Question No. 4 - MCO-01 - Organisation Theory and Behaviour - Master of Commerce (M.Com)

Solutions to Assignments 

MCO-01 - Organisation Theory and Behaviour

Master of Commerce (M.Com) - 2nd Year 

Question No. 4 Differentiate between the following: 
(a) Classical conditioning and Operant conditioning 

Classical and operant conditioning are two important concepts central to behavioral psychology. While both result in learning, the processes are quite different. To understand how each of these behavior modification techniques can be used, it is also essential to understand how classical and operant conditioning differ from one another.

Classical Conditioning

Even if you are not a psychology student, you have probably at least heard about Pavlov's dogs. In his famous experiment, Ivan Pavlov noticed dogs began to salivate in response to a tone after the sound had repeatedly been paired with presenting food. Pavlov quickly realized that this was a learned response and set out to further investigate the conditioning process.

Classical conditioning is a process that involves creating an association between a naturally existing stimulus and a previously neutral one. Sounds confusing, but let's break it down:

The classical conditioning process involves pairing a previously neutral stimulus (such as the sound of a bell) with an unconditioned stimulus (the taste of food).

This unconditioned stimulus naturally and automatically triggers salivating as a response to the food, which is known as the unconditioned response. After associating the neutral stimulus and the unconditioned stimulus, the sound of the bell alone will start to evoke salivating as a response. The sound of the bell is now known as the conditioned stimulus and salivating in response to the bell is known as the conditioned response.

Classical conditioning is much more than just a basic term used to describe a method of learning; it can also explain how many behaviors form that can impact your health. Consider how a bad habit might form. Even though you have been working out and eating healthy, nighttime overeating keeps tripping up your dieting efforts.

Thanks to classical conditioning, you might have developed the habit of heading to the kitchen for a snack every time a commercial comes on while you are watching your favorite television program.

While commercial breaks were once a neutral stimulus, repeated pairing with an unconditioned stimulus (having a delicious snack) has turned the commercials into a conditioned stimulus. Now every time you see a commercial, you crave a sweet treat.

Operant Conditioning

Operant conditioning (or instrumental conditioning) focuses on using either reinforcement or punishment to increase or decrease a behavior. Through this process, an association is formed between the behavior and the consequences of that behavior.

Imagine that a trainer is trying to teach a dog to fetch a ball. When the dog successfully chases and picks up the ball, the dog receives praise as a reward. When the animal fails to retrieve the ball, the trainer withholds the praise. Eventually, the dog forms an association between the behavior of fetching the ball and receiving the desired reward.

For example, imagine that a schoolteacher punishes a student for talking out of turn by not letting the student go outside for recess. As a result, the student forms an association between the behavior (talking out of turn) and the consequence (not being able to go outside for recess). As a result, the problematic behavior decreases.

A number of factors can influence how quickly a response is learned and the strength of the response. How often the response is reinforced, known as a schedule of reinforcement, can play an important role in how quickly the behavior is learned and how strong the response becomes. The type of reinforcer used can also have an impact on the response.

For example, while a variable-ratio schedule will result in a high and steady rate of response, a variable-interval schedule will lead to a slow and steady response rate.

In addition to being used to train people and animals to engage in new behaviors, operant conditioning can also be used to help people eliminate unwanted ones. Using a system of rewards and punishments, people can learn to overcome bad habits that might have a negative impact on their health such as smoking or overeating.

Classical vs. Operant Conditioning

One of the simplest ways to remember the differences between classical and operant conditioning is to focus on whether the behavior is involuntary or voluntary.

Classical conditioning involves associating an involuntary response and a stimulus, while operant conditioning is about associating a voluntary behavior and a consequence.

In operant conditioning, the learner is also rewarded with incentives, while classical conditioning involves no such enticements. Also, remember that classical conditioning is passive on the part of the learner, while operant conditioning requires the learner to actively participate and perform some type of action in order to be rewarded or punished.

For operant conditioning to work, the subject must first display a behavior that can then be either rewarded or punished. Classical conditioning, on the other hand, involves forming an association with some sort of already naturally occurring event.

Today, both classical and operant conditioning are utilized for a variety of purposes by teachers, parents, psychologists, animal trainers, and many others. In animal conditioning, a trainer might utilize classical conditioning by repeatedly pairing the sound of a clicker with the taste of food. Eventually, the sound of the clicker alone will begin to produce the same response that the taste of food would.

In a classroom setting, a teacher might utilize operant conditioning by offering tokens as rewards for good behavior. Students can then turn in these tokens to receive some type of reward, such as a treat or extra playtime. In each of these instances, the goal of conditioning is to produce some sort of change in behavior.

(b) Formal and Informal Work Groups 

Definition of Formal Group

A formal group is a collection of persons, who came together for achieving a specified goal. They are always created with intent to fulfil some official requirement. Formation of the group is done by the management. It possesses a systematic structure, in hierarchical form.

In general, the employees of the organisation are divided into groups, and a task is a hand over to each group. In this way, the task of the group is accomplished along with the fulfilment of organisational goals. The given are the types of formal groups:

Command groups: The groups that consist of managers and their subordinates.

Committees: The group of people who are appointed by an organisation, to resolve the matters, referred to them are known as Committee. For example Advisory Committee, Standing Committee, etc.

Task Forces: The group form to carry out a particular task is known as Task Forces.

Definition of Informal Groups

The groups that are created naturally, within the organisation, due to social and psychological forces are known as Informal groups. Under this group, the employees of the organisation, themselves enter into groups, without the approval of the management to satisfy their social needs on the job.

Nobody wants to live in isolation; people generally create a circle around themselves so that they can interact and share their feelings, opinions, experiences, information, etc. These circles are known as informal groups at the workplace. These groups are formed on the basis of common likes, dislikes, prejudices, contacts, language, interests, attitudes of the members. It includes interest group and friendship group. The communication is faster in such groups, as they follow grapevine chain.

There are no defined rules; that applies to the informal group. Moreover, the group possesses a loose structure. The bond between the members of the group is quite strong, which can be seen when one of the employees is kicked out of the job and all co-members his group goes on strike just to support him.

Key Differences Between Formal and Informal Groups

The following are the differences between formal and informal groups:

• The groups formed by the management of the organisation for accomplishing a specific task are known as Formal Groups. The groups that are formed by the employees themselves as per their likes and prejudices is known as Informal Groups.
• The formal groups are deliberately created by the organisation, whereas the informal groups are established voluntarily.
• The formal groups are big in size as compared to an informal group. Moreover, there can be sub-groups in a single formal group.
• The structure of a formal group is designed in a hierarchical manner while the informal group lacks structure or say it has no structure.
• In a formal group, the position of a member defines its importance in the group, but in an informal group, every member is as important as any other member.
• In a formal group, the relationship between the members is professional, they gather just to accomplish the task allotted to them. On the other hand, in an informal group, there is a personal relationship between members, they share their opinions, experiences, problems, information with each other.
• In a formal group, the flow of communication is restricted due to the unity of command. In contrast to an informal group, the flow of communication stretches in all directions; there is no such restriction.

We generally enter into groups, without knowing that Which kind of group is it? From the above post, hope you have understood the differences between the two kinds of group. Sometimes the members of formal groups and informal groups are same. The basic distinguishing feature between the two is that formal groups are always formed with an objective, but when an informal group is created, there is no such kind of intention at all.

(c) Power and Authority 

When the question is about influencing or manipulating others, two things go that side by side in the field of management are Power and Authority. These two are used to make people respond in the manner directed. Power is referred to as the capacity of an individual to influence the will or conduct of others. As against, authority is termed as the right possessed by a person to give the command to others.

Many of us think that these two terms are one and the same thing, but there exists a fine line of difference between power and authority. While the former is exercised in a personal capacity, the latter is used in a professional capacity. So, on this topic, we are going to throw light on the basic differences between the two, have a look.

Definition of Power

By the term power, we mean the personal capacity of an individual to influence others to do or not to do an act. It is independent and informal in nature derived from charisma and status. It is an acquired ability that comes from knowledge and expertise. It is the right to control other’s actions, decisions and performances.

Power is not hierarchical, i.e. it can flow in any direction like it can flow from superior to subordinate (downward) or junior to senior (upward), or between the persons working at the same level, but different departments of the same organization (horizontal), or between the persons working at different levels and departments of the same organization (diagonal). In this way, it is not confined to any boundaries. Moreover, the element of politics is usually attached to it.

