Showing posts with label mco-01. Show all posts
Showing posts with label mco-01. Show all posts

Sunday, 25 August 2024

All Questions - MCO-01 - ORGANISATION THEORY AND BEHAVIOUR - Masters of Commerce (Mcom) - First Semester 2024

                        IGNOU ASSIGNMENT SOLUTIONS

        MASTER OF COMMERCE (MCOM - SEMESTER 1)

               MCO-01 - Organisation Theory and Behavior  

                             MCO - 01 /TMA/2024 


Please Note: 
These assignments are valid for two admission cycles (January 2024 and July 2024). The validity is given below:  
1 Those who are enrolled in January 2024, it is valid upto June 2024.  
2 Those who are enrolled in July 2024, it is valid upto December 2024.  
In case you are planning to appear in June Term-End Examination, you must submit the assignments to the Coordinator of your Study Centre latest by 15th March, and if you are planning to appear in December Term-End Examination, you must submit them latest by 15th September. 

Question No. 1
What are various principles of management? How are modern organisations different from typical classical organisations, in terms of practices of various principles of management? 
Answer:

An organisation is a coordinated social entity, grouped together and interact for the achievement of the common goal. It refers to the process of identification and grouping of activities, defining and establishing the authority responsibility relationship and determining the manner in which the organisational activities are interrelated. Thus the organisation consists of a group of people working together for the achievement of the organisational goal. Various theories have been propounded which explain the organisation in terms of closed, open and dynamic system.

The principles of organisation are guidelines for planning an efficient organisation structure. Let us discuss the important principles of organisation : 

Unity of Objectives : An enterprise strives to accomplish certain objectives. The organisation and every part of it should be directed towards the attainment of objectives. Every member of the organisation should be familiar with its goals and objectives. There must be unity of objective so that all efforts can be concentrated on the set goals. The principle requires objectives to be clearly formulated and well understood. 

Division of Work and Specialisation : The entire work in the organisation should be divided into various parts so that every individual is confined to the performance of a single job. This facilitates specialisation which in turn leads to efficiency and quality. However, each area of specialisation must be interrelated to the total integrated system by means of coordination of all activities of all departments. 

Definition of Jobs : Every position in the organisation should be clearly defined in relation to other positions in the organisation. The duties and responsibilities assigned to every position and its relationship with other positions should be so defined that there is no overlapping of functions. 

Separation of Line and Staff Functions : Whenever possible, line functions should be separated from staff activities. Line functions are those which accomplish the main objectives of the company. In many manufacturing companies, the manufacturing and sales departments are considered to be accomplishing the main objectives of the business and so are called the line functions. Other functions like personnel, plant maintenance, financing and legal are considered as staff functions. 

Chain of Command or Scalar Principle : There must be clear lines of authority running from the top to the bottom of the organisation. Authority is the right to decide, direct and coordinate. The organisation structure should facilitate delegation of authority. Clarity is achieved through delegation by steps or levels from the top position to the operating level. From the chief executive, a line of authority may proceed to departmental managers, to supervisors or foremen and finally to workers. This chain of command is also known as scalar principle of organisation. 

Parity of Authority and Responsibility or Principle of Correspondence : Responsibility should always be coupled with corresponding authority. Each subordinate must have sufficient authority to discharge the responsibility entrusted to him. This principle suggests that if a plant manager in a multiplant organisation is held accountable for all activities in his plant, he should not be subject to seek orders from company headquarters for his day to day activities. 

Unity of Command : No one in the organisation should report to more than one line supervisor. Everyone in the organisation should know to whom he reports and who reports to him. Stated simply, everyone should have only one boss. Receiving directions from several supervisors may result in confusion, chaos, conflicts and lack of action. 

Unity of Direction : According to this principle a group of activities that have a common goal should be managed by one person. There should be one head and one plan for a common objective of different activities. This facilitates smooth progression towards the achievements of overall organisational goals. 

Exception Principle : This principle suggests that higher level managers should attend to exceptional matters only. All routine decisions should be taken at lower level, whereas problems involving unusual matters and policy decisions should be referred to higher levels. 

Span of Supervision : The term ‘span of supervision’ means the number of persons a manager or a supervisor can direct. No manager should be required to supervise more subordinates than he can effectively manage within the limits of available time and ability. The exact number may vary according to the nature of the job and the frequency of intensity of supervision needed. 

Principle of Balance : There should be proper balance between various parts of the organisation and no function should be given undue importance at the cost of others. Balance should be maintained also between centralisation and decentralisation, span of supervision and lines of communication, and authority allocated to department and personnel at various levels. 

Communication : A good communication network is essential to achieve the objectives of an organisation. No doubt the line of authority provides channels of communication downward and upward, still some blocks in communication occur in many organisation. The confidence of superior in his subordinates and two-way communication are the factors that unite an organisation into an effectively operating system. 

Flexibility : The organisation structure should be flexible so that it can be easily and economically adopted to the changes in the nature of business as well as technological innovations. Flexibility of organisation structure ensures the ability to change with the environment without disrupting the basic design. 

Continuity : Change is the law of nature. Many changes take place outside the organisation. These changes must be reflected in the organisation. For this purpose the form of organisation structure must be able to serve the enterprise to attain its objective for a long period of time.

Differences between traditional and modern organization structures

The following list demonstrates how traditional and modern organizational structures differ from one another:

Decision-making
In a traditional organizational structure, the decision-making power is highest at the top and reduces as it moves down the chart. The CEO has the most decision-making power and may delegate some decisions to their department heads, who may then turn some decisions over to their team supervisors. In this structure, employees have little decision-making power and instead receive instructions from their supervisors. Having power centralized amongst a few members of the organization can be beneficial because it provides clear organization-wide messages about goals and expectations, eliminating the potential for confusion.

A modern organizational structure, however, does not use that system of centralized power. Instead, non-management employees often can determine what projects they want to work on and the methods they use to complete them. In some situations, managerial staff may even collaborate with employees or take their feedback on decisions made at the company. This method helps empower employees by making their voices and ideas heard at the company. Because employees have more decision-making power in a modern organizational structure, they can also proactively determine when and how to help other teams on projects rather than waiting for instructions from their supervisor to do so.

Communication
Due to the hierarchical nature of a traditional organization structure, the individuals at the highest level of management may have little communication with employees who are not their direct subordinates. For example, information from upper management may get disseminated through emails, newsletters or department heads.

A modern organizational structure has fewer departmental boundaries, which enables faster and easier communication methods. They may employ the use of instant messaging apps or software that allows everyone in the organization to communicate with one another. And in a flat organizational structure, for example, there is no middle management, so employees have more opportunities to speak directly to higher-level managers.

Teamwork
Businesses that follow the traditional organizational structure divide their employees into departments or divisions depending on their roles. As a result, employees from different departments may have few chances to work with one another. The focus on their specific role also enables them to gain significant knowledge and experience, potentially making them experts in their field. However, because they only perform their particular job and work with colleagues performing similar tasks, it may limit their opportunities to stretch their abilities and learn more about other aspects of the business.

Businesses with modern organizational structures promote the ideas of teamwork and collaboration, enabling employees from different areas to work together. Pulling in resources can help solve problems or reach goals more quickly. These teams often have more autonomy than those in traditional structures, who must wait for instructions from their supervisor on how to complete tasks or projects. This system can help build relationships throughout the company, as employees realize they need to rely on one another, no matter what line of business they are in, to reach company goals.

Flexibility
Employees in traditional organizational structures have set roles and responsibilities that they fulfill. Organizations in stable business environments benefit from this structure because employees know how to complete their job and meet the typical challenges associated with it. If the nature of the organization's business rarely changes, then these set roles can make work more productive and efficient. Due to the more rigid nature of these organizations, it may be difficult for them to adapt to dynamic environments, or they may be slower to meet unexpected challenges.

Employees in modern organizational structures have more flexibility in their responsibilities, which benefits organizations in more dynamic environments. Having that flexibility enables employees to easily collaborate across departments to solve challenges. These employees also gain the opportunity to learn new things by working on projects or teams of their choosing.

Question No. 2

(a) How do principles of organisation facilitate smooth functioning of the organisation? 
(b) How is team building useful for organisational development interventions? 

Answer - (a part)

The principles of organization that can facilitate smooth functioning of organization are as follows:  
 Unity of objectives: There should be unity of objective for each member of the organization so that all collective efforts can be concentrated on the set goals. The objectives of organization should be well understood and formulated so that every member is familiar with it.  
 Division of work and specialization: The division of total work is done as to confine every individual to the performance of a single job. It facilitates specialization in the organization and enhances efficiency and quality. Every area of specialization should be interconnected to the total integrated system by means of coordinating together of all activities done in all departments.  
 Definition of job: There should be appropriate defining of every position in relation to other positions in the organization. The overlapping of functions should be avoided. It can be done by assigning duties and responsibilities to every position and its relationships with other positions in the organization. 
 Separation of line and staff functions: Line functions are those functions that help in accomplishing the main objectives of the company. These line functions should be separated from staff activities. The functions other than line functions are staff functions.  
 Chain of Command and Scalar Principle: According to this scalar principle, the line of authority from top level to bottom level of organization should be clearly defined. This authority refers to the right to decide direct and coordinate. The structure of the organization should facilitate delegation of authority. The clarity is completely achieved through delegation by steps or levels from the top position to the operating level of the organization. It is also referred to as chain of command.   
 Parity of Authority and Responsibility or Principle of Correspondence: The responsibility delivered to every employee should be accompanied with its corresponding authority. Every subordinate should have sufficient authority to perform responsibilities entrusted to him. It will make himself reliant and can help him in taking quiet decisions without concerning higher departments or authorities.  
 Unity of command: Every subordinate should report to his assigned superiors or boss. It will avoid state of confusion, chaos, conflicts and lack of action in the organization.   
 Unity of Direction: The unity of direction states that group of activities with a common goal should be managed by one person. It encourages one head and one plan of action for a common objective of different activities.  
 Exception principle: The exception principle states that high level of managers should attend to exceptional matters only. The higher level of managers should deal with problems that concerns with unusual matter and policy decisions. The routine decisions should be referred to lower level of managers.   
 Span of supervision: It refers to the number of persons that a manager or supervisor can direct or control. Every manager is confined with restricted numbers of subordinates so that he can direct them efficiently within the limits of available time and ability. The number of persons is dependent on the nature of job and the desired frequency of intensity of supervision required in the organization.  
 Principle of Balance: The principle of balance states that there should be proper balance between various parts of the organization. No function should be given undue importance at the cost of other functions. This balance should also be maintained between centralization and decentralization, span of supervision and lines of communication and authority allocated to department and personnel at various levels.   
 Communication: The objectives of organization desires good communication network. The two way communication between superiors and subordinates helps in uniting organization into working as effectively operating system.  
 Flexibility: The flexibility in organizational structure helps in adapting to changes in the nature of the business as well as changes corresponding to technological innovations.   
 Continuity: The continuity in efficient performance of organization can be achieved by adapting to new changes that takes place inside or outside the organization. It will help organization to survive and excel for longer duration of time.

Answer - (b part)

Team building is an effective strategy for organizations that want to cultivate an effective corporate culture where employees enjoy coming to work, trust each other, and collaborate easily. Creating a strong team goes beyond hiring competent and kind employees. Once a company hires employees, it's helpful to explore the next step of focusing on how to bring them together and transform them into a productive team. In this article, we discuss the importance of team building, share some team building tips, and suggest unique team building activity ideas.

The importance of team building

Here are reasons that convey the importance of team building activities in an organization and how you can implement them:

1. Builds trust
Trust is an essential element of an effective team. For employees to collaborate, knowing and earning trust from each other is crucial. Team building is an engaging activity involving diverse teams who interact through different activities away from office work to improve their teamwork. When an organization builds trust in the workplace, it allows employees to complete their tasks and make their own decisions.
Trust makes employees feel safe and quickly establishes their strengths and weaknesses. It may also make employees more proactive with their ideas, feel ready to take risks, listen to one another, and arrive at consensus more easily. Eventually, the entire team becomes more confident about exposing their vulnerabilities to each other.

2. Fosters better communication
When employees work together, they strategize the best way to handle tasks and deliver excellent results. They can divide tasks to work in small groups, share ideas, and complete the work efficiently. With proper communication, employees understand their roles and what their colleagues are doing. This enhances involvement in how others are performing, improves collaboration, and encourages people to assist each other in achieving their goals.

3. Improves performance
Team building involves doing activities that help foster the importance of sharing tasks in the workplace. If an employee has less work to do, they can help other teams to complete their work. This enhances the realization of project objectives, which increases the overall productivity of an organization. Through team building activities, employees learn new skills, which they incorporate into their existing skill set. It enhances the performance of a team, makes them more efficient and eventually complete tasks on time.

4. Encourages collaboration
One of the most significant benefits of team building is the improvement of interpersonal skills among employees. When people work together, they share their good and bad experiences. This brings them closer to each other and enhances trust. It also creates a friendly working environment where employees are free to request help or willingly assist others.

