IGNOU ASSIGNMENT SOLUTIONS - MCO-06 - MARKETING MANAGEMENT - MCOM - SEMESTER 2

                        IGNOU ASSIGNMENT SOLUTIONS

        MASTER OF COMMERCE (MCOM - SEMESTER 2)

               MCO-06 - MARKETING MANAGEMENT 

                         MCO-06/TMA/2022-2023

Please Note: 
These assignments are valid for two admission cycles (July 2022 and January 2023). The validity is given below: 
1. Those who are enrolled in July 2022, it is valid upto January 2023. (Term End Examinations in December 2022)
2. Those who are enrolled in January 2023, it is valid upto December 2023. (Term End Examinations in June 2023)

Question No. 1
What do you mean by Buyer Behavior? Discuss various social and Cultural factors which influence the buyer behavior?                                                         (20 Marks)

Solution: 

Buyer Behaviour simply means the decision and acts pursued by any buyer while purchasing any product or service. Another term for buyer behavior that is majorly used in the market of digital monetization is “consumer buying behavior,”.

It is the highlighted driving force behind any marketing campaign. But how it can benefit you or your business or why should you even care what is buyer behavior? The following reasons will make the significance of buyer behavior supremely certain:

• Buyer Behaviour helps you understand the dynamics behind any purchase done by the consumer regarding a wide range of products.
• It reveals substantial reasons behind the loyalty of consumers, for a specific brand or product.
• Also, it helps you in analyzing & predicting the demand of any service or product prior to its launch.
• Moreover, is the wizard’s wand when it comes to generating influential marketing campaigns.
• In addition to that, it makes your product or services more engaging & relatable to the target audience.

Social Factors affecting the Buyers Behaviour: 

The social factors affecting consumer behaviour includes the following components: -

a) Reference Groups

• We are social beings, and we always want to be around a group of people. There a few groups of people who are always around us, and they have a direct or indirect influence on our behaviour and attitudes. These are called the Reference Groups.

• Don't most of us used to want the bicycle that our friends used to have in our childhood? A few groups like family, friends, colleagues; with whom we interact regularly are called the Primary Groups. 

• On the other hand, we have few groups with whom we interact less and conversations are required to be formal; these groups are called the Secondary Groups. But how do these groups influence our behaviour as a consumer?

• The below mentioned three points will answer this better:

• Let's say, most of the times you get to know about the latest cool gadgets from your friends and colleagues only; this means that they expose us to new behaviours and lifestyle. 

• Now, you also need to have the same product. Hence, they influence our behaviour and self-image. 

• You want to buy that cool gadget from a few specific brands only; they create a pressure of conformity. 

• Apart from this, there are also certain groups to which you want to belong to but you are not currently a part of it. Suppose you cannot afford expensive designer clothes today but someday you want then that group which buys premium designer clothes is an Aspirational Group for you. Whereas, the groups whose values and attitudes we reject are called the dissociative groups. 

• Now, marketers reach and influence these groups through an Opinion leader; he is a person who informs and gives information about various products and brands to his group members. They have a good influence on their group members.

b) Cliques

• According to some communication researchers, our society comprises small groups, known as cliques, and their members interact with each other frequents. This scenario can be compared to the different clubs and committees in B-schools, where all the students from different clubs and committees (cliques) interact with each other.
• Now, as a promoter of any event of your B-school, you would want cliques to talk more about your event with each other. For that, you will find people who have networks in most of the cliques. These people are known as bridges.
• Many companies do pay money to influencers to promote their product in different cliques anonymously. This tactic is known as shill marketing or stealth marketing.
• You must have also heard that many of the reviews on digital platforms are being given by the people who are in some financial contract with the company. Another interesting example could be of some comedy shows where there are anonymous people who laugh while sitting in the audience.

c) Family

• This is the most important determinant in influencing the buying and deciding characteristics of consumers. We acquire a lot of values, attitudes, beliefs and perspectives from our family.
• In most of the Indian families, the women are considered to be the main purchasing member; hence they influence the buying decision the most. The marketers of specific products very cleverly target these women to promote their product.

d) Roles and Status

• All of us play multiple roles in lives, the roles that we play influences our behaviour and choices. The role that we play decides our "status". This also influences the kind of products and services that we use. Most of the times, we like those brands and products which relates to our identity that emerges from the kind of roles we play.
• You must have observed that people who are fit and muscular generally prefer to buy Royal Enfield among other bikes. This is nothing but a buying behaviour arising out of social factors.

