility: A corporate social responsibility is the obligation of anorganization to behave in ethical ways in the social environment in which it operates.

Socially responsible actions are expected of organizations. Current concerns include

protecting the environment, promoting worker safety, supporting social issues,

investing in the community, etc. Managers must encourage both individual ethical

behavior and organizational social responsibility.

Job Enrichment

It is a deliberate upgrading of responsibility, scope and challenge in the work itself. Job

enrichment usually includes increased responsibility, recognition, and opportunities for

growth, learning and achievement. Large companies that have used job-enrichment

programs to increase employees motivation and job satisfaction include AT & T, IBM, and

General Motors (Daft, 1997).


15/31

Workers Role in Job Satisfaction

Workers should also take some responsibility for his or her job satisfactory. Everett (1995)

proposed the following questions which employees ask them in regard to job satisfaction at

the job place:

1. When have I come closest to expressing my full potential in a work situation?2. What did it look like?3. What aspects of the work place where most supportive?4. What did I learn from that experience that could be applied to the presence

situation?

The Following suggestions can help a worker find personal job satisfaction:

1. Seek opportunities to demonstrate skills and talents2. Develop Communication Skills3. Acquire job related skill and try to implement them.4. Demonstrate creativity and initiative5. Improve team building and leadership skill6. Learn to de-stress.

Q.6 Given below is the HR policy glimpse of the VARK-LEARNING learning and training

solutions company

1. It offers cash rewards for staff members

2. It promotes the culture of employee referral and encourages people to refer people they

know may be their friends, ex. Colleagues batch mates, relatives.

3. What all needs do it takes care off according to Maslows need hierarchy

4. It recognizes good performances and gives fancy titles and jackets to the people who

perform well and also felicitates them in the Annual Day of the company.

What all aspects does it takes care of according to the Maslows Need Hierarchy? [10]

Maslows Hierarchy of Needs Theory

According to this theory, proposed by Maslow (1943), human beings have wants and desires

which influence their behavior; only unsatisfied needs can influence behavior, satisfied needs

cannot. The needs are arranged in order of importance, from the basic to the complex. The

person advances to the next level of needs only after the lower level need is at least minimally

satisfied. The further they progress up the hierarchy, the more individuality, humanness and

psychological health a person will show.


16/31

Maslows Need Hierarchy Pyramid

The five needs are:

1. Physiological: Includes hunger, thirst, shelter, sex, and other bodily needs2. Safety: Includes security and protection from physical and emotional harm3. Social:Includes affection, belongingness, acceptance, and friendship4. Esteem:Includes internal esteem factors, such as, self-respect, autonomy, and achievement;

and external esteem factors, such as, status, recognition, and attention

5. Self-actualization:The drive to become what one is capable of becoming; includes growth,achieving ones potential, and self-fulfillment

6. Maslow separated the five needs into higher and lower orders. Physiological and safetyneeds are described as lower-order. Social, esteem, and

self-actualization are classified as higher-order needs. Higher-order needs are satisfiedinternally, whereas, Lower-order needs are predominantly satisfied, externally.

Theory X and Theory Y

Douglas McGregor argued that a managers view of the nature of human beings is

based on a certain grouping of assumptions and he or she tends to mould his or her behavior

toward employees according to these assumptions.

Theory X

In this theory management assumes employees are inherently lazy and will avoid work, if

they can. Workers need to be closely supervised and a comprehensive system of controls and a

hierarchical structure is needed to supervise the workers closely. It is also assumed that workers

generally place security above all other factors and will display little ambition.

Theory Y

In this theory management assumes employees may be ambitious, self-motivated, and

anxious to accept greater responsibility, and exercise self-control, self-direction, autonomy and

empowerment. It is believed that employees enjoy their mental and physical work duties. It is

also believed that, if given the chance employees have the desire to be creative and forward


17/31

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.


18/31

Q.1 Write a note on classical era for evolution of Organization behavior. [10]

The Classical Era

We see this trend to continue in what is called as the classical era which covers the period

between 1900 to mid 1930s.the first general theories of management began to evolve and the

main contributors during this era were Frederic Taylor, Henri fayol, Max Weber, Mary Parker Follet

and Chester Barnard.

Frederick Taylors main emphasis was on finding one best way of doing each job. He stressed on

selecting the right people for the job. Train them to do it precisely in one best way. He favored

wage plans to motivate the workers. His scientific principles of management stressed the

following principles.