5. Connects remote teams
Organizations that have some of their teams working remotely use team building activities as an effective way of uniting all team members working from different locations. Even though remote teams also contribute to the production of a company, coming together helps them understand each other better. It's through these connections that people build new networks and create a more positive remote working environment.

6. Embrace diversity among working teams
Team building also promotes diversity. Most companies have employees who come from different countries, backgrounds, and cultures, and speak different languages. The importance of team building is to foster an inclusive environment, where people celebrate their differences, learn from each other, and open new opportunities for communication.

7. Attracts new talent
Candidates often look for roles based on more than earning a salary, including how an organization takes care of employees' welfare. Potential candidates may search for a friendly working environment that helps them achieve their career goals. Team building is an ideal strategy to attract and retain talented employees as it fosters cohesion, productivity, and a happy team.

10. Encourages innovativeness
When employees work together, they can generate great ideas. Organizations that encourage open forums where creative people sit and interact are likely to foster innovations. Typically, this improves critical thinking among team members and helps generate new ideas that are helpful for a company to advance.

11. Builds a happy team
When a company has a happy team, the result is happy and satisfied clients and customers. It motivates employees to work and makes them less likely to leave their job. This minimizes turnover costs related to recruiting and onboarding new employees. Customers can also become more loyal to the business when they enjoy quality customer services from the team.

12. Promotes health
Team building benefits employees by fostering physical and mental health. Team building often involves events outside the office that require teamwork among employees to solve problems. Typically, this requires employees to complete tasks aside from their typical job responsibilities, like participating in fun activities and physical challenges. These activities promote networking, communication, and mental health for the team.

13. Promotes company culture
Team building activities help a company improve its culture. When employees communicate and collaborate, it improves their performance, helps resolve conflicts, and enhances respect for each other. As an organization recognizes more talents, it motivates others to do better in their areas of work.

Conclusion:
Creating a strong team goes beyond hiring competent and kind employees. Once a company hires employees, it's helpful to explore the next step of focusing on how to bring them together and transform them into a productive team. In this article, we discuss the importance of team building, share some team building tips, and suggest unique team building activity ideas.


Question No. 3 
Comment briefly on the following statements: 
(a) Study of OB lead to managerial effectiveness. 
(b) Learning results in change in behaviour and it also enhance the performance. 
(c) Attitude influence behaviour, and behaviour also influences attitude. 
(d) Social learning theory help in shaping of personality. 


Answer 3 (A) Part 

Organizational Behavior can be seen as a field of study that investigates the impact that individuals, groups and structures have on behavior within an organization, to enable applying this knowledge towards improving organizational effectiveness. Organizational Behavior is an important concept for any organization, since it deals with the three determinants of behavior in organizations: Individuals, Groups and Structure. Organizational Behavior then applies the knowledge gained about individuals, groups and the effect of structure on behavior in order to make organizations work more effectively. In a nut shell, OB is concerned with the study of what people do in an organization and how their behavior affects the organizations performance. 

Seeing as OB is concerned with employee related situations, it tends to emphasize behavior related to jobs, work, absenteeism, employment turnover, human performance and management. The organization’s base rests on management’s philosophy, values, vision and goals. This in turn drives the organizational culture which is composed of the formal organization, informal organization, and the social environment. The culture determines the type of leadership, communication, and group dynamics within the organization. The workers perceive this as the quality of work life which directs their degree of motivation. The final outcomes are performance, individual satisfaction, and personal growth and development. All these elements combine to build the model or framework that the organization operates from. 

The ability to use the tools of organizational behavior to understand behavior in organizations is one reason for studying this subject. A second reason is to learn how to apply these concepts, theories, and techniques to improve behavior in organizations so that individuals, groups, and organizations can achieve their goals. Managers are challenged to find new ways to motivate and coordinate employees to ensure that their goals are aligned with organizational goals. Organizational Behavior addresses the following points:

  • Organizational behavior studies the factors that impact individual and group behavior in organizations and how organizations manage their environments. Organizational behavior provides a set of tools, theories and concepts to understand, analyze, describe, and manage attitudes and behavior in organizations.
  • The study of organizational behavior can improve and change individual, group, and organizational Behavior to attain individual, group, and organizational goals.
  • Organizational behavior can be analyzed at three levels: the individual, the group, and the Organization as a whole. A full understanding must include an examination of behavioral factors at each level.

A manager’s job is to use the tools of organizational behavior to increase effectiveness, and the organization’s ability to achieve its goal. Management is the process of planning, organizing, leading, and controlling an organization’s human, financial, material, and other resources to increase its effectiveness. 

In view of the fact that OB is the grounds on which an organization builds itself, Psychology, Sociology and Anthropology play a vital role in understanding workplace behavior and employee related situations.

  • Psychology – is a science which seeks to measure, explain and sometimes change the behavior of humans. Early organizational psychologists concerned themselves with the problems of fatigue, boredom, and other factors which could have an effect on efficient workforce performance. More recently, contributions in the field of organizational psychology have expanded to learning, perception, personality, emotions, job satisfaction, decision making processes, leadership, needs and motivational forces, employee selection techniques and job stress.

  • Sociology – Studies people in relation to their social environment or culture. Sociologists have contributed to OB through their study of group behavior in organizations, both formal and complex. Sociology has contributed to research on organizational culture, formal organization theory and structure, organizational techniques, communications, power and conflict.

  • Anthropology – is the study of societies to learn about human beings and their activities. Work on this field has helped understanding differences in fundamental values, attitudes and behavior between people in different countries and within different organizations.

Organizational Behavior is an indigenous learning of techniques which deals with the knowledge gained about individuals, groups and the effect of structure on behavior in order to make organizations work more effectively. Through these methods a budding manager can gain several virtues to induce personal growth of self and group related issues. Since managers are individuals who achieve goals through other people, OB makes us aware of the various roles we need to play as managers to encourage the workforce to work with more satisfaction and profitability. 

As managers we will participate in several roles, mainly:

1. Interpersonal Roles:

Figurehead: All managers are required to perform duties that are ceremonial and symbolic in nature, representing the organization/unit to outsiders.

Leader: All managers also have a leadership role. This role includes hiring, training, motivating employees, disciplining employees and unifying efforts.

2. Informational Roles:

Monitor: Managers monitor the flow of information. All managers, to some degree, collect information from outside organizations and institutions. And Transmit necessary information to outsiders.

Disseminator: Managers then act as a conduit to transmit info to organizational members.

3. Decisional role:

Managers initiate and design change. They allocate resources and negotiate on behalf of the organization. Here managers deal with various affairs such as, overseeing new projects, taking corrective measure in an unforeseen event and discuss issues and bargain with other units to gain advantages for their own unit.

These roles demand a deep understanding of human behavior in both individual and group forms, and so OB provides us with the means of tackling these issues with confidence. Understanding OB has never been more important for managers than it is today. In today’s world, the people of earth are much closer than before and managers need to deal with a vast array of diversities, such as,

•           Culture

•           Demography

•           Religion

•           Higher demand of customer satisfaction

•           Coping with rapid changes in technology

•           Balancing Stress related lifestyle of the workers

•           Ethical behavior

As a manager, the teachings of OB can significantly increase one’s personal sensibilities and outlook on these attributes;

1.         Working with people from different cultures:

What might seem motivating to a manager might not appeal to his workforce at all. Or a manager’s style of communication may be straightforward, but the workforce may find it threatening and uncomfortable. As a manager one must learn how to adapt his managerial style to their cultural, geographic and religious disparities.

2.         Workforce diversity:

Organizations are increasingly becoming a more heterogeneous mix of people in terms of gender, race, age, ethnicity and sexual orientation. No longer can these disparities and clichés be ignored, these people are in the real world educated and ready to work. So mangers must recognize the fact that they don’t leave their lifestyles, cultural values and perception at home, so we as managers must learn to accommodate this diverse group of people by addressing their different lifestyles, family needs and work styles.

3.         Customer Service:

Many an organization has failed because its employees failed to please its customers. Management needs to create a customer-responsive culture. OB can provide considerable guidance in guidance in helping managers create such cultures- cultures in which employees are friendlier and courteous, accessible, knowledgeable and prompt in responding to customer needs, in order to please the patron.

4.        Ethics:

Today’s manager needs to create an ethically healthy climate for his employees, where they can work productively and confront a minimal level of uncertainty regarding what constitutes right and wrong behavior. Organizational behavior is the path to understanding how elements of the work place fall into place. As a nascent manager one can develop the self with the help of these learning’s and partake in managerial roles confidently.


Answer 3 (B) Part

Every action and behaviour of an individual has some element of learning involved. Behaviour is something which can be publicly viewed, but there is also an unobservable, inner cognitive behaviour which will influence the individual. Thus, the outcome can take the form of desirable or undesirable behaviour. Of course, only desirable work behaviour can contribute towards achieving organisational goals. That is why, it is necessary on the part of the individual employee to learn periodically new knowledge and skills. Further, learning is a powerful incentive for many employees to stick to certain organisations. Learning has significant impact on individual behaviour as it influences abilities, role perceptions, and motivation. Along with its role in individual behaviour, learning is essential for knowledge management that enhances an organisation’s capacity to acquire, share, and utilise its resources in ways that improve its survival and success.

The concept of learning is very important for organisational behaviour. It has assumed tremendous significance because everything that we do in an organisation, some learning is definitely involved. The concept of learning can be used in many contexts. It refers to the process of acquiring the response adequately to a situation which may or may not have previously encountered. A widely accepted simple definition of ‘learning’ is any relatively permanent change in behaviour that occurs as a result of experience. 

As per this definition, one cannot see the process of learning but if there is a noticeable change in behaviour then it can be said that learning has taken place. This means we are actually seeing the changed behaviour in individuals as a result of learning. Thus, learning as a concept seems to be an abstract and a theoretical one and is not observable directly. It is also said that learning is a relatively permanent change in the frequency of occurrence of a specific individual behaviour. In an organisational setting, it is the work-set and organisational norms, which will act as objective bases for determining whether an employee’s behaviour is desirable or undesirable and whether he or she needs to learn and practise productive work behaviour. Thus, it is the process by which skills, knowledge, attitudes and behaviour are formed and developed as a result of education, training, socialisation and experience. 

Learning also occurs as a result of conditioning and restriction. A person is persuaded to adopt guidance or regulation or conformity and compliance based on each situational requirement. Moreover, people learn at different rates, times and stages during their life time. Of course, ultimately it is the individual’s own needs and drives, and rewards that enhance one’s potential and expertise, marketability along with increased esteem, and respect and status that will act as the motivational drive(s) in inducing the person to learn.

There are six important components of learning: 
1) Learning involves change, although the change may be for good or bad from an organisation’s point of view. 
2) Not all changes reflect learning. To constitute learning, change should be relatively permanent.
3) Learning is reflected in behaviour. A change in an individual’s thought process or attitudes, not accompanied by behaviour, is no learning. 
4) The change in behaviour should occur as a result of experience, practice, or training. 
5) The practice or experience must be reinforced in order for learning to occur. If reinforcement does not accompany the practice or experience, the behaviour will eventually disappear. 
6) Learning occurs throughout one’s life. 

When employees learn, they acquire both explicit and tacit knowledge. Explicit knowledge is organised and can be communicated from one person to another. Explicit knowledge can be written down and given to others. However, this is only a small portion of total knowledge. Majority of the people have tacit or implied knowledge. Tacit knowledge is the idea that one knows more than what he or she can tell. Tacit knowledge is embedded in our actions and ways of thinking, but is not clearly understood and therefore cannot be communicated explicitly. This knowledge is acquired through observation and direct experience. Most knowledge in organisations is tacit and one of the challenges in knowledge management is to make implicit knowledge explicit so that it may be stored and shared more easily.

The importance of learning was first put forward by a Chinese philosopher, Confucius (551-479 BC) in these words: “Without learning, the wise become foolish; by learning, the foolish become wise”. Learning refers to relatively permanent changes in behaviour occurring as a result of experience. The concept of learning organisation is not new; many authors have talked about it from others and their own past experiences. Probably, Garratt was the first to publish a book on the subject in 1987. But the concept was popularised by Senge when his famous book “The Fifth Discipline” was released in 1990. Senge’s book triggered a great deal of interest in the subject of learning organisations. A large number of publications appeared on the subject during the current decade.


A learning organisation: 
• Is an active philosophy; not merely an organisational system. 
• Believes that its only competitive advantage is learning. 
• Encourages people to learn to produce the results they desire. 
• Nurtures creative and innovative patterns of collective learning. 
• Develops fresh organisational capabilities all the time.