Cultural Factors affecting the buyers behaviour: 

Culture includes race and religion, tradition, caste, moral values, etc. Culture also

include sub-cultures such sub-caste, religious Sects, language, etc.

a) Culture: 

• It influences consumer behaviour to a great extent. 
• Cultural values and elements are passed from one generation to another through family, educational institutions, religious bodies, social environment, etc. Cultural diversity influences food habits, clothing, customs and traditions, etc. 
• For instance, consuming alcohol and meat in certain religious communities is not restricted, but in certain communities, consumption of alcohol and meat is prohibited.

b) Sub-Culture: 

• Each culture consists of smaller sub-cultures that provide specific identity to its members. 
• Subcultures include sub-caste, religious sects geographic regions as South Indians, North Indians, and based on languages etc. 
• The behaviour of people belong to various sub-cultures is different. Therefore, marketers may adopt multicultural marketing approach, i.e., designing and marketing goods and services that cater to the tastes and preferences of consumers belonging to different sub-cultures.

 Conclusion 

Each and every person has his or her own behavior towards the purchasing process , however all of them are influenced by certain factors. Those influences may be environmental, social, personal, or psychological influences. But the cultural values are shared among the people in the society and affect them gradually over time. Besides the society has different impacts on one’s behavior depending on different groups to which it belongs. Each individual has their own effects varying from age or sex or the process of perceiving, motivating and memorizing. Those factors affect the consumer buying behavior so they should be considered. The consumers themselves are the decision makers and so are the most important factors in the consumer market. When a firm wants to enter in to a foreign market then the local customer behavior is probably different from customer behavior that they are dealing with the home country. Therefore it is important for the marketing manager to take all these factors into consideration, and helping them to develop marketing campaign in the international market and to improve the product to fully satisfy the customer which ultimately increase sales and develops in global level.

Question No. 2
What are the objectives of Pricing? Discuss the basic methods of Price Determination.                                                                                         (20 Marks) 

Solution: 

Pricing is a process of fixing the value that a manufacturer will receive in the exchange of services and goods. Pricing method is exercised to adjust the cost of the producer’s offerings suitable to both the manufacturer and the customer. The pricing depends on the company’s average prices, and the buyer’s perceived value of an item, as compared to the perceived value of competitors product.

Pricing objectives

Firms rely on price to cover the cost of production, to pay expenses, and to provide the profit incentive necessary to continue to operate the business. We might think of these factors as helping organizations to: (a) survive, (b) earn a profit, (c) generate sales, (d) secure an adequate share of the market, and (e) gain an appropriate image

a) Survival: It is apparent that most managers wish to pursue strategies that enable their organizations to continue in operation for the long term. So survival is one major objective pursued by most executives. For a commercial firm, the price paid by the buyer generates the firm’s revenue. If revenue falls below cost for a long period of time, the firm cannot survive.

b) Profit: Survival is closely linked to profitability. Making a USD 500,000 profit during the next year might be a pricing objective for a firm. Anything less will ensure failure. All business enterprises must earn a longterm profit. For many businesses, long-term profitability also allows the business to satisfy their most important constituents–stockholders. Lower-than-expected or no profits will drive down stock prices and may prove disastrous for the company.

c) Sales: Just as survival requires a long-term profit for a business enterprise, profit requires sales. As you will recall from earlier in the text, the task of marketing management relates to managing demand. Demand must be managed in order to regulate exchanges or sales. Thus marketing management’s aim is to alter sales patterns in some desirable way.

d) Market share: If the sales of Safeway Supermarkets in the Dallas-Fort Worth metropolitan area of Texas, USA, account for 30 per cent of all food sales in that area, we say that Safeway has a 30 per cent market share. Management of all firms, large and small, are concerned with maintaining an adequate share of the market so that their sales volume will enable the firm to survive and prosper. Again, pricing strategy is one of the tools that is significant in creating and sustaining market share. Prices must be set to attract the appropriate market segment in significant numbers.

e) Image: Price policies play an important role in affecting a firm’s position of respect and esteem in its community. Price is a highly visible communicator. It must convey the message to the community that the firm offers good value, that it is fair in its dealings with the public, that it is a reliable place to patronize, and that it stands behind its products and services.

