Master of Business Administration MBA Semester 1 MB0038 Management Process and Organizational Behaviour - 4 Credits (Book ID:B1127) Assignment

Set- 1 Note: Each Question carries 10 marks. Answer all the questions.

Q1. Define emotional intelligence. Explain Golemans model of emotional intelligence. Ans: Emotional intelligence (EI) refers to the ability to perceive, control and evaluate emotions. Some researchers suggest that emotional intelligence can be learned and strengthened, while others claim it is an inborn characteristic. Since1990, Peter Salovey and John D. Mayer have been the leading researchers on emotional intelligence. In their influential article "Emotional Intelligence," they defined emotional intelligence as, "the subset of social intelligence that involves the ability to monitor one's own and others' feelings and emotions, to discriminate among them and to use this information to guide one's thinking and actions" (1990).
Goleman identified the five 'domains' of EQ as: 1. 2. 3. 4. 5. Knowing your emotions. Managing your own emotions. Motivating yourself. Recognizing and understanding other people's emotions. Managing relationships, i.e., managing the emotions of others.

Emotional Intelligence embraces and draws from numerous other branches of behavioural, emotional and communications theories, such as NLP (NeuroLinguistic Programming), Transactional Analysis, and empathy. By developing our Emotional Intelligence in these areas and the five EQ domains we can become more productive and successful at what we do, and help others to be more productive and successful too. The process and outcomes of Emotional Intelligence development also contain many elements known to reduce stress for individuals and organizations, by decreasing conflict, improving relationships and understanding, and increasing stability, continuity and harmony.

Q2. What are the hindrances that we face in perception? Ans: Perception is our sensory experience of the world around us and involves both
the recognition of environmental stimuli and actions in response to these stimuli. Through the perceptual process, we gain information about properties and elements

of the environment that are critical to our survival. Perception not only creates our experience of the world around us; it allows us to act within our environment. Individuals have a tendency to use a number of shortcuts when they judge others. An understanding of these shortcuts can be helpful toward recognizing when they can result in significant distortions. 1. Selective Perception Any characteristic that makes a person, object, or event stand out will increase the probability that it will be perceived. It is impossible for an individual to internalize and assimilate everything that is seen .Only certain stimuli can be taken in selectively. Selectivity works as a shortcut in judging other people by allowing us to speed-read others, but, not without the risk of drawing an inaccurate picture. The tendency to see what we want to see can make us draw unwarranted conclusions from an ambiguous situation. 2. Halo Effect The halo effect (Murphy & Anhalt, 1992) occurs when we draw a general impression on the basis of a single characteristic. For example, while appraising the lecturer, students may give prominence to a single trait, such as, enthusiasm and allow their entire evaluation to be tainted by how they judge the instructor on that one trait which stood out prominently in their estimation of that person. Research suggests that it is likely to be most extreme when the traits to be perceived are ambiguous in behavioral terms, when the traits have moral overtones, and when the perceiver is judging traits with which he or she has had limited experience. 3. Contrast Effects Individuals do not evaluate a person in isolation. Their reaction to one person is influenced by other persons they have encountered recently. For example, an interview situation in which one sees a pool of job applicants can distort perception. Distortions in any given candidates evaluation can occur as a result of his or her place in the interview schedule. 4. Projection This tendency to attribute ones own characteristics to other people which is called projection can distort perceptions made about others. When managers engage in projection, they compromise their ability to respond to individual differences. They tend to see people as more homogeneous than they really are.

5. Stereotyping Stereotypingjudging someone on the basis of our perception of the group to which he or she belongs. Generalization is not without advantages (Hilton & Hippel, 1996). It is a means of simplifying a complex world, and it permits us to maintain consistency. The problem, of course, is when we inaccurately stereotype. In organizations, we frequently hear comments that represent stereotypes based on gender, age, race, ethnicity, and even weight. From a perceptual standpoint, if people expect to see these stereotypes, that is what they will perceive, whether or not they are accurate. 6. First-impression errors Individuals place a good deal of importance on first impressions. First impressions are lasting impressions. We tend to remember what we perceive first about a person, and sometimes we are quite reluctant to change our initial impressions. Firstimpression error means the tendency to form lasting opinions about an individual based on initial perceptions. Primacy effects can be particularly dangerous in interviews, given that we form first impressions quickly and that these impressions may be the basis for long-term employment relationships.

Q3. Describe the bases of power. Ans: Positional Power this is the formal authority people get from their position in
an organization or society, often backed by policy or law. This is one form of power over. Reward Power this power depends upon the ability of the power wielder to give valued material rewards, such as money, benefits, time off, desired gifts, promotions or increases in pay or responsibility. In the development sector, this power is particularly held by donors and other intermediaries who distribute funding. It is also power over. Some donors who dispense funding do so out of a spirit of solidarity and deep humanity and are uneasy with this power, preferring to develop partnerships based on power with. There is a tension in here that has not been resolved in the development world, yet is seldom discussed between the givers and receivers of funding. Coercive Power this is the application of negative, fear-based influence on others. It might be based on any of the above power or even physical strength to ensure the obedience of those under power. Coercive power tends to be the most obvious but least effective form of power as it builds resentment and resistance. A covert form of