1. Shift all responsibility for the organization of work from the worker to the manager,managers should do all the thinking relating to the planning and design of work, leaving

the workers with the task of implementation.

2. Use Scientific methods to determine the most efficient way of doing work; assign theworkers task accordingly, specifying the precise way in which the work is to be done.

3. Select the best person to perform the job thus designed.4. Train the worker to do the work efficiently5. Monitor worker performances to ensure that appropriate work procedures are followed

and that appropriate results are achieved.

Taylor was one of the first to attempt to systematically analyze human behavior at work. He

insisted the use of time-and-motion study as a means of standardizing work activities. His

scientific approach called for detailed observation and measurement of even the most routine

work, to find the optimum mode of performance.

The Results were dramatic, with productivity increasing significantly. With passing time, new

organizational functions like personnel and quality control were created. Of course, in breaking

down each task to its smallest unit to find what Taylor called the one best way to do each, the

effect was to remove human variability. Hence he laid the ground for the mass production

techniques that dominated management thinking in the first half of the twentieth century.

Henri Fayol, a mining engineer and manager by profession, defined the nature and working

patterns of the twentieth-century organization in his book, General and industrial management,

published in 1916. In it, he laid down what he called 14 principles of management. This theory is

also called the Administrative Theory. The Principles of the theory are:

1. Division of work: tasks should be divided up with employees specializing in a limited set oftasks so that expertise is developed and productivity increased.

2. Authority and responsibility; authority is the right to give orders and entails enforcing themwith rewards and penalties; authority should be matched with corresponding

responsibility.

3. Discipline: this is essential for the smooth running of business and is dependent on goodleadership, clear and fair arguments, and the judicious application of penalties.

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


19/31

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

6. Sub ordination of individual interest to general interest; individual or group goals must notbe allowed to override those of the business.

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

8. Centralization: the extent to which orders should be issued only from the top of theorganization is a problem which should take into account its characteristics, such as size

and the capabilities of the personnel.

9. Scalar chain (line of authority): communications should normally flow up and down theline of authority running from the top to the bottom of the organization, but sideways

communication between those of equivalent rank in different departments can be

desirable so long as superiors are kept informed.

10. Order: both materials and personnel must always be in their proper place; people mustbe suited to their posts so there must be careful organization of work and selection of

personnel.

11. Equity: personnel must be treated with kindness and justice.12. Stability of tenure of personnel: rapid turnover of personnel should be avoided because

of the time required for the development of expertise.

13. Initiative; all employees should be encouraged to exercise initiative within limits imposedby the requirements of authority and discipline.

14. Espirit de corps: efforts must be made to promote harmony within the organization andprevent dissension and divisiveness.

The management functions, that fayol stated, consisted of planning, organizing, commanding,

coordinating and controlling. Many practicing managers, even today, list these functions as the

core of their activities. Fayol was also one of the first people to characterize a commercial

organizations activities into its basic components. He suggested that organizations could besub-divided into six main areas of activity;

1. Technical2. Commercial3. Financial4. Security5. Accounting6. Management

In defining the core principles governing how organizations worked and the contribution of

management to that process, fayol laid down a blue print that has shaped organization thinking

for almost a century.

Max Weber developed a theory based on authority relations and was the pioneer in looking at

management and OB from a structural view point. His theory is also known as bureaucratic

theory in management. He described ideal types of organization and called it a bureaucracy.

This was a system marked by division of labor, a clearly defined hierarchy, detailed rules and

regulations and impersonal relationships. He wanted this ideal types construct to be taken as a

basis for creating organizations in real world. The detailed features of Webers ideal


20/31

bureaucratic structure are a follows;

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

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

3. Intention, abstract rules govern decisions and actions. Rules are stable, exhaustive, andcan be learned. Decisions are recorded in permanent files (in traditional forms few

explicitly rules or written records).

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

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

6. Employment by the organization is a career. The official is a full time employee and looksforward to a lifelong career. After a trial period they get tenure of position and are

protected from arbitrary dismissal.