Pricing Methods:

Pricing method is a technique that a company apply to evaluate the cost of their products. This process is the most challenging challenge encountered by a company, as the price should match the current market structure and also compliment the expenses of a company and gain profits. Also, it has to take the competitor’s product pricing into consideration so, choosing the correct pricing method is essential.

The pricing method is divided into two parts:

• Cost Oriented Pricing Method– It is the base for evaluating the price of the finished goods, and most of the company apply this method to calculate the cost of the product. This method is divided further into the following ways.
  • Cost-Plus Pricing- In this pricing, the manufacturer calculates the cost of production sustained and includes a fixed percentage (also known as mark up) to obtain the selling price. The mark up of profit is evaluated on the total cost (fixed and variable cost).
  • Markup Pricing- Here, the fixed number or a percentage of the total cost of a product is added to the product’s end price to get the selling price of a product.
  • Target-Returning Pricing- The company or a firm fix the cost of the product to achieve the Rate of Return on Investment.
• Market-Oriented Pricing Method- Under this category, the is determined on the base of market research
  • Perceived-Value Pricing- In this method, the producer establish the cost taking into consideration the customer’s approach towards the goods and services, including other elements such as product quality, advertisement, promotion, distribution, etc. that impacts the customer’s point of view.
  • Value pricing- Here, the company produces a product that is high in quality but low in price.
  • Going-Rate Pricing- In this method, the company reviews the competitor’s rate as a foundation in deciding the rate of their product. Usually, the cost of the product will be more or less the same as the competitors.
  • Auction Type Pricing- With more usage of internet, this contemporary pricing method is blooming day by day. Many online platforms like OLX, Quickr, eBay, etc. use online sites to buy and sell the product to the customer.
  • Differential Pricing- This method is applied when the pricing has to be different for different groups or customers. Here, the pricing might differ according to the region, area, product, time etc.

Question No. 3
Write short notes on the following: 
(a) Positioning 
(b) Warehousing 
(c) Personal Selling 
(d) Relationship Marketing.                                                                   (4×5 Marks)

Solution: 

(a) Positioning

Positioning refers to the place you want your brand or product to have within a particular target market. More specifically, the process of market positioning and brand positioning involves how you market your brand or product to consumers to achieve that position.

The aim of positioning in marketing is to establish or sway how consumers perceive you to gain a competitive advantage. A great positioning strategy elevates marketing efforts to help consumers move from knowing about a brand to deciding to purchase a product. And as positioning can sometimes be subtle, it’s usually easier to detect when viewing from the same angle as a consumer.

For example, look at Burger King’s brilliant advertisement “Why eat with the clown when you can dine with a king?”. Not only does it suggest that Burger King has a higher class of dining experience than McDonald’s, but it’s also an excellent example of how positioning in marketing operates.

Positioning requires ongoing marketing initiatives for the brand, which must also be maintained over the life of each product. Doing this when running a business also reinforces the target market’s perceptions of both the brand and the product.

Remember that every brand and product has a place somewhere within the market, whether you cultivate your position or not. Once you understand what is positioning in marketing, you can start taking control of your brand’s reputation and product image.

While there are a wide variety of options to consider, positioning strategies are typically broken down into three specific categories. These three types of positioning strategies are known as comparative, differentiation, and segmentation.

1. Comparative

This positioning strategy works by comparing multiple products or brands to create a competitive edge and highlight their individual value.

2. Differentiation

By focusing on any unique features which ideally can’t be duplicated, a differentiation positioning strategy ensures a brand’s products will stand out from the competition.