New ideas are essential if learning is to take place. Whatever their source, these ideas trigger organisational improvement. However, creating or acquiring new knowledge is not enough; what is more important is the successful application of knowledge in one’s own activities. Learning organisations are skilled at five main activities: 
1) Systematic Problem-Solving: 
- Learning and Behavioural Modification
- Relying on the scientific method rather than guesswork for diagnosing problems.
– Insisting on data rather than assumptions, as background for decision- making.
– Depending on simple statistical tools to organise data and draw inferences 

2) Experimentation:
– Systematic searching for and testing of new knowledge. Continuous improvement in new methods and technologies.
– Successful ongoing programmes to ensure a steady flow of new ideas, even if imported from outside the organisation.
– Demonstration of organisational capabilities by introducing self- managing teams and high level of worker autonomy. 

3) Learning from Past Experience:
– Companies must review their success and failures, assess them systematically and record lessons in a form that employees find open and accessible.

4) Learning from Others: 
– Sometimes, the most powerful insights come from one’s immediate outside environment.
– Even companies in completely different businesses can be fertile sources of ideas and catalysts for creative thinking.
– Best industry practices are to be uncovered, analysed, adopted and implemented.
– The greatest benefits come from studying practices; the way work gets done rather than results. 

5)   Transferring Knowledge:
– Knowledge must spread quickly and efficiently throughout the organisation.
– Make use of mechanisms such as written and oral communications, site visits and tours, personnel rotation programmes, education and training programmes for transferring knowledge.
– Transfer may be from division to division, department to department, or facility to facility; they may involve senior, middle, or first level managers.

Characteristics of Learning Organisation 

Some of the common operational practices of learning organisations dealing with people are openness, systematic thinking, creativity, awareness of personal and organisational values, empathy and sensitivity. Senge, who popularised the term learning organisation states that such organisations have the following five principles: 

1) Personal Mastery: Creating an organisational environment, which encourages all its members to develop themselves toward goals and purposes they choose. 

2) Mental Models: Reflecting upon, continually clarifying, and improving internal pictures of the world, and seeing how they shape our actions and decisions. 

3) Shared Vision: Building a sense of commitment in a group, by developing shared images of the future and guiding principles and practices. 

4) Team Learning: Transforming conversational and collective thinking skills, so that groups of people can reliably develop intelligence and ability greater than the sum of individual members’ talents. 

5) Systems Thinking: Thinking about, and a language for describing and understanding forces and interrelationships that shapes the behaviour of systems.  

These principles translate into the following three key practices that enable an organisation to promote and support continuous learning:

1) The ability to learn from each other
2) The ability to learn from personal experience 
3) The ability to learn from the system (that is, organisation successes and failures) 

A learning organisation is characterised by: 

Openness: The learning organisation has to be open to enquiry and tolerant of criticism and debate. 

Innovation: The learning organisation has an organic structure and culture which permits it to evolve rapidly. It has a deep skill base and capacity to deal internally with complexity and uncertainty. Strategic 

Orientation: The learning organisation cares both for its customer and  its employees.

Organisations of the future will not survive without becoming communities of learning. It is absolutely essential for organisations to learn from their environments, to continually adjust to new and changing data, and just as in the case with the individual, to learn how to learn from the uncertain and unpredictable future.


Answer 3(C) Part 

Although attitude is a common term which is very frequently used in our daily conversations, social psychologists define attitudes in a specific way. One of the pioneers of the field, Gordon Allport (1935) defined attitude as “mental and neural state of readiness, organized through experience, exerting a directive or dynamic influence upon the individual’s response to all objects and situations with which it is related.” There have been a number of attempts to define attitude in different expressions by different social psychologists, however the definition given by Allport has been still regarded as a comprehensive definition of attitude. The definition describes three different aspects of attitudes. 

Firstly, Allport refers attitudes as mental and neural states of readiness. This assumption implicitly asserts that attitudes are entirely personal affair and cannot be observed or measured directly by other people. Only the person who holds an attitude has access to it. Social psychological tools that claim to measure attitudes are in fact indirect measures of attitudes.

Secondly, the definition states that attitudes are acquired and organized through experience. This indicates that the genesis of the attitudes we form about various people, issues, events and situations lies in the experiences that we have in our families, neighbourhood, peer groups, work place and larger society. However, this assumption overemphasises the importance of social learning in attitude formation and underestimates the role of genetic factors in this process. 

Finally, the definition states that attitude exerts a directive or dynamic influence upon the individual’s response to all objects and situations with which it is related. Thus, attitudes are not merely feelings or beliefs that we have regarding people, issues, events and situations but they also guide and predict our future responses to those people, issues, events and situations.

Do attitudes really guide our behaviour? This has been a long debated issue for social psychologists. In one of the classic study, LaPiere (1934) visited to almost 250 hotels and restaurants of different places of the United States with a Chinese couple to see whether the couple was offered the service or not. After travelling for almost 2 years, he saw that the couple was denied for service by only one hotel and restaurant. However, in reply to a mailed questionnaire 92 per cent of the hotels and restaurants said that they would not offer service to a Chinese couple. This indicated that their behaviour, offering service to the Chinese couple, was inconsistent with their attitude expressed in reply to the questionnaire. Although surprising, the findings of LaPiere’s study suggested that attitudes do not always predict behaviour. Rather, there are some factors that affect the relationship between attitude and behaviour.

1. Attitude Specificity 
In many cases, our general attitudes fail to predict our specific behaviours. For example, we might, in general, like psychology as a discipline. However, when it comes to social psychology, one of its specific branches, we may not like it. Similarly, in LaPiere’s study the attitude reported in the questionnaire was regarding Chinese couple in general; however, the behaviour observed was toward a specific Chinese couple. Furthermore, despite of being prejudiced and having negative attitude toward a particular community in general, one may have friendship with one or more specific members of that community.

2. Attitude Accessibility 
Extending availability heuristic to the issue of behaviour-attitude link, it is suggested that the attitude which is more easily accessible more strongly influences the person’s behaviour (Fazio, 1995). The concept of automatic behaviour argues that the attitudes which are more readily available activate the behaviour consistent with the attitude by priming

3. Self Awareness 
People may hold two different types of self awareness: private self awareness and public self awareness (Echabe & Garate, 1994). It is suggested that people holding private self awareness act consistent with their own attitude; whereas, people holding public self awareness behave according to the attitude held by the majority of people present in social setting. In the other words, people with public self awareness act under majority pressure, an instance of conformity. For example, a person with private self awareness with positive attitude toward Swachchh Bharat Abhiyan will behave according to his or her attitude and consequently would not litter at public places. However, when the person is with his or her friends and the public self awareness of the person is activated, it is more likely that the person would behave consistent with the attitude of majority of the group.

4. Attitude Certainty 
Attitude certainty includes two components: attitude clarity, the extent to which person is clear about his or her attitude and attitude correctness, the extent to which person thinks that his or her attitude is correct, valid and appropriate to hold. Petrocelli, Tormala and Rucker (2007) have reported that the attitude high on the dimension of certainty is more likely to influence the individual’s behaviour and furthermore, less likely to be affected or changed by persuasive messages.

5 Attitude Strength 
Link between attitude and behaviour is stronger with stronger attitudes as compared to the weaker attitudes. Strength of a particular attitude is determined by three different factors that further affect the link between attitude and behaviour: processing of information regarding the attitude object, personal involvement or relevance with the issue pertaining to the attitude and direct experience.  Liberman and Chaiken (1996) have reported that when information pertaining to the attitude is processed more often, it results into enhanced attitude strength and stronger link between attitude and behaviour. Similarly, attitudes that are more relevant and important to the person and serve some purpose to the person’s life are stronger and more capable of predicting behaviour. Finally, the attitudes that are formed through direct experience become stronger and predict behaviour with greater consistency.


Answer 3 (D) Part 

People keep on observing the behaviours of others.  They model those behaviours which result in favourable outcomes.  At the same time, they avoid those behaviours that result in unfavourable outcomes.  Since the very beginning of childhood, people observe the behaviour of parents, teachers, achievers etc.  They try to model those behaviours which influence them most.  This theory advocates that the people learn their own behaviour themselves by observing the environment.  This theory focuses on cognitive process of learning where learners integrate the environmental factors and try to select the favourable outcome oriented behaviour.  Steven and Mary Annvon mentioned three features of social learning theory.  

These features are behavioural modeling, learning behaviour consequences and self-reinforcement.  Let us learn them in detail.

1. Behavioural Modeling :  Individual keeps on observing or interacting with a number of persons in the environment.  He/she observes behaviour and tries to model those behaviours which have favourable outcomes.  The modeling depends on the impact of particular behaviour on the individual.  For example, the oganisation develops the training programme of sales person based on role model.  Here, the high performer sales persons are rewarded in terms of extra bonus, praise, appreciation, recognition, etc. The role of high performers is highlighted by the organisation. The salesperson observes the behaviours of high performer and tries to model them. 

2. Learning Behaviour Consequences:  In the social learning theory, the cognitive process play very important role in learning the new behaviour.  In fact, individuals actively analyse the situations and learn those behaviours which result in favourable outcome.  Here the thought processing activities get activated. The person applies logic and evaluates the favourable and unfavourable consequences of the behaviours.  In this way, the desired behaviours may be activated by associating them with the favourable outcomes.  For example, if you complete job target, your boss appreciates you. You learn the consequences of completing the job in time which brings favourable outcome.

3. Self Reinforcement: This is the most important aspect of social learning theory.  When the individual analyses the impact of reinforcements on the behaviour and finds the positive outcome, he/she tries to learn positive outcome oriented behaviours.  Gradually he/she may develop self reinforcement technique for his own behaviour.  He may start setting his own goal and reinforcing himself after achieving the goal.  The development of self reinforcement strategy is the most challenging task before the organisation.  This provides freedom and control to the employees to manage his own behaviour.  Moreover, he/she recognizes his/her own ability to complete the job.

Social learning theory is very important in formulating the training programme of the organisation.  In the training programme, the importance of high performer, high achievers etc.  is highlighted.  These behaviours are also reinforced.  The employees observe their behaviours and also realize that these behaviours lead to success.  Thus, they are encouraged to model the favourable behaviours.

Robbins has identified four processes that determine the influence of a model on the behaviour of a person. They are discussed below: 

1. Attentional Processes: In order to learn from the behaviour of the model, people need to pay attention on the behaviour.  This means that observable behaviour must be designed in such a way that catches the attention of the people. 

2. Retention Process:  When the person observes others behaviour, the question arises how much he is going to retain?  The process of retention depends on the degree of influence people have on other’s behaviour. For example, people may easily retain the unique behaviour of the model. 

3. Motor Reproduction Process:  This is a technique of converting observed behaviour into action.  The person must learn the process of reproducing the observed behaviour.  Therefore, the ideal performance technique must be shown in such a manner that people learn to reproduce the performance. 

4. Reinforcement Processes:  People are encouraged to perform the observed behaviour if they are provided adequate incentives or rewards.  The reinforcement motivates them to act in that fashion.  The positive reinforcement is an important technique for enhancing the attention and retention process and improving the performance of the people.



Question No. 4 
Difference between the following:
(a) Maslow’s Need Hierarchy and Herzberg’s Two Factors Theories (b) Job enrichment and Job enlargement.
(c) Formal Communication and Informal Communication
(d) Autocratic leadership style and Democratic leadership style

Answer (A) Part 

Difference Between Maslow and Herzberg’s Theories of Motivation

Motivation implies the process of encouraging people to act in order to attain the desired objectives. It is something that stimulates an individual to keep doing the act already initiated. In this context, Abraham Maslow, a renowned psychologist, highlighted the elements of the theory of motivation, in a classic paper released in 1943. His theory is based on human needs and its fulfilment.

On the other hand, Frederick Herzberg is an American psychologist, who coined out the concept of job enrichment and two-factor theory on motivation based on rewards and incentives. He attempted to shed more light on the concept of work motivation.

Definition of Maslow’s Theory
Abraham Maslow was an Americal psychologist, who introduced the popular ‘Need hierarchy theory’ on motivation. The theory emphasizes the urge to satisfy needs of people working in the organization.

The theory is divided into two categories, i.e. growth needs and deficiency needs, which are further sub-classified into five needs, within each individual, represented in the shape of a pyramid. The theory is based on the premise that human needs are in proper sequence, wherein psychological need is at the bottom, and self-actualisation needs are at the top level. Other needs, i.e. safety needs, social needs and esteem needs are in the middle.




It infers that higher level needs cannot evolve until the lower level needs are satisfied. As the needs of human beings are unlimited, whenever one need is satisfied, another need take its place. Moreover, an unsatisfied need is the motivator which governs the behaviour of the individual.

Definition of Herzberg’s Theory

Frederick Herzberg was a behavioural scientist, who developed a theory in the year 1959 called ‘The two-factor theory on Motivation or Motivation-Hygiene Theory’.



Herzberg and his associates carried out interviews of 200 persons including engineers and accountants. In that survey, they were asked about the components of a job that make them happy or unhappy, and their answers made it clear that it was the working environment that causes unhappiness or dissatisfaction.
As per the theory, hygiene factors, are essential to keep a reasonable level of satisfaction among employees. Such factors do not actually result in satisfaction, but their absence causes dissatisfaction, that is why, they are known as dissatisfiers. Secondly, motivational factors are inherent to the job, and so the increase in these factors will lead to the rise in the satisfaction level, while the decrease does not cause dissatisfaction in employees.