Q.2. Write a note on different types of groups. Explain. [10]

Groups can be of two types:

Formal Informal

Groups can be either formal or informal

1. Formal groups: A designated work group defined by the organizations structure. Aformal group is set by the organization to carry out work in support of the organizations

goals. In formal groups, the behaviors that one should engage in are stipulated by and

directed toward-organizational goals. Examples include a book keeping department an

executive committee, and a product development team. Formal groups may becommand groups or task groups.

i) Command Group: A command group consists of a manager and the employeeswho report to him or her. Thus, it is defined in terms of the organizations hierarchy.

Membership in the group arises from each employees on the organizational chart.

ii) Task Group: A task group is made up of employees who work together to complete aparticular task or project. A task groups boundaries are not limited to its immediate

hierarchical superior. It can cross command relationships. An employees

membership in the group arises from the responsibilities delegated to the employee

that is the employees responsibility to carry out particular activities. Task group may

be temporary with an established life span, or they may be open ended.

iii) Committee: A group of people officially delegated to perform a function, such asinvestigating, considering, reporting, or acting on a matter. Committee, one or more

persons appointed or elected to consider report on, or take action on a particular

matter. It investigates analyses and debates the problem and makes

recommendation. Committee usually has their own committee member comprising

of advisory authority, secretary and others. Recommendation is send to the authority

that is responsible for implementing them.


21/31

Characteristics of formal groups

Created to carry out some specific task or to meet a required goal Explicitly stated defined structure, procedural rules and membership Relatively permanent or temporary(e.g. steering group or problem solving group) Defined roles and designated work assignments

Well defined norms Specified goals and deadlines

2) Informal Groups: An organizations informal groups are the groups that evolve to meet socialor affiliation needs by bringing people together based on shared interests or friendship. Thus,

informal groups are alliances that are neither formally structured nor organizationally

determined. These groups are natural formations in the work environment that appear in

response to the need for social contact. Many factors explain why people are attracted to

one another. One explanation is simply proximity; when people work near one another

every day, they are likely to form friendship. That likelihood is even greater when people also

share similar attitudes, personalities, or economic status.

i) Friendship Groups: Groups often develop because the individual members have oneor more common characteristics. We call these formations friendship groups.

Social alliances, which frequently extend outside the work situation, can be based on

similar age, same political view, attended the same college, etc.

ii) Interest Groups: people who may or may not be aligned into common command ortask groups may affiliate to attain a specific objective with which each is concerned.

This is an interest group.

iii) Reference Groups: some times, people use a group as a basis for comparison inmaking decisions or forming opinions. When a group is used in this way, it is reference

group. Employees have reference groups inside or outside the organization where

they work. For most people, the family is the most important reference groups. Other

important reference groups typically include co-workers, friends, and members of thepersons religious organization. The employee need not admire a group for it to serve

as a reference group. Some reference groups serve as a negative reference; the

employee tries to be unlike members of these groups.

iv) Membership groups: When a person does belong to a group (formal and informalgroups to which employee actually belong) the group is called a membership group

(Or affiliation group) for that person. Members of a group have some collection of

benefits and responsibilities that go beyond the group serving as a reference point.

In a membership group, each member would be expected to contribute to the

groups wellbeing and would enjoy the benefits arising from the group members

friendship.

v) Cliques: A relatively permanent informal groups that involves friendship. Most of therelationships came down to two cliques, each with a hanger-on, and some isolates.

The groups included several different professions. They developed ideas about each

other. Clique membership acted as a form of social control, forcing people to

conform group desires. The groups established norms regarding output, treatment of

supervisor, reciprocity and other interpersonal relations. The cliques served as a

system for sense making about organizational events. They developed their own set

of beliefs, explaining things to each other.


22/31

Q.3 Explain the approaches of conflict management. [10]

There are two types of conflict management approaches:

Direct

IndirectDirect conflict management approaches

There are five approaches to direct conflict management. They are based on the relative

emphasis on co- cooperativeness and assertiveness in the relationship between the conflicting

parties. They are as follows:

Avoidance- it is an extreme form of inattention; everyone simply pretends that the conflict does

not really exist and hopes that it will go away.

Accommodation involves playing down differences among the conflicting parties and

highlighting similarities and areas of agreement. This peaceful coexistence ignores the realessence of a given conflict and often creates frustration and resentment.

Compromise- it occurs when each party gives up something of value to the others. As a result of

no one getting its full desires, the antecedent conditions for future conflicts are established.

Competition-here a victory is achieved through force, superior skill, or domination by one party.