3. Segmentation

In situations where there are multiple target audiences, a segmentation positioning strategy focuses on the different specific needs of each group.

(b) Warehousing

Warehouse operations are the daily activities that prepare inventory for shipping, inventory tracking, and order fulfillment. Here are four crucial operational components of warehousing:

• Pick and Pack: A process of selecting one or more products that was ordered by a customer, checking it, and packaging it for shipping.
• Inventory Management: The inventory definition is tracking, measuring, updating, and retrieving products in a storage facility, including minimum and maximum quantities, stock-outs, and service level agreements.
• Order Fulfillment: The process of getting an order ready for shipment to a customer, and making sure it is shipped out as soon as possible.
• Warehouse Management System (WMS): A software program designed to oversee warehouse operations, inventory storage, demand forecasting, and daily efficiency.

Warehouse management is the process of managing inventory in a warehouse, including tracking quantities, monitoring expiration dates, and organizing products based on customer demand. It also includes managing the process of receiving and storing inventory, and finalizing orders for shipments.

Many retailers and eCommerce businesses choose to outsource their warehouse logistics, which is a smart choice since warehousing is less about transportation and distribution and more about inventory storage. Warehouse management software is an essential component of warehouse operations and warehouse services. It allows you to track stock and create alerts for low inventory levels.

Inventory management can also be done using radio frequency identification (RFID) tags and scanners, which lets you track items in real-time and quickly scan items once they get to the warehouse space.

(c) Personal Selling 

Personal selling should be part of a wider sales mix, alongside telesales, email marketing, sales promotion, advertising, and public relations. But personal selling must not be overlooked: it remains an extremely important part of a salesperson’s arsenal and is a skill every good salesperson must master.

Personal selling is a personalised sales method that employs person-to-person interaction between a sales representative and prospective customers to influence the customer’s purchase decision.

Precisely, it’s a promotional technique where a salesperson:

Uses person to person communication: Personal selling involves direct contact of the salesperson and the customer.

To sell an offering: The purpose of personal selling is to motivate and persuade the customer to purchase the intended offering a detailed explanation or demonstration of the product. 

Using a personalised sales strategy: This strategy involves the salesperson to understand the needs and wants of the customers, develop personalised connections, communicate the value of the offering in a way that persuades the customer to buy the offering.

Today, personal selling is considered a business-to-business selling technique but is also used in trade and retail sales.

With the advent of the internet and other communications methods, personal sales isn’t limited to just face-to-face meetings. Salespersons now use video calls, phone calls, IM, and even emails, along with in-person interactions to develop a relationship with prospective customers.

Personal selling differentiates itself from other sales and promotional techniques by possessing the following characteristics:

• Human contact: It involves person-to-person interaction where a seller interacts directly with the prospective customer and executes a personalised sales strategy according to the customer’s needs, wants, and expectations.
• Development of relationship: Personal selling involves developing a relationship between the seller and the buyer where trust is established, and the prospective buyer can rely on the salesperson. Moreover, this technique even results in the salesperson becoming a part of the buying process.
• Two-way flow of information: Unlike mass marketing, personal selling is characterised by a two-way flow of information. The prospective buyers get their chance to ask questions and clear their doubts directly from the seller before purchasing.
• Quick communication: Since personal selling involves person-to-person interaction, the communication flow is really quick.
• Flexibility: It involves the salesperson to tailor the sales pitch according to the prospective audience’s persona and requirements, making this sales tool flexible.
• Satisfaction: The process of personal selling requires the salesperson to understand the customer’s needs and satisfy the same by offering the customer the opportunity to buy something he has to offer.
• Persuasion: Personal selling isn’t just about informing prospective customers about the company’s offerings. It also involves using the power of persuasion to make customers accept the seller’s point of view or convince the customer to take a particular action.

(d) Relationship Marketing

Relationship marketing is a facet of customer relationship management (CRM) that focuses on customer loyalty and long-term customer engagement rather than shorter-term goals like customer acquisition and individual sales. The goal of relationship marketing (or customer relationship marketing) is to create strong, even emotional, customer connections to a brand that can lead to ongoing business, free word-of-mouth promotion and information from customers that can generate leads.