Key Difference Between Maslow and Herzberg’s Theory of Motivation

The basic points of difference between Maslow and Herzberg’s theory of motivation can be summed up as follows:

1. Maslow’s Theory is a general theory of motivation which expresses that the urge to satisfy needs is the principle variable in motivation. In contrast, Herzberg’s Theory on motivation reveals that there are some variables existing at the workplace that results in job satisfaction or dissatisfaction.

2. Maslow’s theory is descriptive, whereas the theory propounded by Herzberg is simple and prescriptive.

3. The basis of Maslow’s theory is human needs and their satisfaction. On the other hand, the Herzberg’s theory relies on reward and recognition.

4. In Maslow’s theory, there is a proper sequence of needs from lower to higher. Conversely, no such sequence exists in the case of Herzberg’s theory.

5. Maslow’s theory states that unsatisfied needs of an individual act as the stimulator. As against, Herberg’s theory reveals that gratified needs govern the behaviour and performance of an individual.
The needs of an individual are divided into two categories i.e. survival/deficiency needs and growth needs as per Maslow. On the contrary, in Herzberg’s model, the needs of an individual are classified into Hygiene and motivator factors.

6. In Maslow’s theory, any unsatisfied need of an individual serves as the motivator. Unlike in the case of Herzberg, only higher level needs are counted as the motivator.


Conclusion
The two models developed by the two experts aims at simplifying the motivational process which proved that motivation is an important factor to improve the performance level of employees. Herzberg’s theory is an addition to the Maslow’s theory. These are not contradictory but complementary to one another.

Answer (B) Part 

Difference Between Job Enlargement and Job Enrichment

Once job analysis is completed, it is followed by job design which involves continuous eforts in organizing activities or tasks, duties and responsibilities into work unit, to achieve the objectives. There are five approaches to job design, which are job rotation, job engineering, job enlargement, job enrichment, and socio-technical system. Two of these approaches which are most commonly juxtaposed are job enlargement and job enrichment. The former refers to the increase in the number of tasks performed by an employee at the same job.

On the other hand, the latter refers to adding certain stimulators to the job so as to make it rewarding. A job is said to be enriched when the incumbent has the power to make decisions and plans.

Definition of Job Enlargement

Job Enlargement means to increase the tasks of an employee performed by him in a single job. It is an attempt of management to decrease the monotony of the repetitive task. Under this technique, few tasks are added to the existing job which is similar in nature.



In this way, variety in the job is added, and it will become more interesting for the job holders. There are some advantages of job enlargement which are indicated below:

It increases the degree of satisfaction in workers because when the job is enlarged, one employee is assigned the whole or the maximum part of the project. In this way, their contribution to that particular project is appreciated.
In job enlargement, both the physical and mental abilities of a worker are utilized. However, the jobs should be enlarged to a limited extent, i.e. up to the capacity of the employee. It should not create pressure and frustration in an employee.
It increases the task variety that reduces boredom in performing the job.
With the introduction of a new task in the same job, workers may require additional training to perform the task. It may also happen that the worker productivity will fall after the implementation of new system. Further, the employee may demand increment in their pay for the increase in their workload.

Definition of Job Enrichment

Job Enrichment is a job design strategy, applied to motivate the employees by delegating them extra responsibilities to make it more rewarding. In short, we can say that job enrichment means to upgrade the quality of a job and to make it more exciting, challenging and creative.




The job holder is given responsibilities and power to plan, control and make important decisions. The requirement of supervision will now be less or it can also be said that the worker himself will perform the tasks of a supervisor.

The concept of job enrichment was first proposed by an American psychologist Fredrick Herzberg in 1968. The salient features of job enrichment are discussed with the help of the following figure:



Job Enrichment helps to improve the efficiency of the worker along with raising their level of satisfaction. There are more responsibilities, diversity of tasks, autonomy and growth possibilities in an enriched job as compared to a normal job.

Key Differences Between Job Enlargement and Job Enrichment

The major differences between job enlargement and job enrichment are mentioned as under:

1. A job design strategy in which the number of tasks performed by a single job is increased is known as Job Enlargement. Job Enrichment is defined as a motivational tool, used by the management in which the range of activities performed by a single job is increased to make it better than before.

2. Job Enlargement involves quantitatively extending the scope of activities carried out by the job whereas in Job Enrichment improvements are made in the existing job to increase its quality.

3. Job Enlargement reduces boredom and monotony while performing a single task, on and on. Conversely, Job Enrichment makes the job more challenging, exciting as well as creative.

4. Job Enlargement does not require additional skills but job enrichment does.

5. In job enlargement, the expansion of tasks is made horizontally, i.e. at the same level. On the other hand, job enrichment involves vertical expansion of activities like controlling and doing the task.

6. Job enlargement requires more supervision as compared to job enrichment.

7. The consequence of introducing job enlargement is not always positive, but job enrichment will produce positive outcomes.

8. Job Enlargement makes employees feel more responsible and valuable, while Job Enrichment brings satisfaction and efficiency in employees.


Conclusion

Both job enlargement and job enrichment are regarded as motivational tools for the employees, used by the management. However, employees find job enrichment is a far better tool than job enlargement. Job Enrichment gives planning, controlling and decision-making powers to the job holder. It helps them to grow and develop. As opposed to job enlargement, which is just a tactic of management to increase the workload of existing employees. The job holders feel satisfied that his tasks have been extended, without knowing that his role and responsibilities are increased.


Answer (C) Part 

Communication plays an essential role in our lives. One needs to have good communication skills in order to excel in any field. On an organizational level, communication is of utmost importance. People exchange their ideas, opinions, perceptions with one another through communication. Communication can be oral/ verbal, or written. Oral communication includes speaking out, talking to each other regarding different things, while written communication includes writing down or penning a letter in order to communicate with the person. Sign language is also a part of communication wherein people use various signs and symbols in order to converse with other people. Body language, eye contact, expressions, etc., are important aspects of communication. So, today we will be discussing two significant types of communication, i.e., formal communication and informal communication. Let us begin by understanding the primary meaning of the same.

Formal Communication
Formal communication is defined as the communication in which the information is reached through proper channels or routes. It is also called official communication. The main aim of this communication is to properly converse and making sure that the information has reached correctly. This communication is considered as an effective communication mode as it saves time through its systematic flow of communication. Examples of formal communication include reports, post descriptions, work command, information related to sales and inventory, etc. There are four kinds of formal communication, i.e., upward communication, downward communication, vertical communication, and horizontal communication. The superior and the subordinate conversation comes under formal communication. One of the major disadvantages of formal communication is that rules and regulations are very rigid.
More importance is given to the rules; instead of the person. It results in low cordiality among relationships between the superior and subordinates.

Informal Communication
Informal communication is defined as communication that does not undertake formal methods to communicate. People/ subordinates do not follow the rigid rules of the organization. People converse freely without any bondage. On an organizational level, informal communication is the spontaneous kind of communication in which the subordinates and the superior can talk freely. There are no official rules, systems, or guidelines to communicate. Talking to your friend or family is a common example of informal communication. One of the major advantages of informal communication is that it is very flexible. There is no rigidity or any kind of formality to hinder the communication. Grapevine communication is a significant kind of informal communication. The disadvantage of this kind of communication is that rumors or misinformation spread at a rapid pace. Now, let us look at some of the differences between formal and informal communication.


So, these are some of the significant differences between formal and informal communication. Both kinds of communication are practiced by several organizations. The main goal of this is to meet the organization's and personal objectives.


Answer (D) Part

Difference Between Autocratic and Democratic Leadership

Leadership is a skill, which requires a person, to influence the subordinates to work voluntarily, and stimulating them to put their efforts, in achieving the goals of the organisation. Based on the objectives and the subordinates, the organisation can choose from different leadership styles. Autocratic leadership also called as monothetic leadership, is one of the styles, which encompasses centralization of the decision making power.

In autocratic leadership, the leader directs the subordinates regarding what is to be done and how is to be done. On the other extreme, the Democratic leadership is one that gives the subordinates equal chance of participating in the decision-making process as to what is to be done and how it is to be done.

Definition of Autocratic Leadership

Autocratic Leadership, or otherwise called as authoritarian leadership, is a leadership style adopted by the management, involving one man control over all managerial decisions of the organisation, without consulting with the subordinates. Under autocratic leadership, centralization of power exists, that lies in the hands of the leader, and so there is marginal input from the group members. Thus, all the decisions regarding the policies and procedures are taken by the leader himself/herself.


The autocratic leader dominates the entire group of subordinates, through coercion and command. The subordinates are supposed to follow the orders given by the leader unquestioningly.

It best suits the organisations where quick decision making is required. Further, when the subordinates are not much educated and experienced, autocratic leadership is appropriate.

Definition of Democratic Leadership

The leadership style which involves the considerable amount of participation of the employees in the decision-making process and organisation’s management is known as participative or democratic management. The suggestions and opinions of the subordinates are given importance. Indeed they are frequently consulted, on different matters.

Here, the leaders consider the opinion of the group and work accordingly. Moreover, the employees are informed about every matter which affects them.

There exist an open-end communication, through which the subordinates can communicate directly with the other members of the organisation, be it top level or bottom level. Democratic leadership encourages freedom of expression, independent thinking and participative decision making.

Key Differences Between Autocratic and Democratic Leadership

The difference between autocratic and democratic leadership can be drawn clearly on the following grounds:

1. Autocratic leadership can be defined as a leadership style, wherein a clear line of demarcation between leader and follower exist, as the leader has got the absolute power of commanding and decision making. On the other hand, a leadership style in which the leader values the opinions and suggestions of the followers, but retains the final decision-making power in his/her hands is known as democratic leadership.
2. There is centralization of powers in case of autocratic leadership, whereas the authority is delegated to the group members in democratic leadership.
3. Autocratic leadership is task oriented that gives more emphasis on the completion of the task successfully. As against, the Democratic leadership is relation oriented, which aims at improving the superior-subordinate relationship, by sharing powers with the group members.
4. The idea of autocratic leadership is derived from McGregor’s Theory X on motivation. On the contrary, democratic leadership is conceived from McGregor’s Theory Y on motivation.
5. High level of control is present in autocratic leadership, whereas democratic leadership involves the low level of control.
6. There is a freedom of expression and independence in thinking, in democratic leadership, which is not in the case of autocratic leadership.
7. Autocratic leadership is best suited when the followers or group members are not so educated and skilled, but at the same time, they are obedient. As against, the Democratic leadership is appropriate when the group members are experienced, qualified and professional.


Conclusion

When it comes to effectiveness, democratic leadership is a step ahead than autocratic leadership.
One can make a choice between the two leadership styles, considering the immediate goal and subordinates. When the immediate goal of the concern is increase in output and subordinate’s need for independence is low, autocratic leadership style proves better. However, the immediate goal tends to be job satisfaction as well as the subordinates require the greater degree of independence, democratic leadership style is best.

Sunday, 30 October 2022

All Questions - MCO-01 - ORGANISATION THEORY AND BEHAVIOUR - Masters of Commerce (Mcom) - First Semester 2022-2023

Solutions to Assignments

        MCO-01 - ORGANISATION THEORY AND BEHAVIOUR

                    Master of Commerce (Mcom) - First Semester


Question No. 1. 

What are various principles of management? How are modern organization different from typical classical organizations, in terms of practices of various principles of management?

An organisation is a coordinated social entity, grouped together and interact for the achievement of the common goal. It refers to the process of identification and grouping of activities, defining and establishing the authority responsibility relationship and determining the manner in which the organisational activities are interrelated. Thus the organisation consists of a group of people working together for the achievement of the organisational goal. Various theories have been propounded which explain the organisation in terms of closed, open and dynamic system.

The principles of organisation are guidelines for planning an efficient organisation structure. Let us discuss the important principles of organisation : 

Unity of Objectives : An enterprise strives to accomplish certain objectives. The organisation and every part of it should be directed towards the attainment of objectives. Every member of the organisation should be familiar with its goals and objectives. There must be unity of objective so that all efforts can be concentrated on the set goals. The principle requires objectives to be clearly formulated and well understood. 

Division of Work and Specialisation : The entire work in the organisation should be divided into various parts so that every individual is confined to the performance of a single job. This facilitates specialisation which in turn leads to efficiency and quality. However, each area of specialisation must be interrelated to the total integrated system by means of coordination of all activities of all departments. 

Definition of Jobs : Every position in the organisation should be clearly defined in relation to other positions in the organisation. The duties and responsibilities assigned to every position and its relationship with other positions should be so defined that there is no overlapping of functions. 

Separation of Line and Staff Functions : Whenever possible, line functions should be separated from staff activities. Line functions are those which accomplish the main objectives of the company. In many manufacturing companies, the manufacturing and sales departments are considered to be accomplishing the main objectives of the business and so are called the line functions. Other functions like personnel, plant maintenance, financing and legal are considered as staff functions. 