It may also occur as a result of authoritative command, whereby a formal authority simply

dictates a solution and specifies what is gained and what is lost by whom. This is a case of win-

lose situation and as a result, future conflicts over the same issues are likely to occur.

Collaboration- it involves recognition by all conflicting parties that something is wrong and

needs attention. It stresses gathering and evaluating information in solving disputes and making

choices.

Assertive Competing collaborating

Compromising

Un-assertive un-cooperative cooperative

The table below shoes the appropriate conflict-handling situation.

Conflict-handling style Appropriate Situation


23/31

Collaborating

1) To find an integrative solution when bothsets of concerns are too important to be

compromised2) When your objective is to learn3) To merge insights from people with

different perspectives.

4) To gain commitment by incorporatingconcerns into a consensus.

5) To work through feelings that hasinterfered with a relationship.

Compromising

1) When goals are important, but not worththe effort or potential disruption of more

assertive modes.

2) When opponents with equal power arecommitted to mutually exclusive goals.

3) To achieve temporary settlements tocomplex issues.

4) To arrive at expedient solutions under timepressure.

5) As a backup when collaboration orcompetition is unsuccessful.

Competing

1.when quick, decisive actions is vital(e.g.;

emergencies

2. on important issues where unpopular

actions need implementing(e.g., cost

cutting, enforcing unpopular rules, discipline)

3. On issues vital to company welfare whenyou know you are right.

4. Against people who take advantage of

non-competitive behavior


24/31

Avoiding

1) When an issue is trivial, or more importantissues are pressing.

2) When you perceive no chance ofsatisfying your concerns

3) When potential disruption outweighs thebenefits of resolution.

4) To let people cool down and regainperspective.

5) When others can resolve the conflictmore effectively

6) When issues seem tangential orsymptomatic of other issues.

Accommodating

1) When you find you are wrong-to allowa better position to be heard, to learn,and to show your reasonableness.

2) When issues are more important toothers than to you-to satisfy others and

maintain cooperation.

3) to build social credits for later issues.4) To minimize loss when you are

outmatched and losing.

5) When harmony and stability areespecially important.

6) To allow employees to develop bylearning from

Indirect conflict management approaches

Indirect conflict management approaches include reduced interdependence, appeals to

common goals, hierarchical referral, and alterations in the use of mythology and scripts

(Schermerhorn et al 2002)

Reduced interdependence when work-flow conflicts exist, managers can adjust the level of

interdependency among units or individuals (Walton & Dutton, 1969). To reduce the conflict,

contact between conflicting parties may be reduced. The conflicting units can then be

separated from one another, and each can be provided separate access to resources.

Buffering is another technique to build an inventory, or butter, between the two groups so that

any output slowdown or excess is absorbed by the inventory and does not directly pressure the


25/31

target group.

Appeals to common goals an appeal to common goals can focus on the mutual

interdependence of the conflicting parties to achieve the common goal of an organization.

Hierarchical Referral- Here conflicts are reported to the senior levels to reconcile and solve.

Q.4 the environmental stressors have a great impact on work performance and adjustment ofthe individual in an organization. Discuss the different categories of environmental stressors.

While environmental factors are forces outside the organization, which may act as potential

sources of stress due to uncertainties and threats that they create for any organization and its

members, factors within organization can also act as a potential source of stress. Together or

singly they may create a tense and volatile working environment which can cause stress for

organizational members because the inability of individuals to handle the pressures arising out of

these sources.

For the purpose of analysis and understanding, stressors are divided into two classes:

Those that lie within the individual, and Those that are a part of the external environment

Internal stimuli for stress: The internal sources of stress are complex and difficult to isolate. There

are three internal sources of stress. Each of these internal influences on stress is considered

separately, although they function in continual interaction.

1) Inner Conflicts: for many people, stress is a constant companion regardless of how favorableor unfavorable external conditions may be. Non Specific fears, anxiety and guilt feelings

maintain the body in a state of readiness for emergency action on a continuing basis.

2) Perceptual Influences: Perception is influenced by a number of internal factors. Certainlypeople with inner conflicts sufficient to cause stress are more likely than self-confident people

to perceive environmental conditions as threatening. Because the environment is presumed

to be full of danger, evidence of danger is perceived everywhere. They are selectively

perceived in exaggerated form.3) Thresholds of stress: the threshold of stress is not independent of the two factors just

discussed. People who have few internal conflicts and a minimum of perceptual distortion

can withstand external conflict and pressure that weaker personalities would find intolerable.