Definition of Authority

Authority is legal and formal right to a person, who can take decisions, give orders and commands to others to perform a particular task. It is conferred to high officials, to accomplish organisation’s objectives. It is hierarchical in nature, it flows downward, i.e. delegated from superior to the subordinate.

In general, authority is exercised to get things done through others. It is attached to the position, i.e. any person who gets the position enjoys the authority attached to it, the higher the position, the higher would be his authority. As the authority lies in the designation, in the absence of authority, the position offered to the person would be of no use. Moreover, it is restricted to the organisation only.

Key Differences Between Power and Authority

The difference between power and authority can be drawn clearly on the following grounds:

• Power is defined as the ability or potential of an individual to influence others and control their actions. Authority is the legal and formal right to give orders and commands, and take decisions.
• Power is a personal trait, i.e. an acquired ability, whereas authority is a formal right, that vest in the hands of high officials or management personnel.
• The major source of power is knowledge and expertise. On the other hand, position and office determine the authority of a person.
• Power flows in any direction, i.e. it can be upward, downward, crosswise or diagonal, lateral. As opposed to authority, that flows only in one direction, i.e. downward (from superior to subordinate).
• The power lies in person, in essence, a person acquires it, but authority lies in the designation, i.e. whoever get the designation, get the authority attached to it.
• Authority is legitimate whereas the power is not.

After reviewing the above points, it is quite clear that power and authority are two different things, where power has nothing to do with level or management or position. On the other hand, authority completely depends on these two, i.e. the position level determines the level of authority a person has. In addition to this, the authority relationships, i.e. the relationship between superior and subordinate are depicted on the organisational chart. Conversely, the power relationship is not shown in the organisation chart.

(d) Organisation Culture and Organisation Climate

Organizational Culture vs Climate

 

Difference between organizational culture and organizational climate is that the culture is about the norms, values and behaviour adopted by the employees within the organization while the climate is about the atmosphere of the organization that is created based on the culture. Organizational culture and climate differ from one organization to another. This article presents you with a brief description of the two concepts and an analysis of the difference between organizational culture and climate.

What is Organizational Culture?

Organizational culture is a set of values, beliefs, behaviors, customs and attitudes that govern how people behave within organizations. The culture of an organization provides boundaries and guidelines that help the employees of the organization to know the correct way of performing their jobs.

The culture of an organization is ingrained in the behavior of the employees within an organization and in a way it shows the ‘personality’ of the organization. The unique culture of an organization creates a distinct atmosphere that is felt by the people who are a part of the group, and this atmosphere is known as the climate of an organization.

Types of Organizational Culture

There are four types of cultures that can be identified in organizations as follows:

• Clan culture – It is where employees are behaving as an extended family, mentoring, nurturing and participation can be seen.

• Adhocracy culture – It is where employees of the organization are dynamic, risk-taking and innovative.

• Market Oriented culture – It is where employees are result oriented and focus on the job, competition and achievements.

• Hierarchically oriented culture – It is where the employees undergo a rigid structure, controls, former rules and policies. They expect to maintain stability, consistency and uniformity in their processes.

For example, an educational institute has a hierarchically oriented culture. It is the way all the activities function and also people perceive, think, and feel about things at the institute. 

What is Organizational Climate?

Organizational climate is about the the perception and feeling of each regarding the culture of a particular organization. The climate of an organization is subject to change frequently with the direct influence of top management within the organization. Organizational climate is much easier to experience and measure than organizational culture.

Types of Organizational Climate

There are different types of climates that have been created by the culture of an organization that can be categorized as follows:

• People-oriented climate – It is a climate that focuses on perceptions of individuals who are working in the organization.

• Rule-oriented climate – It is a climate based on established rules, policies and procedures in an organization.

• Innovation-oriented climate – It is a climate that encourages creative or new ways of doing tasks.

• Goal-oriented climate – It is a climate that focuses on achieving organizational goals.

What is the difference between Organizational Culture and Climate?

• Organizational climate can be clearly identified with the perceptions of individuals regarding the quality and characteristics of the organizational culture.

• Culture represents the true image of the organization, whereas climate represents individuals’ perceptions, although there might be differences between each of their ideas.

• Organizational culture is concerned with the macro vision of an organization, whereas organizational climate is very much concerned with the micro image of the organization.

Question No. 3 - MCO-01 - Organisation Theory and Behaviour - Master of Commerce (M.Com)

Solutions to Assignments 

MCO-01 - Organisation Theory and Behaviour

Master of Commerce (M.Com) - 2nd Year 

Question No.  3 Write short notes on the following: 
 (a) Bureaucratic theory 

Bureaucracy is defined in the dictionary as, “a system for controlling or managing a country, company, or organization, that is operated by a large number of officials employed to follow rules carefully”.

These days the word bureaucracy is often associated with negative connotations, but at the time bureaucratic theory was developed by Weber it was designed to solve some big problems with the way organizations were being run.

What is Bureaucratic Theory?

Because of the problems Weber saw with traditional authority he favored a more rational approach to running an organization and helping it to achieve its goals. There are two parts to Weber’s Bureaucratic Theory:

1. A clear organizational hierarchy

An organizational hierarchy defines how people are structured and fit within an organization. For example, a typical company will have the CEO at the top of the hierarchy, followed by the executive board. Each board member will then be responsible for managers, who in turn will manage employees.

Weber wanted each hierarchy to have what he called legal-rational authority. This means that defined authority sits with a position, not with a person. For example, your subordinate would never be able to tell you what to do even if they happened to be the son of the CEO because their formal position doesn’t hold that power. Basically, your authority comes from the position you hold in the hierarchy.

2. Clear rules for decision making

Weber referred to this as rational-legal decision-making rules. This means that there should be a set of explicit rules and procedures defining how the organization functions, and that these rules should be consistent with the rules and laws of wider society.

six characteristics of bureaucracy in turn.

1. Hierarchical Management Structure

One of the hallmarks of a bureaucracy is a hierarchical management structure. In a hierarchy, each level within the organizational structure controls the level below but is controlled by the level above.

Power and authority are clearly and explicitly defined for each position within the hierarchy. Job responsibilities and duties are also clearly defined for each position.

2. Division of Labor

Division of labor means that tasks are divided between the employees of the organization. Each employee will be responsible for specific tasks and each department will be responsible for specific functional areas.

As an example of this think about how your salary is set and paid within a large organization. Your salary will be set by your line manager, but you will be paid by the Payroll department, rather than the money being paid to your boss who would then give it to you. There are advantages to breaking things up in this way. First, your manager is the person in the best position to set your salary as they observe your performance much more closely than the payroll department. Second, the payroll department are specialists in payroll and ensure you get paid on the same day each month.

3. Formal Selection Process

All employees are treated equally and are hired and promoted on the basis of qualifications, expertise, performance, and experience. There are formal rules and regulations to ensure this selection process isn’t abused. For example, your manager can’t hire someone simply because they’re friends from the golf club.

4. Career Orientation

The organization is career orientated, meaning that if you follow the rules and regulations and perform well you will not be arbitrarily fired. In fact, if you perform well you may even have the chance to be promoted or receive a pay rise. In this way, the organization offers each employee the opportunity for a long term career, provided they follow the rules and perform well.

5. Formal Rules and Regulations

There are rules in place that govern how all employees should behave. Managers cannot simply appraise their employees according to their whims. Instead, they must assess employees according to the rules. For example, if you’ve been set a target to make 10 widgets and you make 10 widgets then you’ve achieved your target. Your manager can’t simply decide retrospectively that you should have really made 15 widgets and then fire you for not making 15 widgets. The rules protect employees against this type of behavior.

Similarly, there are rules surrounding how we behave, treat, and interact with other employees.

6. Impersonality

The rules are well defined and clear and are applied in the same way to everyone. The rules are there to prevent favoritism or nepotism.

If two employees were to enter into a relationship together whilst working within the same department, then often one of them will be moved to a different department or different part of the organization to avoid favoritism and help keep in-work relationships impersonal.

(b) Team effectiveness 

Team effectiveness is the capacity of a group of people, usually with complementary skills, to work together to accomplish goals set out by an authority, members, or leaders of the team. Team effectiveness models help us understand the best management techniques to get optimal performance from our teams. There are several critical factors to achieve maximum group effectiveness as the six models of team working below will show. 

Smart leaders and project managers should be aware of unique dynamics and relationships within their teams and create room to consistently improve team performance. Google, a company known for their innovative models of team effectiveness, spent years analyzing what makes some teams better than others. Their findings? It's less about who's on the team and more about how well they work together.