Chain of Command or Scalar Principle : There must be clear lines of authority running from the top to the bottom of the organisation. Authority is the right to decide, direct and coordinate. The organisation structure should facilitate delegation of authority. Clarity is achieved through delegation by steps or levels from the top position to the operating level. From the chief executive, a line of authority may proceed to departmental managers, to supervisors or foremen and finally to workers. This chain of command is also known as scalar principle of organisation. 

Parity of Authority and Responsibility or Principle of Correspondence : Responsibility should always be coupled with corresponding authority. Each subordinate must have sufficient authority to discharge the responsibility entrusted to him. This principle suggests that if a plant manager in a multiplant organisation is held accountable for all activities in his plant, he should not be subject to seek orders from company headquarters for his day to day activities. 

Unity of Command : No one in the organisation should report to more than one line supervisor. Everyone in the organisation should know to whom he reports and who reports to him. Stated simply, everyone should have only one boss. Receiving directions from several supervisors may result in confusion, chaos, conflicts and lack of action. 

Unity of Direction : According to this principle a group of activities that have a common goal should be managed by one person. There should be one head and one plan for a common objective of different activities. This facilitates smooth progression towards the achievements of overall organisational goals. 

Exception Principle : This principle suggests that higher level managers should attend to exceptional matters only. All routine decisions should be taken at lower level, whereas problems involving unusual matters and policy decisions should be referred to higher levels. 

Span of Supervision : The term ‘span of supervision’ means the number of persons a manager or a supervisor can direct. No manager should be required to supervise more subordinates than he can effectively manage within the limits of available time and ability. The exact number may vary according to the nature of the job and the frequency of intensity of supervision needed. 

Principle of Balance : There should be proper balance between various parts of the organisation and no function should be given undue importance at the cost of others. Balance should be maintained also between centralisation and decentralisation, span of supervision and lines of communication, and authority allocated to department and personnel at various levels. 

Communication : A good communication network is essential to achieve the objectives of an organisation. No doubt the line of authority provides channels of communication downward and upward, still some blocks in communication occur in many organisation. The confidence of superior in his subordinates and two-way communication are the factors that unite an organisation into an effectively operating system. 

Flexibility : The organisation structure should be flexible so that it can be easily and economically adopted to the changes in the nature of business as well as technological innovations. Flexibility of organisation structure ensures the ability to change with the environment without disrupting the basic design. 

Continuity : Change is the law of nature. Many changes take place outside the organisation. These changes must be reflected in the organisation. For this purpose the form of organisation structure must be able to serve the enterprise to attain its objective for a long period of time.

Differences between traditional and modern organization structures

The following list demonstrates how traditional and modern organizational structures differ from one another:

Decision-making
In a traditional organizational structure, the decision-making power is highest at the top and reduces as it moves down the chart. The CEO has the most decision-making power and may delegate some decisions to their department heads, who may then turn some decisions over to their team supervisors. In this structure, employees have little decision-making power and instead receive instructions from their supervisors. Having power centralized amongst a few members of the organization can be beneficial because it provides clear organization-wide messages about goals and expectations, eliminating the potential for confusion.

A modern organizational structure, however, does not use that system of centralized power. Instead, non-management employees often can determine what projects they want to work on and the methods they use to complete them. In some situations, managerial staff may even collaborate with employees or take their feedback on decisions made at the company. This method helps empower employees by making their voices and ideas heard at the company. Because employees have more decision-making power in a modern organizational structure, they can also proactively determine when and how to help other teams on projects rather than waiting for instructions from their supervisor to do so.

Communication
Due to the hierarchical nature of a traditional organization structure, the individuals at the highest level of management may have little communication with employees who are not their direct subordinates. For example, information from upper management may get disseminated through emails, newsletters or department heads.

A modern organizational structure has fewer departmental boundaries, which enables faster and easier communication methods. They may employ the use of instant messaging apps or software that allows everyone in the organization to communicate with one another. And in a flat organizational structure, for example, there is no middle management, so employees have more opportunities to speak directly to higher-level managers.

Teamwork
Businesses that follow the traditional organizational structure divide their employees into departments or divisions depending on their roles. As a result, employees from different departments may have few chances to work with one another. The focus on their specific role also enables them to gain significant knowledge and experience, potentially making them experts in their field. However, because they only perform their particular job and work with colleagues performing similar tasks, it may limit their opportunities to stretch their abilities and learn more about other aspects of the business.

Businesses with modern organizational structures promote the ideas of teamwork and collaboration, enabling employees from different areas to work together. Pulling in resources can help solve problems or reach goals more quickly. These teams often have more autonomy than those in traditional structures, who must wait for instructions from their supervisor on how to complete tasks or projects. This system can help build relationships throughout the company, as employees realize they need to rely on one another, no matter what line of business they are in, to reach company goals.

Flexibility
Employees in traditional organizational structures have set roles and responsibilities that they fulfill. Organizations in stable business environments benefit from this structure because employees know how to complete their job and meet the typical challenges associated with it. If the nature of the organization's business rarely changes, then these set roles can make work more productive and efficient. Due to the more rigid nature of these organizations, it may be difficult for them to adapt to dynamic environments, or they may be slower to meet unexpected challenges.

Employees in modern organizational structures have more flexibility in their responsibilities, which benefits organizations in more dynamic environments. Having that flexibility enables employees to easily collaborate across departments to solve challenges. These employees also gain the opportunity to learn new things by working on projects or teams of their choosing.


Question No. 2. 
(a) What do you mean by organizational behaviours? Explain meaning and scope of organizational behaviour. 
(b) What is effective communication? Discuss the significance of communication in an organization. 

(a) Part 

In a simple term organisational behaviour refers to the behaviour of persons in an organisation. Everybody wants to understand others behaviour. Understanding others behaviour help the persons to influence them. As you must be aware that human behaviour is guided by the internal and external forces. The analysis of these forces provides an insight for understanding the behaviour. Moreover, managers have been grappling with the idea of the channelisation of human energy towards the attainment of the organisational goals. The understanding of human behaviour play very important role in this endeavour as well. Thus the study of organisational behaviour provides guidelines for influencing the behaviour of the persons in the organisation. In this unit, you will learn the concept, genesis, needs and goals of the organisational behaviour.
Organisation is a place where two or more people work together in a structured way to achieve a specific goal or set of goals. Goals are fundamental elements of organisations. According to Gary Johns, organisations are social interventions for accomplishing goals through group efforts. Various environmental forces influence organisations. There are two types of environmental forces: direct and indirect. Some of the main direct forces are: customers, suppliers, competitors, labour market, and regulatory agencies. Some of the main indirect forces are: economic, technological, socio cultural, political, and international. Behaviour is anything that the human does. Behaviour is response to stimulation that can be observed, thus it is any response or reaction of an individual. The basic unit of behaviour is activity. According to Luthans, in understanding the variable it is extremely important to separate the actual behaviour events from the outcomes of the events. Specific observable behavioural events and their patterns provide useful data in order to analyze the interaction, which precedes the behaviour and the consequences that follow the behaviour. Running a large company, or even a small one, is no easy task. The field of Organisational Behaviour provides many helpful insights into understanding the complexities of people’s behaviour on the job. Organisational Behaviour is the study and application of knowledge about how people act within organisations. The key elements in an organisation are: people, structure, technology, and external environment in which the organisation operates. When people join together in an organisation to accomplish an objective, some kind of structure is required. People also use technology to get the job done. So there is an interaction of people, structure, and technology. In addition, these elements are influenced by the external environment, and they influence it. According to Keith Davis, Organisational Behaviour is an academic discipline concerned with understanding and describing human behaviour in an organisational environment. It seeks to shed light on the whole complex human factor in organisations by identifying causes and effects of that behaviour. According to Joe Kelly, Organisational Behaviour is the systematic study of the nature of organisations: how they begin, grow, and develop, and their effect on individual members, constituent groups, other organisations, and large institutions. According to Luthans, Organisational Behaviour is directly concerned with the understanding, prediction, and control of human behaviour in organisations. According to Robbins, Organisational Behaviour is a field of study that investigates the impact that individuals, groups, and structure have on behaviour within organisations for the purpose of applying such knowledge towards improving an organisation’s effectiveness.According to Baron and Greenberg, Organisational Behaviour is the field that seeks knowledge of behaviour in organisational settings by systematically studying individual, group, and organisational processes.

On the basis of definitions stated and various other definitions, we can draw following conclusions related to nature and scope of Organisational Behaviour: 

• Interdisciplinary Approach: Organisational Behaviour integrates knowledge from various relevant disciplines. This issue will be clear to you after reading the section on genesis of Organisational Behaviour in this unit. 

• An Applied Science: Organisational Behaviour is oriented towards understanding the forces that affect behaviour so that their affects may be predicted and guided towards effective functioning of organisation. This issue will be clearer to you after reading the section on goals of Organisational Behaviour in this section. 

• Behavioural Approach to Management: Organisational Behaviour is directly connected with the human side of management, but it is not the whole of management. Organisational Behaviour is related with the conceptual and human dimensions of management. 

• Concern with Environment: Organisational Behaviour is concerned with issues like compatibility with environment e.g. person-culture fit, cross-cultural management etc. 

• Scientific Method: Organisational Behaviour follows the scientific method and makes use of logical theory in its investigation and in answering the research questions. It is empirical, interpretive, critical and creative science. 

• Contingency Approach: There are very few absolutes in Organisational Behaviour. The approach is directed towards developing managerial actions that are most appropriate for a specific situation. 

• A Systems Approach: Organisational Behaviour is a systematic vision as it takes into account all the variables affecting organisational functioning. 

• Value Centred : Organisational Behaviour is a value-centred science. 

• Utilizes two Kinds of Logic: It utilizes both objective and subjective logic. Objectivity is concerned with reaching a fact through empirical analyses. Subjectivity is concerned with deciding about an issue through intuition, common sense, experiences, gut feeling, metaphors, learning from stories and cases, persuasive literature etc. 

SCOPE

Behavioural Science or Organisational Behaviour is not an elemental subject, rather than it is like a compound subject, with integrated weaving of various disciplines. In modern terminology, Organisational Behaviour is an interdisciplinary approach to the study of human behaviour in organisations. The study of behaviour can be viewed in terms of various main disciplines. All disciplines have made an important contribution to the field of Organisational Behaviour. These disciplines are:

Psychology: Psychology is broadly speaking concerned with the study of human behaviour, with traits of the individual and membership of small social groups. The main focus of attention is on the individual as a whole person. Organisational Behaviour learns a great deal in issues like personality, perception, emotions, attitude, learning, values, motivation, and job satisfaction etc. from the field of psychology. 

Sociology: Sociologists are more concerned with the study of social behaviour, relationships among social groups and societies, and the maintenance of order. The main focus of attention is on the social system. Organisational Behaviour has developed by taking many issues from sociology. Some of them are: group dynamics, communication, leadership, organisational structures, formal and informal organisations, organisational change and development etc. 

Social Psychology: Social Psychology examines interpersonal behaviour. The social psychologists are concerned with intergroup collaboration, group decision making, effect of change on individual, individual’s responsiveness to change, and integration of individual needs with group activities. 

Anthropology: Anthropologists are more concerned with the science of mankind and the study of human behaviour as a whole. Issues like, individual culture, organisational culture, organisational environment, comparative values, comparative attitudes, cross-cultural analysis, are common to the fields of anthropology and OB. As far as OB is concerned, one of the main issues demanding attention is the cultural system, the beliefs, customs, ideas and values within a group or society, and the comparison of behaviour among different cultures. People learn to depend on their culture to give them security and stability, and they can suffer adverse reactions to unfamiliar environments. 

Political Science: Political Science as a subject has many ingredients, which directly affect human behaviour in organisations since politics dominates every organisation to some extent. Many themes of interest directly related to OB are, power and politics, networking, political manipulation, conflict resolution, coalition, and self-interest enhancement. 

Economics: Economic environment influences organisational climate. OB has learned a great deal from such economic factors as labour market dynamics, cost-benefit analysis, marginal utility analysis, human resource planning, forecasting, and decision making. 

Engineering: Industrial Engineering area has contributed a great deal in the area of man-machine relationship through time and motion study, work measurement, work flow analysis, job design, and compensation management. Each of these areas has some impact on OB. 

Medicines: Medicines is one of the newest fields which is now being related to the field of OB. Issues like work related stress, tension and depression are common to both: the area of medicine, and OB. 

Semantics: Semantics helps in the study of communications within the organisation. Misunderstood communication and lack of communication lead to many behaviour related problems in the organisation. Accordingly, adequate and effective communication is very important for organisational effectiveness.