People who have high thresholds for stress have high levels of resistance to it.

4) Motivational Level: People who are ambitious and highly motivated to achieve are morelikely to experience stress than those who are content with their career status. Persons whose

self-expectations exceed their abilities and opportunities are especially stress prone.

Environmental stressors

Environmental and internal conditions that lie beyond an individuals control are called

environmental stressors. Such stressors can have considerable impact on work performance

and adjustment. We can organize environmental stressors into the following categories.

i) Task demand: Task demands are factors related to a persons job. They include thedesign of the individuals job, working conditions, and the physical work out.

Changes and lack of control are two of the most stressful demands people face at

work. Change leads to uncertainty, a lack of predictability in a persons daily tasks

and activities and may be caused by job insecurity related to difficult economic

times. Technology and technological innovation also create change and uncertainty


26/31

for many employees, requiring adjustments in training, education and skill

development.

Lack of control is a second major source of stress, especially in work environments

that are difficult and psychologically demanding. The lack of control may be

caused by inability to influence the timing of tasks and activities, to select tools or

methods for accomplishing the work, to make decisions that influence workoutcomes, or to exercise direct action to affect the work outcomes.

ii) Role Demand: the social-psychological demands of the work environment may beevery bit as stressful as task demands at work. Role demands relate to pressures

placed on a person as a function of the particular role he or she plays in the

organization. Role conflicts create expectations that may be hard to reconcile or

satisfy. Role conflicts result from inconsistent or incompatible expectations

communicated to a person. The conflict may be an inter-role, intra-role or person-

role conflict.

a) Inter-role conflict: is caused by conflicting expectations related to two separate roles,such as employee and parent. For example, the employee with major sales presentation

on Monday and a sick child at home is likely to experience inter-role conflict,b) Intra-role conflict: is caused by conflicting expectations related to a single role, such as

employee and parent. For example, the manager who presses employees for both very

fast work and high quality work may be viewed at some point as creating a conflict for

employees.

c) Person-role conflict: Ethics violations are likely to cause person-role conflicts. Employeesexpected to behave in ways that violate personal values, beliefs or principles experience

conflict.

The second major cause of role stress is role ambiguity. Role ambiguity is created when role

expectations are not clearly understood and the employee is not sure what he or she is to

do. Role ambiguity is the confusion a person experiences related to the expectations of

others. Role ambiguity may be caused by not understanding what is expected, not knowinghow to do it, or not knowing the result of failure to do it.

III) Inter-personal demands: are pressures created by other employees. Lack of social

support from colleagues and poor interpersonal relationship can cause considerable stress,

especially employees with a high social need. Abrasive personalities, sexual harassment and the

leadership style in the organization are interpersonal demands for people at work.

1) The abrasive person: May be an able and talented employee, but one who createsemotional waves that others at work must accommodate.

2) Sexual Harassment: the vast majority of sexual harassment is directed at women in theworkplace, creating a stressful working environment for the person being harassed, as well as

for others.

3) Leadership Styles: whether authoritarian or participative, create stress for differentpersonality types. Employees who feel secure with firm, directive leadership may be anxious

with an open, participative style. Those comfortable with participative leadership may feel

restrained by a directive style.

4) Physical Demands: Non-work demands create stress for people, which carry over into thework environment or vice versa. Workers subject to family demands related to marriage,

child rearing and parental care may create role conflicts or overloads that are difficult to

manage. In addition to family demands, people have personal demands related to non-


27/31

work organizational commitments such as religious and public service organizations. These

demand become more or less stressful, depending on their compatibility with the persons

work and family life and their capacity to provide alternative satisfactions for the person.

2. Q.5 given below are certain instances observed by the summer trainee Ritu, whilemaking an observational study at Global Green consultants. An organization dealingwith recycling of plastic products waste etc. She makes the following observation about

two key people in the organization.

1. Mr. PatnayakHe is a very friendly person and encourages his team members by giving those

recommendations and appreciations. This helps HR to decide about giving a bonus or promotion

to employees.

2. Mr. Dutta - He is an aggressive person. He frequently loses his temper. Ritu observes that he

frequently punishes the non-performers and also give them warnings regarding suspension etc.