Understanding these team effectiveness models will help you figure out which of the team models would be best to optimize your team by shedding a light on what works and what needs to be improved.

Rubin, Plovnick, and Fry's GRPI Model of Team Effectiveness

This model of team effectiveness was proposed by Rubin, Plovnick, and Fry as early as 1977. It is also known by the acronym GRPI, which stands for Goals, Roles, Processes, and Interpersonal relationships. Represented as a pyramid diagram, this model outlines four parts teams need to be effective:

Goals: well-defined objectives and desired results, plus clearly communicated priorities and expectations

Roles: well-defined responsibilities and acceptance of a leader

Processes: clear decision-making processes as well as work procedures

Interpersonal relationships: good communication, trust, and flexibility

Because of its simplicity, the GRPI model is great when starting a team or when encountering a team-related problem with an unknown cause.

Choosing the right team effectiveness model for your team

If you have read this far, you may be wondering why there are so many team effectiveness models. Yet this list only scratches the surface. High-performance teams are a unique blend of individual perspectives, group dynamics, and organizational support. 

The different team effectiveness models help you identify specific gaps that hinder your team from collaborating and producing successful results. Remember that the way a team works together determines their success much more than the strength of individual team members. 

Therefore, leaders who focus on creating effective teamwork models elevate the work of everyone involved, and thus the success of their organizations.

(c) Theory of Attribution 

Attribution theory is intended to help a person understand the causes of human behavior, be it their own or someone else's. The basis of attribution theory is that people want to know the reasons for the actions that they and others take; they want to attribute causes to behaviors they see rather than assuming that these behaviors are random. This allows people to assume some feeling of control over their own behaviors and over situations. Psychologist Fritz Heider (1896–1988) first developed attribution theory in his 1958 book The Psychology of Interpersonal Relations. Heider proposed that what people perceived and believed about what they saw dictated how they would act, even if their beliefs about what they perceived were invalid.

Heider's proposed theory of attribution was further developed by psychologist Bernard Weiner and colleagues in the 1970s and 1980s, and this new theoretical framework has been used primarily in current attribution research. A final development to attribution theory was provided by psychologist Harold Kelley, who examined how consistency, distinctiveness, and consensus could be used by individuals to establish the validity of their perceptions.

Attributions are critical to management because perceived causes of behavior may influence managers' and employees' judgments and actions. For instance, managers must often observe employee performance and make related judgments. If a manager attributes an employee's poor performance to a lack of effort, then the outcome is likely to be negative for that employee; he or she may receive a poor performance appraisal rating or even be terminated from the job. Conversely, if a manager perceives that an employee's poor performance is due to a lack of skill, the manager may assign the employee to further training or provide more instruction or coaching. Making an inaccurate judgment about the causes of poor performance can have negative repercussions for the organization.

Attributions also may influence employee motivation. Employees who perceive the cause of their success to be outside of their control may be reluctant to attempt new tasks and may lose motivation to perform well in the workplace. Conversely, employees who attribute their success to themselves are more likely to have high motivation for work. Thus, understanding attributions that people make can have a strong effect on both employee performance and managerial effectiveness.

ATTRIBUTION PROCESS AND THE CAUSES OF BEHAVIOR

Attribution is considered to be a three-stage process. First, the behavior of an individual must be observed. Second, the perceiver must determine that the behavior they have observed is deliberate. That is, the person being observed is believed to have behaved intentionally. Finally, the observer attributes the observed behavior to either internal or external causes. Internal causes are attributed to the person being observed, while external causes are attributed to outside factors. The two internal attributions one can make are that a person's ability or a person's effort determined the outcome. Task difficulty and luck are the external causes of behavior. When perceiving behavior, an observer will make a judgment as to which of these factors is the cause of behavior. However, when making a determination between internal and external causes of behavior, the perceiver must examine the elements of consistency, distinctiveness, and consensus.

Consistency describes whether the person being observed behaves the same way when faced with the same set of circumstances. If the person being observed acts the same way in the same type of situation, consistency is high; if they act differently each time, then consistency is low. Distinctiveness is whether the observed person acts the same way in different types of situations. If the person being observed exhibits the same behavior in a variety of contexts, then distinctiveness is low; if they have different behavior depending on the context, then distinctiveness is high. Finally, consensus is the degree to which other people, if in the same situation, would behave similarly to the person being observed. If the observer sees others acting the same way that the person being perceived acts, then consensus is high. However, if others behave differently in the type of situation, then consensus is low. Consistency, distinctiveness, and consensus are evaluated when observing behavior, and then a judgment about an internal versus external cause of behavior is made. When consistency, distinctiveness, and consensus are all high, the perceiver concludes that there is an external cause of behavior. When consistency is high, distinctiveness is low, and consensus is low, the perceiver will attribute the cause of behavior to internal factors.

To better understand consistency, distinctiveness, and consensus, consider a workplace example. Nancy, a manager, has assigned a team of employees to develop a custom sales training program for a client. As the project progresses, Nancy continues to see problems in the work produced by Jim, one of the team members. In order to determine why Jim's performance is not satisfactory, Nancy first considers consistency, or whether Jim has performed poorly on other similar team projects. A review of his past performance appraisals indicates that he has not had prior performance problems when creating custom sales training programs. This would lead Nancy to conclude that there was an external cause of the poor performance. Second, Nancy considers distinctiveness; she wants to know if Jim has performed poorly on different types of tasks. Again, in checking Jim's performance reviews, she finds that when he is on a team to accomplish a different type of task, such as developing a selection interview, he has excelled. This further points to an external cause of Jim's poor performance. Finally, Nancy assesses consensus, or the behavior of others in this similar task. In asking the team members about their experiences with the current project, she finds that many of them have had difficulty in developing this custom sales training program. Thus, all indicators point to Jim's poor performance being caused by an external factor, such as a difficult task or a demanding client. Based on this attribution, Nancy may explore ways in which to minimize the negative effects of the external factors on Jim's performance rather than attempting to influence his level of effort or ability.

The prior example illustrated how consistency, distinctiveness, and consensus might point toward an external cause. However, these three factors also may lead an observer to attribute behavior to an internal cause, such as the observed person's effort or ability. Nancy, the observer from the previous example, also has experienced difficulties with a secretary named Kelly. Another manager has complained to Nancy that Kelly has not completed work on time and turns in work full of errors. Nancy observes Kelly for several days and finds that, when given work by this particular manager, Kelly continues to perform poorly, which indicates an internal cause (i.e., high consistency). Second, when performing work for other managers on other tasks, Kelly continues to do substandard work; this is distinctiveness, and it again points to an internal cause. Finally, Nancy observes that when other secretaries perform the work assigned by the manager who complained about Kelly, they are able to successfully perform their duties in a timely manner. This is consensus, and it also points to an internal cause. Based on these observations, Nancy can attribute Kelly's poor performance to an internal cause, or namely to Kelly's own lack of skill or effort.

(d) Models of men

The five important models of individual behavior, i.e, (1) Rational Economic Man, (2) Social Man, (3) Organizational Man, (4) The Self Actuating Man, and (5) Complex Man.

1. Rational Economic Man:

From the organisational perspective, managers had, for a long time, viewed their employees as rational beings who are primarily motivated by money. They took the ‘ECONOMIC MAN’ and ‘RATIONAL MAN’ approach to understand and predict the human behaviour. This model is based on classical organisation theory.

The Scientific Management Movement was based on the belief that by rationally explaining the one best way to do things and offering incentives to workers in the form of piece rates and bonuses, organisational output can be increased. Psychologists have also studied this model for predicting human behaviour. For example, McGregor’s assumptions of Theory X reflect this model.

The basic assumptions of the concept of ‘Rational Economic Man’ are as follows:

(i) People are motivated primarily by economic incentives. They will do things which get them the greatest economic gain.

(ii) As the organisation controls the economic incentives, human beings are essentially passive agents, who are manipulated, motivated and controlled by the organisation.

(iii) The feelings of the people are essentially irrational and must be controlled to achieve rationality and self interest.

(iv) Organisations can and must be designed in such a way so as to neutralize and control people’s feelings and therefore their unpredictable traits.

In this model, people are induced to produce more by providing them with economic incentives. In this case, there is no organisation-employees conflict because both are satisfying their needs simultaneously. Management is getting more production and people are getting more money.

2. Social Man:

With the passage of time, the advocates of human relations school recognized that there is a lot more to human behaviour than just being social man economic and rational. Advocates of this school considered the worker as a social man. They recognized that man is a part of the social group he is influenced by the social forces and seeks satisfaction of the needs which are related to the maintenance of his social relationships. Eltan Mayo conceived the concept of the social man when he carried out Hawthorne studies during 1927-32.