Relationship marketing stands in contrast to the more traditional transactional marketing approach, which focuses on increasing the number of individual sales. In the transactional model, the return on customer acquisition cost may be insufficient. A customer may be convinced to select that brand one time, but without a strong relationship marketing strategy, the customer may not come back to that brand in the future.

While organizations combine elements of both relationship and transactional marketing, customer relationship marketing is starting to play a more important role for many companies.

Acquiring new customers can be challenging and costly. Relationship marketing helps retain customers over the long term, which results in customer loyalty rather than customers purchasing once or infrequently.

Relationship marketing is important for its ability to stay in close contact with customers. By understanding how customers use a brand's products and services and observing additional unmet needs, brands can create new features and offerings to meet those needs, further strengthening the relationship.

Relationship marketing is based on the tenets of customer experience management (CEM), which focuses on improving customer interactions to foster better brand loyalty. While these interactions can still occur in person or over the phone, much of relationship marketing and CEM has taken to the web.

With the abundance of information on the web and flourishing use of social media, most consumers expect to have easy, tailored access to details about a brand and even expect the opportunity to influence products and services via social media posts and online reviews. Modern relationship marketing involves creating easy two-way communication between customers and the business, tracking customer activities and providing tailored information to customers based on those activities.

For example, an e-commerce site might track a customer's activity by allowing them to create a user profile so that their information is conveniently saved for future visits and so that the site can push more tailored information to them next time. Site visitors might also be able to sign in through Facebook or another social media channel, allowing them a simpler user experience and automatically connecting them to the brand's social media presence.

This is where CRM and marketing automation software can support a relationship marketing strategy by making it easier to record, track and act on customer information. Social CRM tools go further by helping to extend relationship marketing into the social media sphere, allowing companies to more easily monitor and respond to customer issues on social media channels, which in turn helps maintain a better brand image.

Question No. 4
Differentiate between the following 
(a) Consumer goods and Industrial goods 
(b) Selective and Intensive Distribution 
(c) Advertising and Publicity 
(d) Selling and Marketing                                                                       (4×5 Marks) 

Solution: 

(a)

Industrial goods are materials used in the production of other goods, while consumer goods are finished products that are sold to and used by consumers. Industrial goods are bought and used for industrial and business use. They are made up of machinery, manufacturing plants, raw materials, and any other good or component used by industries or firms. Consumer goods are ready for the consumption and satisfaction of human wants, such as clothing or food.

Industrial Goods

Industrial goods are based on the demand for the consumer goods they help to produce. Industrial goods are classified as either production goods or support goods. Production goods are used in the production of a final consumer good or product, while support goods help in the production process of consumer goods such as machinery and equipment.

Unlike consumer goods, which are purchased by the general public, there are very specific buyers of industrial goods. They include component part buyers such as car manufacturers, those who purchase and install machinery, and distributors or anyone else who buys for resale.

Characteristics of industrial goods include:

Rational buying power: The decision and drive to buy industrial goods is rational compared to consumer goods, which are primarily purchased because of an emotional need.

Complex product lines: Industrial goods are usually complex in nature because they can be highly technical. Those who use them must be highly skilled.

Higher purchase value: Industrial goods typically come with a higher price tag because of their complex nature and limited target market.

High level of investment: Those who need to will often invest a lot of money to purchase industrial goods.

Companies involved in the industrial goods sector represent a variety of industries including (but not limited to) machinery, construction, defense, aerospace, and housing.

Consumer Goods

Consumer goods are tangible commodities produced and purchased to satisfy the wants of a buyer. That's why these goods are also referred to as final goods or end products. They are goods that consumers can typically find stocked on store shelves. As such, they can be purchased for use at home, school, or work or for recreational or personal use. Consumer goods are divided into three different types: Durable goods, non-durable goods, or consumer services.