(b) part

The communication can be defined as the process through which two and more persons exchange ideas and develop understanding. Two aspects are important in communication, first is the transmission of ideas, feelings, facts, etc. It implies that there must be a receiver if communication is to occur. The sender of message must consider the receiver while structuring his message from a technical standpoint as well as in delivering it. When the receiver is not considered, there is either no response or there may be wrong response. Secondly, it emphasizes the understanding element in the communication. Sharing of understanding would be possible only when the person, to whom the message is meant, understands it in the same sense in which the sender of the message wants him to understand.

Communication is essentially a two-way process. It is not completed unless the receiver of the message has understood the message and his reaction or response is known to the sender of the message. The basic purpose of communication is to create mutual understanding and unity of commonness of purpose. It may involve exchange of facts by way of information, thought, or ideas, opinion or point of view, feeling or emotions. Communication is a continuous process in management. No manager can avoid communicating with his superior and subordinates in the course of his activities. Inadequate or ineffective communication is often responsible for making managerial performance unsatisfactory. Managers at all levels and in all departments must communicate to keep the wheels of operations running smoothly. Thus, communication pervades the entire organisation.

The characteristics of communication in a business enterprise may be outlined as follows : 

• It is a cooperative process involving two parties, one who transmits and one who receives the message. 

• The respective parties to a communication must have the ability to convey and listen to what his counterpart has to communicate. 

• Communication includes sending the message as well as receiving the reaction or response to the message and therefore is a two-way traffic. 

• The response to a communication is as essential as the initial communication because response indicates the impact of the communication. 

• The message to be communicated may be conveyed verbally, in writing, by means of signs, gestures or symbols. More than one means may be adopted to make the communication effective. 

• The purpose of communication is that of passing information and understanding, to bring about commonness of purpose, interest and efforts. 

• Communication is a continuous process for effectiveness and efficiency of on going operations, planning and policy making.

• Communication may flow vertically upward or downward between superiors and subordinates, horizontally between persons occupying similar ranks in different departments, as well as diagonally between persons at different levels and in different parts of the organisation. Hence, communication flows pervade the entire organisation.

SIGNIFICANCE OF COMMUNICATION IN AN ORGANISATION

Effective communication is a basic prerequisite for the attainment of organisational goals. No organisation, no group can exist without communication. Coordination of work is impossible and the organisation will collapse for lack of communication. Cooperation also becomes impossible because people cannot communicate their needs and feelings to others. Every act of communication influences the organisation in some way or other. It is a thread that holds the various interdependent parts of an organisation together. When it stops, organisation activity ceases to exist. Even a great idea becomes until it is transmitted and understood by others.

When communication is effective, it tends to encourage better performance and job satisfaction. People understand their jobs better and feel more involved. It is through effective communication that an executive ultimately gets work done by others. Therefore, a successful executive must know the art of communication. Moreover, communication is a means whereby the employee can be properly motivated to execute company plans enthusiastically. It is the means by which behaviour is modified, change is effected and goals are achieved.

The first executive function is to develop and maintain a system of effective communication. It is commonly said that what nerves are to human organism, communications are to an industrial system. Since management has been described as getting works done by people, it is necessary to communicate what the management wishes to accomplish by the various tasks which the organisation has undertaken. Communication is also an intra management problem. It is the force that binds the people of an organisation together. Through communication they can attain a common viewpoint and understand and cooperate to accomplish organisational objectives. Good communication presupposes a two-way flow of information from the top down and from the bottom up. It can be compared to a mighty river on the banks of which business life is built.

McGregor sees all communication as a major factor in influencing others. All social interactions involve communication. In organisation communication is a two-way traffic whereby objectives, orders and policies are transmitted downward and desires and dis-satisfactions are transmitted upward. A successful executive should have the ability to receive, analyse and transmit information. Thus, effective communication is an important skill of management.

Communication is the link between knowledge and information. Possession of knowledge is of no use until it is converted into information. Hence, knowledge alone is not adequate for managerial success; what is required is knowledge plus ability to communicate accurately. The popular saying ‘knowledge is power’ should be modified to ‘applied knowledge is power’, and to apply it requires effective communication.

In organisation, communication transmits orders for work, aids in doing the work, buying raw materials and in advertising and selling the product. It is the means used for hire, fire, promote, praise, urge, censure, persuade and so on. Communication plays a major role in dealing with employer-employee relations problems, employee productivity, in short, with all human relations matters. Bad communication is often the root cause of many problems. Secrecy breeds rumours and hush-hush attitude breeds harmful rumours. As far as possible, management should supply all relevant information to employees. The employees of an organisation have great curiosity to know what the company is going to do with, say, computers or bonus or DAs. If the management does not provide information, the employees will concoct information through grapevine rumours, which may have damaging results for the company. In order to avoid such problems, it is the duty of the management to supply all the relevant information through appropriate media at the right time.

Communication is not confined solely to employees. Management must communicate with its customers, owners, the community as well as its prospective and present employees. But our discussion is restricted to interpersonal communication and the organisational communication process.


Communication is the process of transferring information and ideas from one person to another. Successful and effective communication aims at imparting ideas and making one self understand by others. Communication has occupied a pivotal place in the modern civilization and the success of any organisation/ venture depends on good communication. No managerial activity is possible without communication of some kind, and the major part of a manager’s working time is devoted to communicating. The true purpose of communication is to convey the right message, establishing coordination, development of managerial skill and to maintain good industrial relations by executing programmes and policies of the organisation. Communication is accomplished by continuous and dynamic process in which the sender encodes an idea, which is transmitted through a channel to a receiver who decodes the message and gains an understanding of the idea of the sender. The reverse process of feedback also follows the same pattern. During the entire process, the disturbance such as noise has been experienced at different stages, which can lead to distortion of the communication.




Question No. 3. 
Comment briefly on the following statement: 
(a) Personality is shaped by the physical structure of the body. 
(b) Stress is both physiological and psychological. 
(c) Job satisfaction has both positive and negative impacts. 
(d) Job design is essentially a strategy of human resource management. 

(a) Part 
Personality is the complex set of various factors. The general meaning of personality is the external appearance. However, mere external appearance does not determine the personality of an individual. A host of factors determines individuals’ personality. Interestingly personality is not developed spontaneously. It is developed over a period of time. A man is born with certain physical and mental qualities and the environment further shapes his or her personality. Several personality theories have been developed to provide an understanding of the personality of an individual.

Personality is an important aspect in understanding the human beings that are the most important resources of an organisation. They provide life to other resources for the accomplishment of goals and objectives. Human energy makes all the difference in organisations. Personality determines the human energy. It provides an opportunity to understand the individuals, properly direct their energy and motivate them in a proper manner. Personality is the study of the characteristic traits of an individual, the inter relations between them and the way in which a person responds and adjust to other people and situations. Gordon Allport defined personality as the dynamic organisation within the individual of those psychophysical systems that determine his unique adjustments to his environment. Kolasa defined personality as a broad, amorphous designation relating to fundamental approaches of persons to others and themselves. It is the study of the characteristic traits of an individual, relationships between these traits, and the way in which a person adjust to other people and situations. Stephen P. Robbins has defined personality as the sum total of ways in which an individual reacts and interacts with others.

Personality is an intangible concept. It is complex as it is related to the cognitive and psychological process. It is believed that a man is born with certain physical and mental qualities but the environment in which he is brought up shapes his personality. A number of factors determine the personality of individual i.e., biological factors, family factors, environmental factors and situational factors. Let us learn them in detail.

Biological Factors: Biological factors are related to human body. Three factors: heredity, brain and physical features are considered as relevant. They are explained below. 

i) Heredity: Heredity refers to those qualities transmitted by the parents to the next generation. These factors are determined at conception. Certain factors of personality inherited are : physical stature, facial attractiveness, gender, colour of skin, hair and eye balls, temperament, muscle composition, sensitivity, skills and abilities, intelligence, energy level and biological rhythms. 

ii) Brain: Brain is influenced by biological factors. Structure and composition of brain plays an important role in shaping personality. There are few empirical findings to state that the brain influences the personality. 

iii) Physical Features: The physical features and rate of maturation influence personality. The rate of maturity is related to the physical stature. It is believed that an individual’s external appearance has a tremendous effect on personality. For instance height, colour, facial attraction, muscle strength influences ones’ selfconcept.

Family Factors: The family factors are also important in determining personality of an individual. Three major factors: viz., the socialisation process, identification process and birth order influence the personality. 

i) Socialisation Process: Socialisation is a process of acquiring wide range of behaviour by an infant from the enormously wide range of behavioural potentialities that are open to him at birth. Those behaviour patterns are customary and acceptable according to the standards of his family and social groups. Members of the family compel the infant to conform to certain acceptable behaviour. 

ii) Identification Process: Shaping of personality starts from the time the identification process commences. Identification Process occurs when a person tries to identify himself with some person whom he feels ideal in the family. Normally a child tries to behave as his father or mother. 

iii) Birth Order: Birth order is another significant variable influencing the personality of an individual. For instance first born are likely to be more dependent, more rational, ambitious, hardworking, cooperative, and more prone to guilt, anxiety and are less aggressive. 

Environmental Factors: Environmental factors are those, which exists in and around the individual. They are social and cultural factors. Culture determines human decision-making, attitudes, independence: dependence, soberness: aggression, competition, co-operation and shyness. There are two vital aspects of culture. Firstly, conformity by the individual and secondly, acceptance by the larger group. Culture establishes norms, values and attitudes, which are enforced by different social groups. Individuals are compelled to behave in conformity to the culture established by the society. Thus, culture and society exert greater influence in shaping the personality of an individual.

Situational Factors: In recent years, the influence of situational factors on personality is increasingly recognised. Generally an individual’s personality is stable and consistent, it changes in different situations. A study conducted by Milgram suggested that actions of an individual are determined by the situation. He states that situation exerts an important influence on the individual. It exercises constraints and may provide push to the individual.

Thus it is clear from the above discussion that hosts of factors exert influence in shaping the personality of an individual. Therefore, one has to understand personality as a holistic system.


(b) Part
Stress is a psychological condition and body discomfort. Stress is a common phenomenon. Every individual experiences stress at some or other time. Employees experience stress in the process of meeting the targets and working for long hours. When the person experiences a constraint inhibiting the accomplishment of desire and demand for accomplishment, it leads to potential stress. Anxiety is converted into stress and ultimately it leads to job burnout. In fact for most of the time individuals are responsible for stress.

Stress is a state of discomfort experienced by an individual. Loss of emotional stability is the general expression of stress. It is generally apparent when the individual experiences a biological disorder. Stress has a positive association with the age, life styles, time constraints and the nature of occupation. Certain occupations are more prone to the stress than the others. For instance, drivers of vehicles, doctors, lawyers and managers are more likely to get stress than teacher, bankers and operating personnel. Individuals feel stress when the needs or desires are not accomplished in the normal expected ways. This is because of the natural constraints operated on the individuals. The more the intensity of the desire and greater is the uncertainty associated with the achievement of the goal, the greater is the degree of stress. Employees are working for longer hours, taking on the work once done by laid-off colleagues, meeting tighter deadlines and cutting back on expenses are some of the causes of stress. Combined to this with the double-income family demands of monthly mortgages, childcare issues and aging parents, and the result for many is anxiety, sleeplessness, irritability, and physical and mental deterioration. Perhaps these are the potential reasons for stress in the employees.

An individual experiences stress through psychological emotions and is disseminated through physiological breakdown or biological changes. However stress is not negative always. Stress has also positive consequences. The positive form of stress is known as eustress. The word taken from Greek language means good stress. Mild stress elevates body metabolic and biological rates. The increase in the metabolism leads to secretion of juices from body glands that will increase the inner drive for achievement. Achievement motivation comes from deep intention, mild tensions, inner urge, fire and feeling of restlessness to achieve objectives. Stress helps in the development of people too. In its mild form it enhances job performance, leads to excellence and provides impetus to work hard and perform better. Individuals involved in the discharge of professional oriented jobs, jobs involving creativity, challenge, interpersonal communications and certain managerial jobs, will be benefited by stress, which leads to positive performances. However, jobs involving physical effort do not get benefit out of stress. As indicated above mild levels of stress increases job performance. It stimulates body and increases reactivity. Thus, individuals perform tasks better and in a rapid way. Inverted-U relationship illustrates this phenomenon. Some positive consequences are: increased productivity, positive response to target, development of proper perception in the decision making, increased motivation and performance, increased adaptability to change and increased quality of job performance. For instance, employee experiencing a moderate stress of repetitiveness on the job finds new ways of discharging jobs. Thus, stress promotes creativity in the employees. However, in the modern organisations the negative consequences of stress are creating more problems. As pointed out by Schuler, Khan and Byosiyere, stress leads to high blood pressure, ulcer, cancer, accident proneness and irritation. Though there is no perfect association between stress and its consequences, stress itself demonstrates into physiological, psychological, behavioural, job and organisational consequences. The positive and negative consequences are discussed below:

Physiological Consequences: Stress influences the biological system of the human being. Certain visible forms of stress are increased blood pressure, proneness to heart disease, cancer, sweating, dry mouth, hot and cold flashes, frustration, anxiety, depression, increased level of cholesterol, ulcer, arthritis etc. Physical stress increases the body metabolic rate. This results into malfunctioning of internal gland and consequently the body disorder. This is felt in the form of increasing heart beating, increase in breathing rate and headache. This creates biological illness. The physical stress also creates psychological problems. In fact, physical stress and physiological disorders are interrelated. However, physical disorders and stress always need not associate positively. This is because of complexity of symptoms of physical stress and lack of objective measurement of impact of stress on bodily disorders.