From the reports of Hawthorne experiments the following assumptions about human beings can be drawn:

(i) Human beings are basically motivated by social needs and all their efforts are directed towards getting this satisfaction by maintaining relationships with others.

(ii) A human being is more responsive to the pressures and sanctions of his social group than to the incentives and controls of the management. The reason is that he values social relationship higher than his economic motives which are directly under the control of management.

(iii) The amount of work to be done by a worker is not determined by his physical capacity or by the management but by the social norms.

(iv) Generally people do not act or react as individuals but as members of a group.

(v) Informal leaders play an important role in setting and enforcing the group norms.

(vi) Management should change and organize work in such a way that it provides more belongingness not only in terms of interpersonal and group relationships, but also man’s relationship with his job.

The type of managerial strategy that is to be applied in the case of social man is quite different as compared to the strategy to be applied in case of Economic-Rational man. The total system of social man is directed towards people.

3. Organisational Man:

Organisation man is an extension of social man. The concept of organisation man was introduced by William Whyte. He believed that it is very important for a person to be loyal to the organisation and cooperative with the fellow workers. Any person who believes in this value system and acts in this way is an organisation man. The basis of this concept is and that every individual should sacrifice his individuality for the sake of the group and the organisation.

This idea was initially suggested by Henry Fayol, when he suggested that individual interest should be subordinated to the general interest. Whyte had explained three major propositions, on which this concept of organisation man is based.

These propositions are as follows:

(i) The first proposition is that individual by himself is isolated and meaningless. The group is the source of activity. Individuals create only when they move in a group. A group helps to produce a whole that is greater than the sum of its parts.

(ii) The ultimate need of every individual is belongingness. He wants to belong to his families, friends, relatives, colleagues and other members of the society as a whole. Whyte says that there should be no conflict between man and society.

(iii) The goal of belongingness is achieved with the help of science. Whenever there is a conflict between the needs of the society and the needs of the individual, an equilibrium can be created by applying the methods of science. Science can help in removing all the obstacles to consensus.

The organisation man concept emphasis, that there is no conflict between the individual interest and the interest of the organisation. Even if there is any conflict, individual interest will be sacrificed in favour of the group interest to remove the conflict. However, there is a basic assumption behind this concept.

The assumption is that management will take care of the individual interests. It would be the duty of the management to satisfy the needs of the individuals. People will be willing to sacrifice their interests for the organisation only if they are positive that the organisation would take care of them.

4. The Self Actuating Man:

The concept of self actuating man is a further extension of social man and the organisation man models. The social man concept assumes that the formation of social groups is the basis of satisfaction for the individuals. But as against this the self actuating man assumes that man’s inherent need is to use his capabilities and skills in such a way that he should have the satisfaction of creating certain things. The earlier models do not allow him to satisfy his self actuating needs.

Following are the main assumptions about the self actuating man:

(i) The basic assumption about this concept is that the various needs of a man can be put in the order of priority. For example, MASLOW has put various needs in a hierarchy: Every unsatisfied need is a motivational factor for him. Self actualization according to this diagram is the ultimate goal, because it is last in the hierarchy and by the time his goal is achieved, all the other needs of the man are also satisfied.

(ii) In the process of self actualization, there are various changes in the behaviour of the individual and he moves from immaturity to maturity.

(iii) Another assumption is that a man is primarily self motivated and self controlled. Any incentives given by the management cannot motivate him after a certain level and any control imposed on him cannot threaten him.

(iv) The earlier models were based on the assumption that a man has got immature personality. However, the reality is that if a man is left free, he will put in his maximum efforts.

These assumptions are generally based upon McGregor’s theory Y and Argyris’s immaturity-maturity theory. To satisfy a self actuating man what are required are all the managerial actions meant to satisfy the social man with some additional features.

5. Complex Man:

Complex man presents the real picture of human picture of human behavior. All the previous models make very simplistic assumptions about people and their behaviour.

Researchers have proved that these assumptions are not correct as explained below:

(i) The earlier models assume that man will always behave according to certain set patterns. But research has indicated that there are many complex variables, which determine the human behaviour. These variables are quite unpredictable. So the human behaviour which is based on these variables cannot follow a set pattern.

(ii) The behaviour of man can be understood and predicted in the given conditions, depending upon the assumptions made. But research has indicated that even if cause-effect relationship is established between the variables and behaviour, it is not easy to understand and predict the individual behaviour because of the individual differences. It is not necessary that everyone will behave accordingly.Most behaviour in the organisation can be understood by taking assumptions of complex man.

Question No. 5 - IBO-03 - India’s Foreign Trade - Master of Commerce (M.Com)

Solutions to Assignments 

IBO-03 - India’s Foreign Trade

Master of Commerce (M.Com) - 1st Year 

Question No. 5 Comment briefly on the following statements: 
(a) Electronic commerce is re-creating the worlds economy; 

E-commerce is part of economics and traditional commerce, and it has a close relationship to other sciences such as administration and law. It requires an administrative and regulatory environment that is suitable for its management and legal for the protection of its clients. E-commerce, or electronic commerce, is the transmission of funds or data through the internet to facilitate the purchase and sales of goods and services.

Economists confirm that the third industrial revolution focused on the software industry, the Internet and open satellite channels began with the advent of the computer. This has brought about tremendous developments in all areas of life, especially economic and commercial ones. The markets have been crowded with companies and multiple products, and competition has intensified among them then E-commerce emerged as a tool for modern commerce which has contributed significantly to changing the future of global business.

One of the advantages of e-commerce is that it provides time and effort, facilitates access to foreign markets, helps economic growth and improves exports and production. However, it presents a range of challenges, especially in terms of competition in local markets where the capabilities of supra-national and multinational companies may lead to the inability of national companies to compete it and continue in the markets .

Examples of global e-commerce markets include :

– The Amazon Market, founded by Jeff Bezos in Seattle, Washington, DC on July 5, 1994 he , is the world’s largest online retailer in terms of gross sales and market value.

The site began as an online library, then started selling DVDs, Blu-ray discs, CDs, download and broadcast video , MP3 download and broadcast, and the company is producing consumer electronics, the world’s largest provider of cloud infrastructure services.

– And the market of Alibaba Group Holding limited of China . it belongs to the Chinese private sector , the group was established in 1999 and headquartered in Hangzhou, People’s Republic of China, and its founder, Jack Ma, wanted to create an online portal called Ali Baba.com for business to link Chinese manufacturers and traders to the consumers and buyers from all over the world, earning most of its revenues from its business activities over the Internet , and then Jack Ma created aTaobai site similar to eBay’s website directed from consumer-to-consumer , one of the 20 most visited sites in the world with nearly a billion Product, and sites of Ali Baba Group Holdings represent more than 60% of parcels delivered to China.

The impact of e-commerce on the following:

– Market structure:

E-commerce affects the structure of markets, whether goods or services, or the markets of production elements noting that the economic growth depends not only on the supply of production elements or on the increase in the supply of goods and services, but on how to take advantage of all these factors to achieve the highest possible revenue whether it was economic Or socially, depending on the optimal utilization of the available resources in the society and the nature of the market in which it is operating , which plays a crucial role in achieving the optimizing allocation of the resources , as the closer the market to full competition, the more it can be achieved ,and the e-commerce affects the structure of markets that it brings us closer to access to the market of full competition.

– Economic growth:

E-commerce affects economic variables and growth rates. It leads to higher wages, higher standards of living for individuals, structuring markets and expanding marketing, increasing sales and exports and thus increasing production and growth rates. The use of modern technological means of trade by states increases the strength of its economy and its growth, and this is beneficial to the social , health and education sectors , because of the use of modern technological means in the dealings, and iunder the electronic commerce , it is possible to develop production in accordance with its electronic nature , which increases sales, and Increases corporate profits.

E-commerce provides the right climate for the increase of production and efficiency by supporting the computer and software industries, the technological industry and other associated industries, such as electronic storage media, networks and communications, which are the infrastructure for e-commerce.

The spread of e-commerce requires more of these products, which increases its production. In particular, the use of electronic means in trade increases the level of management and organization within the institution and the development of its productivity activities, such as searching in the Internet for new sources of funding abroad and producing new types of Goods fit for the nature of e-commerce, which works to support the economies of countries.

– Exports:

E-commerce helps to increase foreign trade, especially exports, by facilitating access to global markets, making business deals easily and quickly without any administrative or commercial restrictions, responding to changes in consumer demand and marketing local products in these markets, increasing the exports of these countries.