Durable goods have a significant lifespan of three or more years. The consumption of a durable good is spread out over the entire life of the good, which causes demand for maintenance and upkeep. Bicycles, furniture, and cars are examples of durable goods.

Non-durable goods are purchased for immediate consumption or use. These goods generally have a lifespan of fewer than three years. Food, beverages, and clothing are examples of non-durable goods.

Consumer services are also intangible products or services produced and consumed at the same time. Haircuts and car washes are typical examples of consumer services.

Because of consumer buying patterns, consumer goods are typically classified into four different categories including convenience, shopping, specialty, and unsought goods.

Convenience goods: These products are ready to be purchased. Milk is one example of a convenience good.

Shopping goods: These goods require more planning and thought during the purchasing process by consumers. This category includes products like electronics and furniture.

Specialty goods: This category, which includes jewelry, is composed of goods that are deemed to be luxuries.

Unsought goods: Unsought goods require a niche market and are typically purchased by only a few members in the market, such as life insurance.

(b)

Intensive Distribution:

Intensive distribution aims to provide saturation coverage of the market by using all available outlets. For many products, total sales are directly linked to the number of outlets used (e.g., cigarettes, beer). Intensive distribution is usually required where customers have a range of acceptable brands to choose from. In other words, if one brand is not available, a customer will simply choose another.

This alternative involves all the possible outlets that can be used to distribute the product. This is particularly useful in products like soft drinks where distribution is a key success factor. Here, soft drink firms distribute their brands through multiple outlets to ensure their easy availability to the customer.

Hence, on the one hand these brands are available in restaurants and five star hotels and on the other hand they are also available through countless soft drink stalls, kiosks, sweetmarts, tea shops, and so on. Any possible outlet where the customer is expected to visit is also an outlet for the soft drink.

Selective Distribution:

Selective distribution involves a producer using a limited number of outlets in a geographical area to sell products. An advantage of this approach is that the producer can choose the most appropriate or best-performing outlets and focus effort (e.g., training) on them. Selective distribution works best when consumers are prepared to “shop around” – in other words – they have a preference for a particular brand or price and will search out the outlets that supply.

This alternative is the middle path approach to distribution. Here, the firm selects some outlets to distribute its products. This alternative helps focus the selling effort of manufacturing firms on a few outlets rather than dissipating it over countless marginal ones.

It also enables the firm to establish a good working relationship with channel members. Selective distribution can help the manufacturer gain optimum market coverage and more control but at a lesser cost than intensive distribution. Both existing and new firms are known to use this alternative.

(c)

Advertising is a one-way public communication that conveys a message regarding a product, service or company to the viewers, readers, and listeners. It is the biggest marketing tool used for non-personal promotion of goods and services to the potential customers, however, the most expensive one.

Advertising is a sort of monolog activity done with an aim to induce customers i.e. to grab the attention of the target audience in such a manner that they are ready to buy the advertised product. The basic objective of advertising is to increase the consumption of the product of the sender company.

Most of the company’s use this sales promotional tool because of its reach, a single message can reach millions of people in nanoseconds. It is a paid announcement by sponsors, which can be done with various mediums like radio, television, websites, newspapers, hoardings, magazines, social media like Facebook, etc.

Although, we should not trust the advertisement blindly because some of them are false or misleading one that does not give complete information about the product. It is just a technique of branding whereby a product is highlighted by its few qualities, to leave an impact on the consumer’s mind.

Definition of Publicity

The term publicity is a combination of two words public and visibility. It refers to the flow of information or fact, regarding general awareness about a subject or hot topic or any burning issue. Here the subject may include a person, product, service, business entity and so on. It is used to draw the attention of the people, for any subject with the help of broadcast media, print media or social media. It is not a promotional technique and thus free of cost.

Publicity can be printed or just aired. It is either be positive or negative, but it is true and real as well.  It is an entirely unbiased opinion as it comes from an independent source like it can be given by an expert or a common man or mass media. As the third party has nothing to do with the company, their responses and reviews are given high weight.

However, it can be seen many times that rivals use this tool deliberately like they spread false rumors to injure the image of the company and ruin its market position too. Positive publicity boosts the consumption while the negative hampers the same.