Psychological Consequences: Psychological consequences are interrelated to biological consequences. They are invisible, but affect the employees’ job performance. Psychological stress creates a pressure on human brain. This is expressed in terms of certain psychological symptoms such as anger, anxiety, depression, nervousness, irritation, tension, boredom, aggressiveness, moodiness, hostility and poor concentration. Tensions, anxiety, and emotions lead to procrastination. Psychological stress produces interpersonal aggressions, misunderstanding in communication, poor interpersonal communication and low interpersonal attraction. This is demonstrated through aggressive actions like sabotage, increased interpersonal complaints, poor job performance, lowered self-esteem, increased resentment, low concentration on the job and increased dissatisfaction. Psychological stress produces harshness in the behaviour and may lead to assumption of authoritarian leadership style by the superior executive.



(c) Part
Job satisfaction is a psychological aspect. It is an expression of feeling about the job. Job satisfaction is an attitude. It is a permanent impression formed about the job. Employees interact with people and other resources while working with the job. In the process, they experience positive or negative feelings about the job context and content. The concept of job satisfaction has gained importance ever since the human relations approach has become popular.

Job satisfaction is an intangible variable. It consists of a complex number of variables, conditions, feelings and behavioural tendencies. Roberts Dictionary of Industrial Relations defined job satisfaction as those outward or inner manifestations which give the individual a sense of enjoyment or accomplishment in the performance of his work. According to Locke, job satisfaction is a pleasurable or positive emotional state resulting from the appraisal of one’s job or job experience. Andrew Brin stated Job satisfaction as the amount of pleasure or contentment associated with a job. Further, he stated that if one likes a job intensely he will experience high job satisfaction and if he dislikes the job intensely he will experience job dissatisfaction.

Job satisfaction is one of the most researched variables in the area of workplace psychology and has been associated with numerous ranging from leadership to job design. It is more of a journey, not a destination, as it applies to both employees and the employer. Job satisfaction is influenced or affected by various factors which are as follows:

Job satisfaction is known as a result of job performance and productivity. There exists a positive relationship between these variables. The consequences or effects of greater job satisfaction are as follows:

  • It increases efficiency and effectiveness at work.
  • It helps to reduce employee’s absenteeism.
  • It promotes harmonious employee’s relation.
  • It enhances organization’s productivity and employee’s satisfaction.
  • It helps to decrease employee’s turnover.
  • It helps to improve the image of the organization.
The impacts of low occupation fulfillment could be extensive and this issue is of sympathy toward little entrepreneurs and also expansive organizations. In the event that representatives are not content with their occupations, a few regions of their work are influenced and their conduct can additionally influence different workers.

Job Stress

When employees are not happy with their jobs, they are much more likely to experience and report stress on the job. Workers who are satisfied or happy at work are much less likely to report feeling stressed out by their job.

Poor Overall Morale
When one employee is miserable doing their job, all of the other employees they come into contact with are going to be affected by their attitude. If they see someone who is so obviously miserable, it will begin to color how they view their own jobs.

Lack of Productivity
Low job satisfaction, coupled with low employee morale equals a lack of productivity in the workplace. Again, we have basic human nature at work. When someone is unhappy, they don’t focus well and they don’t pay attention to their tasks.

High Employee Turnover Rates
Low job satisfaction also creates high turnover rates with employees. Sooner or later, the employee is going to quit so that they can find a job they actually enjoy doing. Many industries such as food service suffer from high turnover rates and the inability to retain qualified workers.


(d) Part

Organisations are created for attainment of goals. For this purpose, an organisation structure is created and jobs are designed to meet the goals. F. W. Taylor suggested that jobs should be designed based on scientific principles to attain higher productivity. However Human Relations approach has taken a different view and suggested that job design should provide human satisfaction. Research also revealed that employees performing properly designed jobs showed high motivation and satisfaction levels. Conversely poor job design kindles boredom, monotony, ambiguity, conflicts and the result is dissatisfaction. Thus, job design helps in directing human energy for organisational effectiveness. In addition, job design has an influence on employee’s behaviour and organisational behaviour. Moreover, job design changes with the change in internal and external factors. Organisational objectives, environmental factors, social aspects, employee skills, training, status, job expectations, and individual goals and objectives are some of the factors considered in the process of job design.

According to Taylor ‘job design is complete written instructions describing in detail the task to be accomplished. The task specifies what is to be done, how is it done and exact time allowed for doing it.’ Job design is making components and sub components of job clear, so that employee understands the goals of the job. The paradigm of job design has changed remarkably over years. Traditionally job design is viewed as designing standard procedures, clarifying specific job descriptions for increasing productivity and efficiency. The job design is viewed from the perspective of total quality management. The jobs are designed to involve innovation, empowerment, autonomy and teamwork. Thus, job design as a quality of work life is concerned with the product, process, tools and techniques, design, plant layout, work measurement, standard operating procedures, human process, machine interaction and other activities related to job performance.

Job design is essentially a strategy of human resource management. It has a number of potential benefits. They are: 

• Job design clarifies the tasks and roles. Thus, it avoids ambiguities in the performance of jobs. 

• Job design removes overlapping in responsibilities. This leads to rationalisation of tasks. Conflicts among personnel are avoided. 

• Job design allows proper placement of employees. Thus, an appropriate job fit may be achieved. 

• It allows operational control over work performance and results. 

• Job design allows incorporation of environmental changes in the job. 

• It provides flexibility. Thus, employees are prepared to accept changes without much resistance. 

• It inculcates work motivation. Job design allows managers to understand organisational behaviour. 

• Proper job design leads to better quality of work life among employees. 

• Job design relieves stress and improves performance and organisational effectiveness.





Question No. 4. 
Differentiate between the following: 
(a) Job enrichment and Job enlargement 
(b) Homogeneous groups and heterogeneous groups 
(c) Project organization and Matrix Organization 
(d) Approach approach conflict and approach avoidance conflict. 


(a) part
Job Enrichment

Job enrichment is vertical expansion of jobs. According to Hackman and Oldham, an enriched job organises tasks to allow the worker to do a complete activity, increases the employees freedom and independence, increases responsibility and provides feedback. Herzberg has suggested the concept of job enrichment. Fred Luthans defined that job enrichment is concerned with designing jobs that include a greater variety of work content; require a higher level of knowledge and skill; give workers more autonomy and responsibility in terms of planning, directing and controlling their own performance; and provide the opportunity for personal growth and a meaningful work experience.

The job should be designed to provide opportunity for achievement, recognition, responsibility, advancement and growth. The following are the characteristics of an enriched job. 
• Decision making power 
• Relationships 
• Opportunity for Learning 
• Freedom 
• Uniqueness 
• Resource Control 
• Communication 
• Achievement orientation 
• Responsibility 
• Accountability 
• Opportunity for personal growth and development 
• Feedback

Job enrichment is not a single time activity. It is a process containing certain activities. They are combining tasks, creating natural work units, establishing relationships among personnel, expanding job vertically and providing feed back channels. The advantages of job enrichment are: 

• Increase in quality and productivity 
• Enhanced motivation and job satisfaction 
• Development of additional skills 
• Less work load on employees 
• Enhanced creativity in employees 
• Increase in pay and perquisites 
• Decreased absenteeism and turnover 
• Less number of grievances 
• Optimum use of human energy 
• Increased social benefits due to increase in quality and productivity.

 Job Enlargement
Job enlargement refers to making the job with a variety of tasks. In the recent past, there has been an increase in the number and variety of jobs performed by the employees in the organisations. When the employee feels that the job he is currently performing is less challenging, oversimplified, lack diversity and less meaningful, the answer is perhaps job enlargement. Thus, Job enlargement is the horizontal expansion of jobs to include more variety of tasks within the scope of the job. For instance, a worker is assigned with the job of counting the finished products, finds it boring and repetitive; the job can be enlarged by including certain tasks connected to the job. They are checking the products before counting, packing and delivering the products at the finished goods warehouse. etc. The following are the potential benefits of job enlargement.

• Reduction in the Level of Boredom: Job enlargement provides scope of increasing the number of tasks performed by the employee. It reduces employee’s monotony. 
• Utilization of Skills: Job enlargement enhances the scope of use of employee’s skills and abilities. A feeling of proper utilisation of employee’s skills provides greater satisfaction and consequent motivation to the employees. 
• Quality and Efficiency: Job enlargement leads to increased efficiency of employees as they receive training to do all the newly added jobs. This results in the increase in the quality of production and the overall effectiveness. 
• Job Enjoyment: In an enlarged job, employee feels less fatigued. Employees try to enjoy the enlarged work because of the greater variety of the job tasks. 
• Feedback: Job enlargement provides for the feedback to the employee. Thus, he can know where he stands in the performance. This enables him to develop his career and provides right motivation.



(b) part







(c) part
Projectized Organization: Projectized Organizations are organized around projects for maximal project management effectiveness.
  • The Project Manager is given more authority and resources control
  • The Project Manager is responsible to the Sponsor and/or Senior Management
  • The Project Manager is usually a full-time role
  • Team members are usually co-located within the same office / virtually co-located to maximize communication effectiveness
  • There can be some functional units within organization, however, those units are having a supportive function only without authority over the project manager
Matrix Organization: Matrix Organizations are organizations with structures that carries a blend of the characteristics of functional and projectized organizations.
  • Matrix organizations can be classified as weak, balanced or strong based on the relative authority of the Functional Manager and Project Manager
  • If the “Project Manager” is given a role of more like “Project Co-ordinator” or “Project Expediter”, then the organization is considered “Weak Matrix”
  • If the “Project Manager” is given much more authority on resources and budget spending, the organization is considered “Strong Matrix”
  • The differentiations between Funcational Organization vs Weak Matrix and also Projectized Organization vs Strong Matrix are not very clear cut
Project Organisation Matrix Organisation and grid organisation are the same.Matrix organisation is combination of project organisation and the functional organisation. In it, authority flows vertically within functional departments, while authority of project managers flow horizontally crossing vertical lines.

(1) Built around specific projects-Matrix organisation is built around a specific projects. The charge
of the project is given to the project manager who has the necessary authority to complete the project
in accordance with the time cost, quality and other conditions communicated to him by the top
management.

(2) Personnel from various departments—The project manager draws personnel from various
functional departments. He assigns the work to the various functional groups. Upon completion of the
project, the functional groups return to their functional departments for reassignment to other projects.

(3) Different roles-The project and the functional manager have different roles. The project
manager exerts a general management view point with regard to his project. Each functional manager is
responsible for maintaining the integrity of his function. However, both the project and functional
managers are dependent on each other as they have to take several joint decisions in order to execute
the project. So there is proper coordination between the project and the functional groups

(4) Management by objectives—Management by project objectives is paramount to the way of
thinking and working in it.


(d) part

According to a group of psychologists, there are three categories of conflicts. These are approach-approach, which has two pleasing goals, approach-avoidance, which has both pleasant and unpleasant outcomes for the same goal, and avoidance-avoidance, which has two unpleasant goals.

The definition of approach-approach conflict is an inward battle encountered where an individual has to choose between two desirable options or goals. One of the most challenging things in life is decision-making. People encounter multiple things to choose from at given moments. Making a decision can be difficult because the options may be equally significant. Most situations can be emotionally conflicting. For example, when a person receives an invitation to two parties from two close friends on the same day and can only choose one, it leads to conflict.

'The approach-avoidance conflict definition can be summarized as a psychological conflict that arises when a goal is perceived as both desirable and undesirable. Someone may grapple with various advantages and disadvantages related to a decision that must be made. The conflict may lead to stress and indecision, including a period of back-and-forth thinking. Extreme uncertainty can plague the thinker in the aforementioned situation, as there are pros and cons for the end goal/decision. Stress may arise because someone has to accept that there will be an advantage they will miss out on no matter what choice is made. Approach-avoidance conflict is experienced by all people at some point, as weighing pros and cons of a situation are common and part of the decision-making process.

There are three types of conflicts according to psychologists, which include approach-approach, avoidance-avoidance, and approach-avoidance. Approach-avoidance got its name because a person weighs both the advantages and disadvantages of the end goal/decision and goes back and forth between the two before reaching a decision point. They are approaching and avoiding the potential end goal until a decision is made. The approach-approach conflict is characterized by two positives that one must choose between, such as which movie to see or car to buy. An avoidance-avoidance conflict occurs when someone has to choose between two undesirable things, such as telling someone an uncomfortable truth, or living with a lie.