E-commerce is increasing trade in services between countries. This sector accounts for 60% of the world’s total production. With the emergence of modern ICT, making the e-commerce to facilitate the process of convergence between consumers and producers and eliminates geographical distances.

– Investment:

E-commerce creates new investment opportunities, especially in the ICT sector, because they play an important role in the infrastructure of e-commerce. The spread of e-commerce requires increasing production in this sector and directing capital to invest in it to develop the infrastructure of e-commerce and then increase the investment in ICT sector which works to support the national economy.

– Capital Market:

E-commerce affects the capital market as capital flows are exchanged between surplus units, “savings” and “deficit” units “the investors”, through the issuance of long-term stocks and bonds, which plays a major role in stimulating investment and economic growth noting that the e0commerce increases the effectiveness of stock exchanges, where the contracts of purchase and sale of the securities traded in the stock exchange are concluded , and the possibility of obtaining information on these traded securities quickly, and the issuance of orders for the sale and purchase for brokers, all are done electronically, electronic commerce gives great flexibility through the availability of contracts or orders for sale or purchase, through e-mail or modern electronic means used in circulation, and provide quick information on the market for investors, noting that the brokers can not provide these information about securities traded in the market quickly in some times .

– Work’s strength

Most of the developing and developed countries suffer from unemployment problems and the lack of jobs that accommodate the labor force, and e-commerce can bring advantages to the national economy of the state in the field of employment in two ways:

• The first is that it is creating new opportunities for employment, by setting up small and medium-sized businesses and connecting them to the international markets at the lowest investment costs, especially the trade in services where e-commerce provides a mechanism for specialized individuals to provide their services at the regional and global levels without the need to move, tha matter that opens the space for them to work in free business.

• Second, e-commerce offers career opportunities in several areas related to e-commerce applications, such as specialists in e-commerce sites , employees, administrators and technicians in e-shops, as well as providing jobs in the ICT sector in which the e-commerce depends on of the engineers of Networks and software needed for e-commerce applications and others.

The use of e-commerce would lead to the removal of traditional jobs and the replacement of new jobs with a new skill, which required the training of workers to use technology so that they could enter the competition and win jobs.

This means that e-commerce negatively affects manual jobs and unqualified labor, but it has a positive impact on technically trained labor where it can easily find jobs and help to create job titles and disciplines that were not previously required or known.

(b) The government of India announced sweeping changes in the trade policy in the year 1991; 

The current trade policy reforms seem to have been guided mainly by the concerns over globalisation of the Indian economy, improving competitiveness of its industry, and adverse balance of payments situation. Main features of trade policies (trade reforms) since 1991 are as follows:

1. Freer Imports and Exports:

Substantial simplification and liberalisation has been carried out in the reform period. The tariff line wise import policy was first announced on March 31, 1996 and at that time itself 6,161 tariff lines were made free.

Till March 2000, this total had gone up to 8,066. The Exim Policy 2000-01 removed quantitative restrictions on 714 items and the Exim Policy 2001- 02 removed quantitative restrictions on the balance 715 items. Thus, in line with India’s commitment to the WTO, quantitative restrictions on all import items have been withdrawn.

2. Rationalisation of Tariff Structure:

Acting on the recommendations of the Chelliah Committee, the government has, over the years, reduced the maximum rate of duty. The 1993-94, Budget had reduced it from 110 per cent to 85 per cent. The successive Budgets have reduced it further in stages. The peak import duty on non-agricultural goods is now only 12.5 per cent.

3. Decanalisation:

A large number of exports and imports used to be canalised through the public sector agencies in India. The supplementary trade policy announced on August 13, 1991 reviewed these canalised items and decanalised 16 export items and 20 import items. The 1992-97 policy decanalised imports of a number of items including newsprint, non-ferrous metals, natural rubber, intermediates and raw materials for fertilisers.

4. Devaluation and Convertibility of Rupee on Current Account:

The government made a two- step downward adjustment of 18-19 per cent in the exchange rate of the rupee on July 1 and July 3, 1991. This was followed by the introduction of LERMS i.e., partial convertibility of rupee in 1992-93, full convertibility on the trade account in 1993-94 and full convertibility on the current account in August 1994.

Substantial capital account liberalisation measures have also been announced. The exchange rate of the rupee is now market-determined. Thus, exchange rate policy in India has evolved from the rupee being pegged to a market related system (since March 1993).

5. Trading Houses:

The 1991 policy allowed export houses and trading houses to import a wide range of items. The government also permitted the setting up of trading houses with 51 per cent foreign equity for the purpose of promoting exports.

The 1994-95 policy introduced a new category of trading houses called Super Star Trading Houses. These houses are entitled to membership of apex consultative bodies concerned with trade policy and promotion, representation in important business delegations, special permission for overseas trading and special import licences at enhanced rate.

6. Special Economic Zones:

A scheme for setting up Special Economic Zones (SEZs) in the country to promote exports was announced by the government in the Export and Import Policy of March 31, 2000. The SEZs are to provide an internationally competitive and hassle-free environment for exports and are expected to give a boost to the country’s exports.

The Policy has provided provisions for setting up SEZs in the public sector, joint sector or by State governments. It was also announced that some of the existing Export Processing Zones (EPZs) would be converted into Special Economic Zones.

7. EOU Scheme:

The Export Oriented Units (EOUs) scheme introduced in early 1981 is complementary to the SEZ scheme. It offers a wide option in locations with reference to factors like source of raw materials, ports of export, hinterland facilities, and availability of technological skills, existence of an industrial base and the need for a larger area of land for the project. The EOUs have put up their own infrastructure.

8. Agriculture Export Zones:

The Exim Policy 2001 introduced the concept of Agri- Export Zones (AEZs) to give primacy to promotion of agricultural exports and effect a reorganisation of our export efforts on the basis of specific products and specific geographical areas.

The scheme is centered on the cluster approach of identifying the potential products, the geographical region in which these products are grown and adopting an end-to-end approach of integrating the entire process right from the stage of production till it reaches the market.

The AEZs would have the state-of-the-art services such as pre-post harvest treatment and operations, plant protection, processing, packaging, storage and related research and development. The exporters in these zones can avail of the various export promotion schemes under the Exim Policy including recognition as a status holder.

9. Market Access Initiative Scheme:

Market Access Initiative Scheme was launched in 2001- 02 for undertaking marketing promotion efforts abroad. The key features of the scheme are in- depth market studies for select products in chosen countries to generate data for promotion of exports from India, assist in promotion of India, Indian products and Indian brands in the international market by display through showrooms and warehouses set up in rental premises by identified exporters, display in identified leading departmental stores total exhibitions trade fairs, etc. The scheme shall also assist quality upgradation of products as per requirements of overseas markets, intensive publicity campaigns, etc.

10. Focus on Service Exports:

The amended Export-Import Policy, 2002-07, announced on March 31, 2003, specifically emphasized service exports as an engine of growth. It, accordingly, announced a number of measures for the promotion of exports of services. For instance, import of consumables, office and professional equipment, spares and furniture upto 10 per cent of the average foreign exchange export earning has been allowed.

The advance licence system has been extended to the tourism sector. Under this, firms will be allowed duty-free import of consumables and spares upto 5 per cent of their average foreign exchange earnings of the previous three years, subject to actual user condition.

11. Concessions and Exemptions:

A large number of tax benefits and exemptions have been granted during the 1990s to liberalise imports and promote exports with the five year Exim Policy 1992-97 and Exim Policy 1997-2002 serving as the basis for such concessions.

(c) The most remarkable aspect of Indian agriculture is its diversified nature; 

While agriculture’s share in India’s economy has more and more declined to but 15 August 1945 thanks to the high growth rates of the commercial and services sectors, the sector’s importance in India’s economic and social material goes well on the far side this indicator. First, nearly three-quarters of India’s families depend upon rural incomes. Second, the bulk of India’s poor (some 770 million folks or concerning seventy percent) ar found in rural areas. The most remarkable aspect of Indian agriculture is its diversified nature. And third, India’s food security depends on manufacturing cereal crops, likewise as increasing its production of fruits, vegetables and milk to fulfil the stress of a growing population with rising incomes. To do so, a productive, competitive, wide-ranging Associate in Nursing's property agricultural sector can ought to emerge at an accelerated pace.