Key Differences Between Advertising and Publicity

The following are the differences between advertising and publicity:

Advertising is to advertise a product or service of a company, for commercial purposes. Publicity is to publicize a product, service or company to provide information.

Advertising is what a company says about its own product, but Publicity is what others says about a product.

There is a huge investment to be made for advertising a single product however publicity does not require such kind of investment.

The key persons behind advertising are the company and its representatives. Conversely, Publicity is done by a third party which is not related to any company.

Advertising is under the control of the company which is just opposite in the case of publicity.

Advertising repeatedly occurs to grab the attention of the customers while Publicity is done only one-time act.

Advertising is always customer focused, i.e. the more creative the advertise, the more are the customers attracted to it while publicity is not done keeping such things in mind.

As advertising is done to promote a brand or a product so the credibility and reliability are relatively less in comparison to publicity, where the opinion comes from an independent source.

Advertising always speaks the goodness about a product, to persuade the target audience to buy it. In contrast to publicity, it is unbiased, and so it will speak the reality, no matter whether it is goodness or illness.

(d) 

1. Selling :

Selling refers to creating products and selling them to customers. It revolves around the needs and interest of the seller. It is a only an integrated part of the marketing process as its only focus is to manufacture product first and then selling them to customer and it is sales volume oriented not much concern about customer’s satisfaction. It views customer as the last link in business. Selling seeks to convert product into cash. In selling sell is the primary motive and it is more internal company oriented. It is based on inside-out perspective.

2. Marketing :

Marketing refers to finding wants of people/customer and fill them. It revolves around the needs and interest of the consumer. It is a wider term consisting of number of activities like identifying the market first, customer’s needs, product development to meet customer’s need, fixing price and then selling the product to the customer. It views the customer as the very purpose in business. Marketing seeks to convert customer needs into products. In marketing customer satisfaction is the primary motive and it is more external market oriented. It is based on outside-in perspective.

Difference between Selling and Marketing :

S.No.	SELLING	MARKETING
01.	Selling refers to creating products and selling them to customers.	Marketing refers to finding wants of people/customer and fill them.
02.	Selling revolves around the needs and interest of the seller.	Whereas Marketing revolves around the needs and interest of the consumer.
03.	It emphasis more on product or service.	It emphasis more on consumer needs and wants.
04.	Selling is a only an integrated part of the marketing process.	While marketing is a wider term consisting of number of activities.
05.	Selling is based on short term business planning.	Marketing is based on long term business planning.
06.	It manufactures the product first.	It identifies the market first.
07.	It is sales volume oriented.	It is customer satisfaction with profit oriented.
08.	It views business as a goods producing and selling process.	It views business as a consumer satisfying process.
09.	Here seller is considered as king pin of market.	Here consumer is considered as king pin of market.

Question No. 5
Comment briefly on the following statement: 
(a) “Rural marketing in India offer huge opportunities and throw challenges to marketers”. 
(b) “The basic purpose of marketing research is to facilitate decision making process”. 
(c) “The rate of failure of new products is very high”. 
(d) “Market Communication plays an important role in a company’s overall marketing program”.                                                                                 (4×5 Marks)

Solution: 

Fundamentals of Investment (FOI) DU for Bcom/ Bcom(Hons) - Past Examination Questions With Solutions

Delhi University

Past Year Questions Discussions

Fundamentals of Investment (FOI)

Bcom/ Bcom(Hons) - Semester 6

You can join us on Telegram for doubts clearance and also getting the pdf's of the discussed questions through the following invitation link -

https://t.me/+PeKHFR8YvM9mZmY1

You can also follow us on Youtube - 

https://www.youtube.com/@OasisAcademyOfeducation/featured

UNIT - 1 - RISK & RETURN

PART 1

You can join us on Telegram for doubts clearance and also getting the pdf's of the discussed questions through the following invitation link -

https://t.me/+PeKHFR8YvM9mZmY1

You can also follow us on Youtube - 

https://www.youtube.com/@OasisAcademyOfeducation/featured

UNIT 1 - RISK & RETURN 

PART 2 

You can join us on Telegram for doubts clearance and also getting the pdf's of the discussed questions through the following invitation link -

https://t.me/+PeKHFR8YvM9mZmY1

You can also follow us on Youtube - 

https://www.youtube.com/@OasisAcademyOfeducation/featured

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.