An approach-avoidance conflict is characterized by the presence of both advantages and disadvantages, or perceived negatives and positives. The conflict involves just one end goal, or decision. A person struggling with such a conflict usually finds a resolution by weighing the advantages and disadvantages. People may take mere minutes or years to come up with a decision related to an approach-avoidance conflict. Eventually, one chooses to forgo the disadvantages and choose the advantages side, or vice versa; or, one may just be left in a state of indecision for a time. Factors that may influence the resolution of such conflicts may include one's age, location, time limits, values, stress level, ethics, ideologies, temperament, support system, level of happiness, and more.


Question No. 5. 
Write short notes on the following: 
(a) Role of reinforcement 
(b) Organizational culture 
(c) Group cohesiveness 
(d) Resistance to change


(a) part
Reinforcement is the attempt to develop or strengthen desirable behavior. There are two types of reinforcement in organizational behavior: positive and negative.

Positive reinforcement strengthens and enhances behavior by the presentation of positive reinforcers. There are primary reinforcers and secondary reinforcers. Primary reinforcers satisfy basic biological needs and include food and water. However, primary reinforcers don not always reinforce. For instance, food may not be a reinforcer to someone who has just completed a five course meal. Most behaviors in organizations are influenced by secondary reinforcers. These include such benefits as money, status, grades, trophies and praise from others. These include such benefits as money, status, grades, trophies and praise from others. These become positive reinforcers because of their associations with the primary reinforcers and hence are often called conditioned reinforcers.

It should be noted that an event that functions as a positive reinforce at one time or in one context may have a different effect at another time or in another place. For example, food may serve as a positive reinforcer for a person who is hungry, but not when the person, as stated above, has already a large meal. Clearly, a stimulus that functions as a positive reinforcer for one person may fail to operate in a similar manner for another person.

Within itself, positive reinforcement has several principles.

The principle of contingent reinforcement states that the reinforcer must be administered only if the desired behavior has occurred. A reinforcer administered when the desired behavior has not been performed becomes ineffective.
  • The principle of immediate reinforcement states that the reinforcer will be most effective if administered immediately after the desired behavior has occurred. The more time that elapses after the behavior occurs, the less effective the reinforcer will be.
  • The principle of reinforcement size stated that the larger the amount of reinforcement delivered after the desired behavior, the more effect the reinforcer will have on the frequency of the desired behavior. The amount or size of reinforcer is relative. A reinforcer that may be insignificant to one person may be significant to another person. Thus, the size of the reinforcer must be determined in relation both to the behavior and the individual.
The principle of reinforcement deprivation states that the more a person is deprived of the reinforcer, the greater effect it will have on the future occurrence of the desired behavior. However, if an individual recently has had enough of a reinforcer and is satisfied the reinforcer will have less effect.
In negative reinforcement, an unpleasant event that precedes a behavior is removed when the desired behavior occurs. This procedure increases the likelihood that the desired behavior will occur. Just as there are positive reinforcers, there are the stimuli that strengthen responses that permit an organism to avoid or escape from their presence. Thus, when we perform an action that allows us to escape from a negative reinforcer that is already present or to avoid the threatened application of one, our tendency to perform this action in the future increases. Some negative reinforcers such as intense heat, extreme cold, or electric shock, exert their effects the first time they are encountered, whereas others acquire their impact through repeated association.

We see negative reinforcement in organizations and in personal life. Supervisors apply negative reinforcement when they stop criticizing employees whose poor performance has improved. By withholding the criticism, employees are more likely to repeat behaviors that enhance their performance. Negative reinforcement also occurs when parents give in to their children’s tantrums- especially in public places, such as restaurants and shopping malls. Over time, the parent’s tendency to give in may increase, because doing so stops screaming.

Thus, both positive and negative reinforcement are procedures that strengthen or increase behavior. Positive reinforcement strengthens and increase behavior by the presentation of desirable consequences. Negative reinforcement strengthens and increases behavior by the threat of and the use of an undesirable consequence or the termination or withdrawal of an undesirable consequence.

Negative reinforcement is sometimes confused with punishment, because both use unpleasant stimuli to influence behavior. However, negative reinforcement is used to increase the frequency of a desired behavior, where as punishment is used to decrease the frequency of an undesired behavior.


(b) part
A great organizational culture is the key to developing the traits necessary for business success. And you’ll see its effects in your bottom line: companies with healthy cultures are 1.5 times more likely to experience revenue growth of 15 percent or more over three years and 2.5 times more likely to experience significant stock growth over the same period. Despite this, only 31 percent of HR leaders believe their organizations have the culture they need to drive future business, and getting there is no easy task — 85 percent of organizations fail in transforming their cultures.

This is a comprehensive guide to making culture a major strength of your organization, from what culture is and why it’s important to a roadmap you can follow to create a culture that delivers results time after time.

Organizational culture is the collection of values, expectations, and practices that guide and inform the actions of all team members. Think of it as the collection of traits that make your company what it is. A great culture exemplifies positive traits that lead to improved performance, while a dysfunctional company culture brings out qualities that can hinder even the most successful organizations.

Don’t confuse culture with organizational goals or a mission statement, although both can help define it. Culture is created through consistent and authentic behaviors, not press releases or policy documents. You can watch company culture in action when you see how a CEO responds to a crisis, how a team adapts to new customer demands, or how a manager corrects an employee who makes a mistake.

Organizational culture affects all aspects of your business, from punctuality and tone to contract terms and employee benefits. When workplace culture aligns with your employees, they’re more likely to feel more comfortable, supported, and valued. Companies that prioritize culture can also weather difficult times and changes in the business environment and come out stronger.

Culture is a key advantage when it comes to attracting talent and outperforming the competition. 77 percent of workers consider a company’s culture before applying, and almost half of employees would leave their current job for a lower-paying opportunity at an organization with a better culture. The culture of an organization is also one of the top indicators of employee satisfaction and one of the main reasons that almost two-thirds (65%) of employees stay in their job.

Every organization’s culture is different, and it’s important to retain what makes your company unique. However, the cultures of high-performing organizations consistently reflect certain qualities that you should seek to cultivate:

•  Alignment comes when the company’s objectives and its employees’ motivations are all pulling in the same direction. Exceptional organizations work to build continuous alignment to their vision, purpose, and goals.

•  Appreciation can take many forms: a public kudos, a note of thanks, or a promotion. A culture of appreciation is one in which all team members frequently provide recognition and thanks for the contributions of others.

•  Trust is vital to an organization. With a culture of trust, team members can express themselves and rely on others to have their back when they try something new.

•  Performance is key, as great companies create a culture that means business. In these companies, talented employees motivate each other to excel, and, as shown above, greater profitability and productivity are the results.

•  Resilience is a key quality in highly dynamic environments where change is continuous. A resilient culture will teach leaders to watch for and respond to change with ease.

•  Teamwork encompasses collaboration, communication, and respect between team members. When everyone on the team supports each other, employees will get more done and feel happier while doing it.

•  Integrity, like trust, is vital to all teams when they rely on each other to make decisions, interpret results, and form partnerships. Honesty and transparency are critical components of this aspect of culture.

•  Innovation leads organizations to get the most out of available technologies, resources, and markets. A culture of innovation means that you apply creative thinking to all aspects of your business, even your own cultural initiatives.

•  Psychological safety provides the support employees need to take risks and provide honest feedback. Remember that psychological safety starts at the team level, not the individual level, so managers need to take the lead in creating a safe environment where everyone feels comfortable contributing. Now that you know what a great culture looks like, let’s tackle how to build one in your organization.


(c) part
In business parlance group cohesiveness means the extent to which members of the group stick together and their commitment to each other. It is the affinity which the members share among each other which binds the group as a single unit. It signifies the extent of sincerity and interest of the members to remain in the group.

Group cohesiveness is visible if the aims of the group and its members coincide. If there is a good attachment between members and similarity of goals then it forms an intact organization.

If the liking between members is not that good the cohesiveness of the group gets weakened. Individual goals are different from group goals lessens the bond between members. If an individual puts his career and desires in the forefront and joins the group for his own selfish interest, it will negatively impact the group.

Salient Features Affecting Group Cohesiveness

In business management studies, strategists and industrial personnel claim that cohesiveness increases productivity and dynamism and also is helpful in the retention of employees in the group. Vice versa the group supports the members to achieve much more than he would do on his own.

Groups as a comprehensive element with skillful working provide a conducive atmosphere to enhance ones interactive skills and abilities.

1) Like-Mindedness
A group should consist of like-minded individuals with similar tastes to a certain extent. Then only the group can achieve common goals.

The group selects individual members on the basis of some familiarizes with the group likings. People with different thought processes than the group’s motives are generally rejected.

A common goal for the group is identified and it is understood that members will work for the group’s interest inclusive of their own interest.

2) Dialogue
Logical communication between the group and the members is most essential. Thoughts should be verbally explained to reach a final conclusion.

Any kind of misinterpretation of words between members and the groups will lead to all sorts of trouble.

The member’s mindset should be properly put across the table to avoid any miscommunication. This will also help in forging and strengthening the bond among the members and the group.

3) Background
Previous experiences of other groups and exposure to a different set of ideas are also very important. Different experiences bring different perspectives which help in enhancing the performance of the group.

New thoughts and views from varied sources give birth to newer ideas and create more awareness and productivity within the group. People from different backgrounds have fresh ideas from their previous experiences which helps in the growth of the group and in turn help in the group cohesiveness.

4) Confidence
Reliability and trust is an important element in group cohesiveness. The individuals in a group need to trust the team and its decisions to bring about a positive change.

Trust connects the group and the members so that decisions can be taken in unanimity.

5) Goals and Ambitions
Having an objective and a common goal sets the foundation for a positive outcome.

Most groups have a common aim in which they strive to deliver by their activities and social services. These positive aims help them in attaining goodwill in the market which furthers their future enhancements.


(d) part

'Change is constant and unavoidable. However, human behaviour has repeatedly shown a resistance to change in the existing methods and ways of doing work. Organizations, for the advancement of business processes, require constant adaptation to changes. However, organizational resistance to change acts as a major hindrance in the path of development and success of an organization. Such resistance to organizational change brings in the need for defined change management.


Before we move on to discuss the resistance to change theory, the reasons for resistance to change and the ways of managing the resistance to change, let’s take a quick look at the main causes of change in an organization:

Business strategy and structure change

Mergers and acquisitions

Product reaching the end of the life cycle

Changes in government priorities

So, the influencing factors for organizational change can be both internal as well as external.


Resistance to Change Meaning in Organizational Context
The resistance to change meaning can be defined as a major obstacle in the way of development with new technology and methodologies. Change in the techniques and organizational structure comes at regular intervals. However, with pre-existing methods, individuals become reluctant to learn and implement the new techniques bringing in a resistance to change. Resistance can be in the form of protests and strikes by employees, or even in the form of implicit behaviour. The organization with its managers must take up initiatives in managing resistance to change and in the process develop a gradual adaptation to change ensuring productivity as well as efficiency at work. 


Reasons for Resistance to Change
The common causes of resistance to change in all organizations are stated below:

People are not willing to go out of their comfort zones defined by some existing methods for learning something new.

Changes in methods and techniques come with a change in power, responsibilities as well as influence. Organizational resistance to change comes in from people negatively affected by the changes implemented.

Insecurity, laziness and lack of creative approach make people cling to the pre-existing customs there by resisting changes.


Types of Resistance to Change
The types of resistance to change are stated below:

1. Logical Resistance: Such resistances come in with the time genuinely required in adaptation and adjustment to changes. For example, with the advent of talkies, the movie production houses had to shift techniques in the change from silent movies to talkies. This, in a very logical sense, took time for the sound engineers and even the filmmakers to adapt.


2. Psychological Resistance: Often resistance to change in change management comes with the psychological factor of fear of embracing the unknown, or even from hatred for the management and other mental factors like intolerance to changes.


3. Sociological Resistance: Sometimes resistances come not for particular individuals but from a group of individuals. In such cases, individuals do not allow their acceptance with the fear of breaking ties with the group.  


Managing Resistance to Change
An organization’s effort in managing resistance to change should come with proper education and training of the employees of the changes implemented. For a smooth change to facilitate, the organization has to take care of the considerations stated below:

Changes should come in stages. A one-time major change would straightaway put operations into a stop.

Changes should not affect the security of workers.

Leadership qualities in managers with initial adaptations would gradually encourage employees to do so.

An opinion must be taken from the employees who will ultimately be subject to the changes.

Educating the employees and training them with the new methodology will boost up their confidence and build their efficiency. 

The basic resistance to change theory defines the resistance to change meaning as the reluctance of people to adapt to the changes and to cling to the pre-existing customs and methods, mostly due to the fear of facing the unknown and its possible negative effects. The management of an organization must be well aware of the various aspects of resistance to organizational change and be trained if the need arises, in methods of managing resistance to change. This is crucial for a smooth transition and restoration of organizational harmony.










All Questions - MCO-021 - MANAGERIAL ECONOMICS - Masters of Commerce (Mcom) - First Semester 2024

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