Now explain what base of power does Mr. Patnayak and Mr. Dutta belongs to. Explain the type

of power they use often

Ans: Power can be categorized into two types: formal and informal

A. Formal Power: it is based on the position of an individual in an organization. Formalpower is derived from either ones ability to coerce or reward others or is derived from

the formal authority vested in the individual due to his/ her strategic position in the

organizational hierarchy. For example, a manager may threaten to withhold a pay raise,

or to transfer, demote, or even recommend the firing of a subordinate who does not act

as desired. Such coercive power is the extent to which a manager can deny desired

rewards or administrator punishments to control other people. The availability of

coercive power also varies across organizations. The presence of unions and

organizational policies on employee treatment can weaken this power base significantly.

Formal power may be categorized into four types which are as follows:

Mr. Dutta is based on Coercive Power

1. Coercive Power: the coercive power base is being dependent on fear. It is based on the

application, or the threat of application, of physical sanctions such as the infliction of pain, the

generation of frustration through restriction of movement, or the controlling by force of basic

physiological or safety needs. In an organization one can exercise power over another if they

have the power to dismiss, suspend, demote another assuming that the job is valuable to the

person on who power is being unleashed.

Mr. Patnayak is based on Reward Power

2. Reward Power: the opposite of coercive power is reward power. Reward power is the extent

to which a manager can use extrinsic and intrinsic rewards to control other people. Examples of

such rewards include money, promotions, compliments, or enriched jobs. Al though all

managers have some access to reward, success in accessing and utilizing rewards to achieve

influence varies according to the skills of the manager.

3. Legitimate Power: the third base of position power is legitimate power, or formal authority. It

seems from the extent to which a manager can use subordinates internalized values or beliefs

that the boss has a rightof command to control their behavior. For example, the boss may

have the formal authority to approve or deny such employee requests as job transfers,


28/31

equipment, purchases, personal time off, or overtime work. Legitimate power represents a

special kind of power a manager has because subordinates believe it is legitimate for a person

occupying the managerial position to have the right to command.

The lack of this is legitimacy will result in authority not being accepted by subordinates. Thus this

type of power has the following elements:

It represents the power a person receives as a result of his/her position in the formalhierarchy.

Positions of authority include coercive and reward powers. Legitimate power, however, is not limited to the power to coerce and reward. It

encompasses the acceptance of the authority of a position by members of an

organization.

4. Information Power: this type of power is derived from access to and control over

information. When people have needed information, others become dependent on them.

(For example, managers have access to data that subordinates do not have). Normally the

higher the level, the more information would be accessed by managers.

B. Personal Power: personal power resides in the individual and is independent of thatindividuals position. Three bases of personal power are expertise, rational persuasion

and reference.

Expert Power is the ability to control another persons behavior by virtue of possessing

knowledge, experience, or judgment that the other person lacks, but needs. A

subordinate obeys a supervisor possessing expert power because the boss ordinarily

knows more about what is to be done or how it is to done than does the subordinates.

Expert power is relative, not absolute. However the table may turn in case the

subordinate has superior knowledge or skills than his/her boss. In this age of technology

driven environments, the second proposition holds true in many occasions where the

boss is dependent heavily on the juniors for technologically oriented support.

Rational persuasion is the ability to control anothers behavior, since, through theindividuals efforts; the person accepts the desirability of an offered goal and a viable

way of achieving it. Rational persuasion involves both explaining the desire ability of

expected outcomes and showing how specific actions will achieve these outcomes.

Referent power is the ability to control anothers behavior because the person wants to

identify with the power source. In this case, a subordinate obeys the boss because he or

she wants to behave, perceive, or believe as the boss does. This obedience may occur,

for example, because the subordinates likes the boss personally and therefore tries to do

things the way the boss wants them done. In a sense, the subordinate attempts to avoid

doing anything that would interfere with the pleasing boss-subordinate relationship.

Followership is not based on what the subordinate will get for specific actions or specific

levels of performance, but on what the individual represents- a path toward lucrative

future prospects.

Charismatic power is an extension of referent power stemming from an individuals

personality and interpersonal style. Others follow because they can articulate attractive

visions, take personal risks, demonstrate follower sensitivity, etc

Q.6 Fashion4Now is a famous and old magazine. The top management decides to start the e -

edition of the magazine. They also decide the redefine the policies and culture of window to


29/31

truth To start implementing, this change, they frequently call meetings of employees. They have

also formed groups at different levels to clarify doubts and explain the perspective of change.