India may be a world agricultural powerhouse. it's the world’s largest producer of milk, pulses, and spices, and has the world’s largest oxen herd (buffaloes), likewise because the largest space underneath wheat, rice and cotton. it's the second largest producer of rice, wheat, cotton, sugarcane, farmed fish, sheep & goat meat, fruit, vegetables and tea. The most remarkable aspect of Indian agriculture is its diversified nature. The country HAs some 195 m ha underneath cultivation of that some sixty three % ar rainfed (roughly 125m ha) whereas thirty seven % ar irrigated (70m ha). additionally, forests cowl some 65m HA of India’s land.

Raising agricultural productivity per unit of land: Raising productivity per unit of land can ought to be the most engine of agricultural growth as nearly all productive land is farmed. Water resources also are restricted and water for irrigation should subsume increasing industrial and concrete wants. All measures to extend productivity can would like exploiting, amongst them: increasing yields, diversification to higher price crops, and developing price chains to cut back promoting prices.

Reducing rural impoverishment through a socially comprehensive strategy that contains each agriculture likewise as non-farm employment: Rural development should conjointly profit the poor, landless, women, regular castes and tribes. Moreover, there ar sturdy regional disparities: the bulk of India’s poor ar in rain-fed areas or within the japanese Indo-Gangetic plains. Reaching such teams has not been straightforward. whereas progress has been created - the agricultural population classified as poor fell from nearly four-hundredth within the early Nineteen The most remarkable aspect of Indian agriculture is its diversified nature. Nineties to below half-hour by the mid-2000s (about a tenth fall per year) – there's a transparent would like for a quicker reduction. Hence, impoverishment alleviation may be a central pillar of the agricultural development efforts of the govt and therefore the UN agency.

Ensuring that agricultural growth responds to food security needs: The sharp rise in food-grain production throughout India’s revolution of the Nineteen Seventies enabled the country to realize self-reliance in food-grains and obviate the threat of famine. Agricultural intensification within the Nineteen Seventies to Nineteen Eighties saw Associate in Nursing inflated demand for rural labor that raised rural wages and, at the side of declining food costs, reduced rural impoverishment. but agricultural growth within the Nineteen Nineties and 2000s stalled, averaging concerning three.5% every year, and cereal yields have inflated by only one.4% every year within the 2000s. The slow-down in agricultural growth has become a significant cause for concern. India’s rice yields ar simple fraction of China’s and concerning 1/2 those in Vietnam and land. identical is true for many alternative agricultural commodities.

Policy manufacturers can therefore ought to initiate and/or conclude policy actions and public programs to shift the world far from the present policy and institutional regime that seems to be now not viable and build a solid foundation for a way additional productive, internationally competitive, and wide-ranging agricultural sector.

Promoting new technologies and reforming agricultural analysis and extension: Major reform and strengthening of India’s agricultural analysis and extension systems is one in every of the foremost necessary wants for agricultural growth. The most remarkable aspect of Indian agriculture is its diversified nature. These services have declined over time thanks to chronic underfunding of infrastructure and operations, no replacement of aging researchers or broad access to progressive technologies. analysis currently has very little to supply on the far side the time-worn packages of the past. Public extension services ar troubled and supply very little new information to farmers. there's deficient affiliation between analysis and extension, or between these services and therefore the personal sector.

Facilitating agricultural diversification to higher-value commodities: Encouraging farmers todiversify to higher price commodities are a big issue for higher agricultural growth, notably in rain-fed areas wherever impoverishment is high. Moreover, hefty potential exists for increasing agro-processing and building competitive price chains from producers to urban centers and export markets. whereas diversification initiatives ought to be left to farmers and entrepreneurs, the govt will, initial and foremost, liberalize constraints to promoting, transport, export and process. The most remarkable aspect of Indian agriculture is its diversified nature. It also can play alittle regulative role, taking ordinary care that this doesn't become Associate in Nursing impediment.

Promoting high growth commodities: Some agricultural sub-sectors have notably high potential for growth, notably dairy farm. The farm animal sector, primarily thanks to dairy farm, contributes over 1 / 4 of agricultural gross domestic product and may be a supply of financial gain for seventieth of India’s rural families, largely people who ar poor and headed by ladies. Growth in milk production, at concerning four-dimensional every year, has been brisk, however future domestic demand is anticipated to grow by a minimum of five-hitter every year. The most remarkable aspect of Indian agriculture is its diversified nature. Milk production is affected , however, by the poor genetic quality of cows, inadequate nutrients, inaccessible veterinary care, and alternative factors. A targeted program to tackle these constraints might boost production and have smart impact on impoverishment.

Developing markets, agricultural credit and public expenditures: India’s heritage of intensive government involvement in agricultural promoting has created restrictions in internal and external trade, leading to cumbersome and high-cost promoting and transport choices for agricultural commodities. Even so, personal sector investment in promoting, price chains and agro-processing is growing, however a lot of slower than potential. The most remarkable aspect of Indian agriculture is its diversified nature. whereas some restrictions ar being raised, significantly additional must be done to modify diversification and minimize client costs. up access to rural finance for farmers is another would like because it remains troublesome for farmers to urge credit. Moreover, subsidies on power, fertilizers and irrigation have more and more return to dominate Government expenditures on the world, and ar currently fourfold larger than investment expenditures, situation out high priorities like agricultural analysis and extension.

(d) The ASEAN region is important to India for several reasons. 

ASEAN has worked tirelessly for 50 years as a regional body founded on consensus to help secure peace, growth, and prosperity in the region. As a result, India prioritises ASEAN in its Indo-Pacific vision of regional security and growth for all. The ASEAN Regional Venue is the principal forum for ASEAN security dialogue (ARF). Since 1996, India has attended this forum’s yearly sessions and has actively engaged in its varied activities. The ASEAN Defence Ministers’ Meeting (ADMM) is ASEAN’s highest level of defence consultation and cooperation. The ADMM+ brings together Defence Ministers from the ten ASEAN countries, as well as Australia, China, India, Japan, New Zealand, the Republic of Korea, Russia, and the United States of America.

The ASEAN Multilateral Division provides ASEAN countries with project-based financial support. The funds have provided financial support to ASEAN countries.

India announced a US$ 50 million contribution to the ASEAN-India Fund at the 7th ASEAN-India Summit in 2009, to support the implementation of the ASEAN-India Plans of Action, which include cooperation in a variety of sectors as well as capacity building programmes in the political, economic, and socio-cultural spheres to deepen and intensify ASEAN-India cooperation. At the 14th ASEAN-India Summit in Vietnam in September 2016, PM recommended expanding the ASEAN-India Fund with an extra grant of US$ 50 million to advance development and capacity building activities. 

India has worked with ASEAN on several projects in the areas of agriculture, science and technology, space, environment and climate change, human resource development, capacity building, new and renewable energy, tourism, people-to-people connections and connectivity, and so on.

The establishment of tracking, data reception/processing station in Ho Chi Minh City, Vietnam, as well as the upgrade of the Telemetry Tracking and Command Station in Biak, Indonesia, are part of a space project. E-Network for the provision of telemedicine and tele-education in CLMV countries (Cambodia, Laos, Myanmar and Vietnam); Quick Impact Projects in CLMV network for the provision of telemedicine and tele-education in CLMV countries. Aside from the above projects, India has also been supporting ASEAN, particularly CLMV nations under the initiatives for ASEAN Integration, which focuses on the training of English language for Law Enforcement Officers in CLMV nations and training of experts managing capital business sectors in CLMV by the National Institute of Securities Management, Mumbai, which also provide grants for ASEAN understudies for advanced education at Nalanda University, training of ASEAN Civil Servants. 

The heads of Government recommended the establishment of the ASEAN-India Centre (AIC) at the Commemorative Summit in 2012, intending to promote the ASEAN-India Strategic Partnership through policy research, advocacy, and networking activities with organisations and think-tanks in India and ASEAN. The AIC, which was established in 2013, and has served as a resource centre for the ASEAN Member States and India to develop the ASEAN-India strategic partnership and promote India-ASEAN engagement and collaboration in areas of mutual interest. By organising seminars, roundtables, and other events, the AIC has provided advice to policymakers in India and ASEAN on the execution of ASEAN-India connectivity programmes. Workshops, seminars, and conferences on various topics related to the ASEAN-India strategic partnership are also held by the AIC. It engages in regular networking activities with relevant public/private agencies, organisations, and think tanks in India, ASEAN, and EAS (East Asia Summit) countries, intending to provide up-to-date information, data resources, and sustained interaction in order to promote the ASEAN-India Strategic Partnership.