Question No. 5 - MMPC-007 - Business communication - MBA and MBA (Banking & Finance)

Solutions to Assignments

                            MBA and MBA (Banking & Finance)

MMPC-007 - Business communication

MMPC-007/TMA/JULY/2022

Question No. 5                               
Discuss the Hofstede’s cultural dimension model with respect to cross cultural communication.

Hofstede’s Cultural Dimensions Theory, developed by Geert Hofstede, is a framework used to understand the differences in culture across countries and to discern the ways that business is done across different cultures. In other words, the framework is used to distinguish between different national cultures, the dimensions of culture, and assess their impact on a business setting.

Hofstede’s Cultural Dimensions Theory was created in 1980 by Dutch management researcher Geert Hofstede. The aim of the study was to determine the dimensions in which cultures vary.

Hofstede’s Cultural Dimensions Theory

Hofstede identified six categories that define culture:

1. Power Distance Index
2. Collectivism vs. Individualism
3. Uncertainty Avoidance Index
4. Femininity vs. Masculinity
5. Short-Term vs. Long-Term Orientation
6. Restraint vs. Indulgence
7. Power Distance Index

Power Distance Index

The power distance index considers the extent to which inequality and power are tolerated. In this dimension, inequality and power are viewed from the viewpoint of the followers – the lower level.

• A high power distance index indicates that a culture accepts inequity and power differences, encourages bureaucracy, and shows high respect for rank and authority.
• A low power distance index indicates that a culture encourages flat organizational structures that feature decentralized decision-making responsibility, participative management style, and emphasis on power distribution.

Individualism vs. Collectivism

The individualism vs. collectivism dimension considers the degree to which societies are integrated into groups and their perceived obligations and dependence on groups.

• Individualism indicates that there is a greater importance placed on attaining personal goals. A person’s self-image in this category is defined as “I.”
• Collectivism indicates that there is a greater importance placed on the goals and well-being of the group. A person’s self-image in this category is defined as “We.”

Uncertainty Avoidance Index

• The uncertainty avoidance index considers the extent to which uncertainty and ambiguity are tolerated. This dimension considers how unknown situations and unexpected events are dealt with.
• A high uncertainty avoidance index indicates a low tolerance for uncertainty, ambiguity, and risk-taking. The unknown is minimized through strict rules, regulations, etc.
• A low uncertainty avoidance index indicates a high tolerance for uncertainty, ambiguity, and risk-taking. The unknown is more openly accepted, and there are lax rules, regulations, etc.

Masculinity vs. Femininity

The masculinity vs. femininity dimension is also referred to as “tough vs. tender” and considers the preference of society for achievement, attitude toward sexuality equality, behavior, etc.

• Masculinity comes with the following characteristics: distinct gender roles, assertive, and concentrated on material achievements and wealth-building.
• Femininity comes with the following characteristics: fluid gender roles, modest, nurturing, and concerned with the quality of life.

Long-Term Orientation vs. Short-Term Orientation

The long-term orientation vs. short-term orientation dimension considers the extent to which society views its time horizon.

• Long-term orientation shows focus on the future and involves delaying short-term success or gratification in order to achieve long-term success. Long-term orientation emphasizes persistence, perseverance, and long-term growth.
• Short-term orientation shows focus on the near future, involves delivering short-term success or gratification, and places a stronger emphasis on the present than the future. Short-term orientation emphasizes quick results and respect for tradition.

Indulgence vs. Restraint

The indulgence vs. restraint dimension considers the extent and tendency for a society to fulfill its desires. In other words, this dimension revolves around how societies can control their impulses and desires.

Indulgence indicates that society allows relatively free gratification related to enjoying life and having fun.

Restraint indicates that society suppresses gratification of needs and regulates it through social norms.