Analyze the situation in the context of organizational change and elaborate why the top

management is following the discussed practices and what approach is most evident in the

context. [10]

Ans:Forces for change are of two types:

Internal forces External forces

Internal forces

Any change in organizations internal factors may also necessitate change. Such a change is

required because of two reason; change in managerial personnel and deficiency in existing

organizational practices.

Change in the top management: change in the top management and consequent change in

the ideas to run the organization also leads to change in the system, structure and processes.

Old mangers are replaced by new managers which are necessitated because of retirement,

promotion, transfer or dismissal. Each new manager brings his own ideas and ways of workinginto the organization. The formal or informal relationship may change because of changes in top

management. Moreover attitudes, ideology, leadership style of the person may be different

from the earlier one, this will reflect in their actions and decisions. The result is that an

organization has to change accordingly.

Change in size of the organization: change in the organizations size leads to change in the

internal structure and complexity of the operations in the organizations.

Performance gaps: when a gap between set target and actual results (in terms of market share,

employee productivity and profit) is identified, organizations face the forces to change and

reduce the gap.

Employee needs and Values: with changing needs and values of the employees, organizations

change their policies. For example, attractive financial incentives, challenging assignments,vertical growth opportunities and autonomy at work may be provided in an organization to

attract and retain its effective employees.

Deficiency in existing organization: Some times, changes are necessary because of deficiency

in the present organizational arrangement and process. These deficiencies may be in the form

of unmanageable span of management, large number of managerial levels, lack of co-

ordination between various departments, obstacles in communication, multiplicity of

committees, lack of uniformity in policy decisions, lack of cooperation between line and staff

and so on.

External Forces

Each organization has goals and responsibility related to others in its environment. Thus, an

organization must not only deal with its environment in conducting its affairs, but also give

consideration to the goals of others, as it establishes its goals and conducts its operations. The

present day environment is dynamic and will continue to be dynamic. Changes in social,

political, economic, technological, and legal environment force organizations to change

themselves. Such changes may result in organizational changes like major functions, production

process, labor management relations; nature of competition, economic constraints,

organization method, etc. in order to survive in the changing environment, organization must

change.


30/31

Technology: technological changes are responsible for changing the nature of job performed

at all levels in an organization. When there is a change in technology in the organizations

environment and other organizations adopt the new technology, the organization under focus

become less cost-effective and its competitive position weakens. Therefore, it has to adopt new

technology. When the organizations adopt a new technology, its work structures are affected

and a new equilibrium has to be established. We have seen that technology has impact onorganization structure, organizational process, and behavior of people. For example, computers

and automation have made significant impact on organizational functioning.

Business scenario: Due to rapid change in the business scenario with increasing competition and

global economy, the needs and demands are also changing among the customers, suppliers

and other stake holders. Organizations are, therefore, forced to change their operational

methods to meet the demands of the stakeholders. Since every organization exports its output

to the environment, an organization has to face competition in the market. There may be two

types of forces which may affect the competitive position of an organization- other

organizations supplying the same products and, buyers who buying the product. Any change in

these forces may require suitable changes in the organization. For example, when Indian

economy was liberalized (the process still continues, there were many foreign organizationswhich entered in the Indian market. This forced many Indian organizations to re-align themselves

with the new situation. The result is that there have been many cases of divesting the business

and concentrating on the core business, acquiring core business, and developing competitive

competence to face competitive threats. Similarly, there may be changes in buyers in terms of

their needs, liking-disliking, and income disposal for a product. These changes force the

organizations to bring those products which meet buyers requirements.

Environmental and national factors: environmental factors such as economic, political and

demographic and legal factors play a vital role in devising organizational policies and strategy.

Any change in these political and legal factors may affect the organizational operation. For

example, organizations may have to change their employment policies in accordance with the

government policy, demand of the non-government organizations and changing economicconditions of a country.

Social Changes: Social Changes reflect in term of peoples aspirations, their needs, and their

way of working. Social changes have taken place because of the several forces like level of

education, urbanization, feeling of autonomy, and international impact due to new information

sources. These social changes affect the behavior of people in the organization. Therefore it is

required to make adjustment in its working so that it matches with people.


31/31

Mgt Process and Organisation Behaviour

Documents

Transcript of Mgt Process and Organisation Behaviour