In November 2007, India announced the establishment of an ASEAN-India Science and Technology Development Fund with a US$ 1 million commitment from India to support joint collaborative R&D projects in Science and Technology at the 6th ASEAN-India Summit in Singapore. The fund was established in 2009-10, and expenditures commenced in the fiscal year 2010-11. This fund has been increased to US$ 5 million from 2016 and 2017.

On November 21, 2007, at the 6th ASEAN-India Summit in Singapore, India announced the establishment of an ASEAN-India Green Fund, with a US$ 5 million initial commitment from India, to promote cooperative activities in the areas of environment and climate change. Climate change, energy efficiency, clean technologies, renewable energy, biodiversity conservation, environmental education, and other sectors have been highlighted for partnership under the Fund.

Question No. 2 - MCO-01 - Organisation Theory and Behaviour - Master of Commerce (M.Com)

Solutions to Assignments 

MCO-01 - Organisation Theory and Behaviour

Master of Commerce (M.Com) - 2nd Year 

Question No. 2 “Stress is psychological concept leading to both biological and behavioural disorders and is caused by a host of factors”. Discuss and explain the different stressors. 

Internal stress describes what people feel when they're under internal, physical, or emotional pressure. Although it's normal to taste some internal stress from time to time, people who taste high standings of internal stress or who taste it hourly over a long period of time may develop health problems ( internal and/ or physical).

Stress can be caused both by quotidian liabilities and routine events, as well as by fresh unusual events, parallel as a trauma or illness in oneself or a close family member. “Stress is psychological concept leading to both biological and behavioural disorders and is caused by a host of factors When people feel that they're unqualified to manage or control changes caused by cancer or normal life exertion, they're in torture. Torture has turn inchmeal honoured as a factor that can reduce the quality of life of cancer cases. There's yea some testimony that extreme torture is associated with poorer clinical products. Clinical guidelines are available to help croakers and nursers assess standings of torture and help cases manage it.

This fact length provides a general preface to the stress that people may see as they get by with cancer. More detailed information about specific interior conditions related to stress can be introduce in the Related Finances and Handpicked References at the end of this fact length.

The body responds to physical, interior, or emotional pressure by releasing stress hormones ( ditto as epinephrine and norepinephrine) that increase blood pressure, speed heart rate, and raise blood sugar reaches. These changes help a person act with junior strength and speed to escape a perceived peril.

Research has shown that people who taste intensive and long- term ( i.e., habitual) stress can have digestive problems, “Stress is psychological concept leading to both biological and behavioural disorders and is caused by a host of factors fertility problems, urinary problems, and a weakened pure system. People who feel bred-in-the-bone stress are also more prone to viral infections alike as the flu or common deep freeze and to have headaches, sleep trouble, depression, and anxiety.

Although stress can bring a number of physical health problems, the confirmation that it can bring cancer is weak. Some studies have indicated a link between colored cerebral factors and an increased danger of developing cancer, but others have not.

Apparent links between inner stress and cancer could arise in several ways. For exemplification, people under stress may develop certain bearings, comparable as smoking, gluttonousness, or drinking alcohol, which increase a person’s imminence for cancer. “Stress is psychological concept leading to both biological and behavioural disorders and is caused by a host of factors Or someone who has a relative with cancer may have a evolved imminence for cancer because of a participated inherited imminence factor, not because of the stress brought by the family member’s conclusion.

People who have cancer may find the physical, emotional, and social goods of the complaint to be stressful. Those who endeavor to manage their stress with hazardous bearings comparable as smoking or drinking alcohol or who get more sedentary may have a poorer quality of life after cancer treatment. In disparity, people who are competent to use effective faring strategies to deal with stress, comparable as relaxation and stress direction hows, have been shown to have lower places of depression, anxiety, and symptoms related to the cancer and its treatment. Notwithstanding, there's no documentation that successful direction of inner stress improves cancer survival.

Witness from experimental studies does suggest that mental stress can affect a neoplasm’s faculty to grow and spread. For specimen, some studies have shown that when mice bearing natural neoplasms were kept confined or sequestered from other mice — conditions that increase stress — their neoplasms were more likely to grow and spread (metastasize). “Stress is psychological concept leading to both biological and behavioural disorders and is caused by a host of factors In one set of trials, neoplasms reaped into the mammary fat pads of mice had much refined rates of spread to the lungs and lymph swellings if the mice were chronically stressed than if the mice weren't stressed. Studies in mice and in natural cancer cells grown in the laboratory have start that the stress hormone norepinephrine, part of the body’s fight-or-flight response system, may promote angiogenesis and metastasis.

In another study, women with triplex-negative soul cancer who had been treated with neo-adjuvant chemotherapy were asked about their use of beta blockers, which are specifics that snoop with certain stress hormones, anteriorly and during chemotherapy. “Stress is psychological concept leading to both biological and behavioural disorders and is caused by a host of factors Women who reported using beta blockers had a better chance of surviving their cancer treatment without a relapse than women who didn't report beta blocker use. There was no difference between the groups, notwithstanding, in terms of overall survival.

Although there's still no strong testament that stress directly affects cancer fruits, some data do suggest that cases can develop a sense of helplessness or despondence when stress becomes perceptible. This response is associated with high rates of death, although the factor for this fruit is unclear. It may be that people who feel helpless or hopeless don't seek treatment when they grow ill, give up unseasonably on or fail to hew to potentially helpful cure, engage in parlous conducts ditto as medicine use, or don't maintain a healthy life, reacting in precocious death.

Some expert consortia recommend that all cancer cases be screened for rack unseasonably in the course of treatment. “Stress is psychological concept leading to both biological and behavioural disorders and is caused by a host of factors A number also recommender at critical points along the course of care. Health care providers can use a variety of fishnet tools, ditto as a rack scale or questionnaire, to gauge whether cancer cases need help managing their passions or with other practical firms. Cases who show moderate to severe rack are normally bore to good finances, ditto as a clinical health psychologist, social worker, chaplain, or psychiatrist.

Stress is a psychological state of imbalance coupled with biological disorder. Individual experiences

deviation in his biological system which is called potential stress. Potential stress moderated by individual,

organisational and environmental variable leads to actual stress. The variables that convert potential stress

into actual stress are known as stressors. Thus, stressors can be intra- organisational and extra

organisational. Intra-organisational stress arises out of individual, group, and organisational factors. Extra

organisational factors relate to environment of the organisation. The intra organisational factors causing

stress are divided into individual factors and organisational factors. Let us learn them in detail.

1. Intra Organisational Factors

Individual Factors: Individual factors, which cause stress include: personality and individual differences,

family problems, economic problems, life styles and role demands.

i) Personality and individual differences: Individual basic dispositions are the main reason for potential stress. Introversion, extroversion, masculinity, rigidity, locus of control, personal life, demographic differences such as age, health, education and occupation are some of the reasons causing stress in individuals. It is found that type A personality is prone to more stress than type B personality.

Type A personality is characterised by emotion and sensitivity to organisation goals, competitive spirit and achievement oriented behaviour. This leads to frustration even for small deviations from the expectations, thus feeling of more stress. 

Type B personality is typically relaxed, carefree, patient and less serious in achieving objectives. Thus, he never feels stress. Some propositions of personality and individual stress are:

• Age is positively related to stress. When a person grows older, his expectations also go up. If he is unable to find avenues for realising expectations, he feels stress.

• Sound health enables a person to cope up stress better than unsound health.

• Education and health are related positively and negatively. Better education provides an opportunity to understand things in a better manner. Even the level of maturity increases with better education. So better educated persons are less prone to stress. Poorly educated people in relation to the jobs are likely to feel more stress due to the poor adaptability on the jobs.

• The nature of the occupation and stress are related. Certain occupations are inherently stressful than the other occupations. For instance, doctors, lawyers, politicians etc. At the same time occupation also gives enough stress tolerance ability. Politicians are found to posses more stress tolerance ability.

• Strong urge for satisfaction of needs compel people to over work and may lead to stress.

• Greater degree of locus of control leads to stress. A person is less likely to feel stress as he believes that he can exercise control over external factors.

• Self-efficacy and stress are negatively related. Higher degree of self-efficacy elevates motivation levels. Therefore people with greater self-efficacy remain calm and effectively face stressful situation. Perception of capacity to bring changes provides greater ability to withstand stress.

• Another personal disposition related to stress is psychological hardiness. Hardiness is the ability to withstand provocation from others. People with greater psychological hardiness are able to survive and withstand stressful environment. For instance, people who remain calm even at the provocation of others and ignore the esteem are less likely to feel stress.

Individual differences in perception, job experiences, social support, hostility etc., are some of the reasons

that cause stress.

• Perception helps in understanding the environment. Person possessing a positive perception understands reality and appraises the events objectively. Thus, he feels less stress.

• Job experience and stress are negatively related. As one gains experience he develops adaptability to various job and organisational demands. He realises the job expectations. He develops a mechanism to deal with stress situations. Therefore more experienced people remains cool, calm, and ignore stressors than young and inexperienced employees.

• Hostility and aggressive behaviour is positively related to stress. A person who becomes aggressive and

gets quick anger is cynical and does not trust others. He feels more stress than others who are cool and

calm.

ii) Family Problems: Family issues influence the personal life of individuals. Sound marital relationships, marital discipline, early and healthy children may lead to happy personal life. They enjoy the life and become positive in their attitudes. So they do not tend to greater stress. On the other hand, poor marital relationships, nagging wife, family separations, extra marital relationships, disturbing children, poor settlement of family members, aging parents, dual working couple, death of spouse or other close family member are some of the reasons for greater stress in the individuals.

iii) Economic Problems: Economic difficulties are the main cause of stress. Poor management of personal finances, heavy family expenditure, and constant demand for money, poor incoming earning capacity and slow financial growth in the job are some of the economic reasons responsible for greater stress. For instance, an increasing family expenditure, increased expenditure on children education and health create heavy demand for income. This creates greater stress in the individuals.

iv) Life Styles: Life Styles of individuals can cause stress. The following situations of life style cause stress:

• Sedentary life styles cause greater stress.

• Individuals experiencing certain unique situations may be compelled to alter their attitude, emotions and behaviour. These are known as life trauma. Life trauma is potential reason for stress.

• Faster career changes bring more responsibilities to the individuals. Persons occupying higher positions in the younger age are likely to get heart attacks due to greater stress. This is because of inability to adapt to the new carrier responsibilities.

v) Role Demands: Individuals play multiple roles in their personal life and organisations. In their personal life, they play the roles of family head, husband, father, brother and son. In social life they play the roles of club members, informal community group members, members of recreation groups, religious groups and a number of other social groups. Similarly in organisations, employees play the role of superior, subordinate, co-worker, union leader, informal group leaders etc. Incidentally, all these roles are performed simultaneously. Thus, they cause anxiety andemotion. Another potential reason is role conflict. It arises because of poor role perception, role ambiguity, role overload and role overlapping. Role ambiguity and stress are positively related. The greater the role conflict, individual experiences more stress.

Organisational Factors: An organisation is a combination of resources, goals, strategies, and policies. In

order to make people to work, organisations create structure, process and working conditions. In modern

organisations, number of factors create an environment of stress. The changing environmental dynamics,

globalisation, organisational adjustments like mergers and acquisitions lead to stress among employees. In

addition, a number of internal organisational factors cause employee stress. Some of them are poor working conditions, strained labour management relations, disputed resource allocations, co-employee behaviour, organisational design and policies, unpleasant leadership styles of the boss, misunderstandings in organisational communication, bureaucratic controls, improper motivation, job dissatisfaction, and less

attention to merit and seniority. Let us learn the organisational stressors in detail.

i) Working Conditions: Working conditions and stress are inversely related. Employees working with poor working conditions are subject to greater stress. The factors that lead to more stress are crowded work areas, dust, heat, noise, polluted air, strong odour due to toxic chemicals, radiation, poor ventilation, unsafe and dangerous conditions, lack of privacy etc.

ii) Organisational Tasks: Organisational tasks are designed to meet the objectives and goals. Poorly designed tasks lead to greater stress. Task autonomy, task inter-dependency, task demands, task overload are some of the potential reasons for stress in organisations. For instance greater the task interdependence, greater is the coordination required. This requires employees to adjust themselves to coworkers, superiors, and subordinates, irrespective of their willingness. They are expected to communicate, coordinate, exchange views, with other people irrespective of caste, creed, gender, religion and political differences. Lack of adjustment and poor tolerance to others lead to greater degree of stress.

iii) Administrative Policies and Strategies: Employee’s stress is related to certain administrative strategies followed by the organisations. Down sizing, competing pressure, unfair pay structures, rigidity in rules, job rotation and ambiguous policies are some of the reasons for stress in organisations.

iv) Organisational Structure and Design: As pointed out earlier organisational structure is designed to facilitate individual’s interaction in the realisation of organisational goals. Certain aspects of design like specialisation, centralisation, line and staff relationships, span of control, and organisational communication can severely create stress in organisations. For example, wider span of management compels the executive to manage large number of subordinates. This may create greater stress. Similarly, frequent line and staff conflict lead to obstacles in the work performance. Inability to resolve the conflicts lead to stress.

v) Organisation Process and Styles: A number of organisational processes are designed for meeting organisational goals. Communication process, control process, decision making process, promotion process, performance appraisal process, etc. are designed for realising organisational objectives. These processes limit the scope of functioning of employees. Improper design of various organisational processes leads to strained relationships among the employees. They may also cause de-motivation and job dissatisfaction. Consequently, employee feels stress in adapting to the processes.

vi) Organisational Leaderships: Top management is responsible for creation of a sound organisation

climate and culture by appropriate managerial style. The climate provided should be free of tensions, fear, and anxiety. Authoritarian leadership style creates a directive environment in which employees are pressurised to attain targets. They work under impersonal relationships and tight controls. This creates greater work stress to employees. On the other hand, a climate of warm and friendliness, scope for participation in decision making, non financial motivation and flexibility are encouraged under democratic leadership style. This relieves stress in the employees. Therefore, employees working under authoritarian leadership styles experience stress than employees working under democratic leadership style.

vii) Organisational Life Cycle: Every organisation moves through four phases of organisational life cycle. They are birth, growth, maturity and decline. In each of these stages the structure and the design of organisation undergoes frequent changes. In addition, human beings are subject to metamorphosis to adapt to the stages in the life cycle. In this process, employees are subject to job stress. For instance in the initial stages of organisational birth, stress is caused because of ambiguous policies and designs. In the growth stage, employees experience stress due to failure to meet conflicting demands. At the time of decline, stress is caused due to down sizing, retrenchment and loss of financial rewards and changing organisational systems.

viii) Group Dynamics: Groups are omni present in organisations. Groups arise out of inherent desire of human beings and spontaneous reactions of people. In organisations both formal groups and informal groups exist. A formal group exist in the form of committees, informal group exit among different levels of organisation. Groups have a number of functional and dysfunctional consequences. They provide social support and satisfaction, which is helpful in relieving stress. At the same time, they become the source of stress also. Lack of cohesiveness, lack of social support, lack of recognition by the group and incompatible goals cause stress.

Thus a number of organisational factors cause stress in the individuals.

Question No. 4 - IBO-03 - India’s Foreign Trade - Master of Commerce (M.Com)

Solutions to Assignments 

IBO-03 - India’s Foreign Trade

Master of Commerce (M.Com) - 1st Year 

Question No. 4 Write short notes: 
(a) Indian competitors in the export of electronic goods

(b) Potential of health services in India.

There exists a tremendous opportunity in the Indian healthcare industry. This is clearly borne out by the following:

- The size of the healthcare industry in India is just 5% of  the GDP, as compared to the United States, where this figure stands as high as 17%. In fact, healthcare is the largest industry in the USA.

- A study conducted by KSA Technopak, a leading global consulting firm indicates that in India, on an average, 11% of the annual household income is spent on healthcare . Not only this, 25% of the people believe that this figure is likely to go up.

- Further, the same study indicates that close to 68% of  the healthcare spending is on the day to day healthcare needs alone.

- The healthcare industry in India is expected to cross Rs.1000 billion in  the next three years.

- The Role of Consumerism 

The wave across various sectors in India has led to a more demanding consumer, whose awareness levels have risen significantly in the last few years. The consumer now has greater expectations and demands regarding the quality of healthcare.

This is especially true of the quality of primary healthcare services available in the country today. Given the backdrop of extremely high fragmentation, reliability and accessibility continue to be a distant dream. The consumer's current experience with a host of polyclinics and diagnostic centres, which have little regard for quality, has been disappointing.

Today's consumer is sensitive to both - care and cure - and is hungry for information. And he is willing to dig deeper into his pockets to get that extra reliability, reassurance and convenience.

There is only one logical conclusion to draw from all this. The healthcare industry, which is rightly perceived to be recession-proof, is set for unprecedented growth. And it offers some exciting opportunities in the area of primary and preventive healthcare.