coercive power is the power of victims to use guilt to influence situations in their favour. Information power. Information is like resource power. A person with information can disclose the information selectively to people he wants to favour, and in this way exercise influence over them. Personal power resides in the individual and is independent of that individual's position. . Three bases of personal power are: 1. Expertise, 2. Rational persuasion, 3. Reference. 4. Charismatic Power Expert power is the ability to control another person's behavior by virtue of possessing knowledge, experience, or judgment that the other person lacks, but needs. A subordinate obeys a supervisor possessing expert power because the boss ordinarily knows more about what is to be done or how it is to be done than does the subordinate. Expert power is relative, not absolute. However the table may turn in case the subordinate has superior knowledge or skills than his/ her boss. In this age of technology driven environments, the second proposition holds true in many occasions where the boss is dependent heavily on the juniors for technologically oriented support. Rational persuasion is the ability to control another's behavior, since, through the individual's efforts; the person accepts the desirability of an offered goal and a viable way of achieving it. Rational persuasion involves both explaining the desirability of expected outcomes and showing how specific actions will achieve these outcomes. Referent power is the ability to control another's behavior because the person wants to identify with the power source. In this case, a subordinate obeys the boss because he or she wants to behave, perceive, or believe as the boss does. This obedience may occur, for example, because the subordinate likes the boss personally and therefore tries to do things the way the boss wants them done. In a sense, the subordinate attempts to avoid doing anything that would interfere with the pleasing bosssubordinate relationship. Followership is not based on what the subordinate will get

for specific actions or specific levels of performance, but on what the individual represents-a path toward lucrative future prospects. Charismatic Power is an extension of referent power stemming from an individual's personality and interpersonal style. Others follow because they can articulate attractive visions, take personal risks, demonstrate follower sensitivity, etc.

Q4. Explain sensitivity training. Ans: Sensitivity Training

Sensitivity training (also known as T-group, T standing for training) approach evolved from the group dynamics concept of Kurt Lewin and the first sensitivity training session was held in 1946 in State Teachers College, New Britain, USA. Since then, it spread to numerous training centers in USA and other countries. Sensitivity training is a small-group interaction process in the unstructured form which requires people to become sensitive to others feelings in order to develop reasonable group activity. The objectives of sensitivity training are as follows: To make participants increasingly aware of, and sensitive to, the emotional reactions and expressions in themselves and others. To increase the ability of participants to perceive, and to learn from, the consequences of their actions through attention to their own and others feelings. To stimulate the clarification and development of personal values and goals consonant with a democratic and scientific approach to problems of personal and social decisions and actions. To develop achievement of behavioural effectiveness in participants. To develop concepts and theoretical framework for linking personal values and goals to actions consistent with these inner factors and situational requirements. Process of Sensitivity Training Sensitivity training focuses on small group (T-group) with number of members ranging from ten to twelve. Based on the sources from where these members are drawn, there may be three types of T-group: stranger-lab, cousin-lab, and family-lab. In the stranger-lab, all participants are from different organizations and they are strangers to each other. In cousin-lab, all participants are from the same organization but from different units. They may know each other but not too well. Delbecq, has

described the sequential events which are followed in a T-group. These events run as follows: In the beginning, there is an intentional lack of directive leadership, formal agenda, and recognized power and status. This creates a behavioural vacuum which the participants fill with enormously rich projections of traditional behaviour. In the second phase, the trainer becomes open, non-defensive, and empathetic and expresses his or her own feelings in a minimally evaluative way. However, the major impact on each participant comes from the feedback received from here-and-now behaviour of the other group members. In the third phase, interpersonal relationships develop. The members serve as resources to one another and facilitate experimentation with new personal, interpersonal, and collaborative behaviour. The last phase attempts to explore the relevance of the ex perience in terms of back home situations and problems. The above sequence of events is more relevant for stranger-lab. For cousin-lab and family-lab, some adjustment is made in the above sequence and more attention is given to inter-group linkages in the form of interfacing of diagnostic surveys, interviews and confrontation session dealing with a variety of policy, problemsolving, and interpersonal issues. Evaluation of Sensitivity Training Sensitivity training has attracted lot of appraisal both in positive and negative forms. Therefore, it has become one of the most controversial techniques. To those who have criticized sensitive training, George Odiorne has incurred personal attacks on the following line of reasoning. The very fact that you attack sensitive training indicates that you are in favour of autocratic management and, therefore, need sensitivity training to straighten out your personal inadequacies. Though this may appear too personalized, this indicates that sensitivity training has positive effects on the participants. A comprehensive research review of OD interventions by Porras and Berg suggests that sensitivity training is the second most researched intervention (after team-building). However, it has the lowest rate of positive change in both processes (becoming sensitive to group process) and outcome (growth in effective membership) variables. Another research review by Nicholas, however, indicates positive impact of sensitivity training and it has done better than other techniques in terms of its impact on performance variables-workforce variables such as turnover,

absenteeism, grievances, etc; monetary variables such as profit and cost; and quality variables such as rejects, error rates, complaints, and returns. Positive Consequences In general, sensitivity training contributes in the following directions: Sensitivity training results in more supportive behaviour, more sensitive people, and more considerate managers. Participants to the training programme become more open and self-understanding. Communication is improved a lot and leadership skills are well- developed. It provides an opportunity to gain insight into personal blind spots and participants become aware of the group norms, role flexibility, and sense of belongingness. Negative Consequences Any behavioural training is double-edged sword. It may contribute positively if handled properly; it may damage if handled improperly. For example, those who criticize sensitivity training, offer the following reasons: Many participants of sensitivity training have reported a feeling of humiliation, manipulation, decline in self-confidence, and psychological damage. It incites anxiety with many negative impacts like causing the people to be highly frustrated, unsettled, and upset. Participants increased sensitivity may be continuing source of frustration and problem if they return to their workplace in which openness, trust, and sensitivity they were trained to espouse is frowned upon or repulsed.

Q5. Explain the different leadership styles as per Managerial Leadership Grid Theory. Answer:
The Managerial Grid was the original name which was the modifications were made by Robert R Blake and Anne Adams McCanse. After the modifications it was named as Leadership Grid Figure: Leadership Grid

Leadership Grid an approach to understanding a leaders concern for results (production) and concern for people The five major leadership styles specified as per Managerial Leadership Grid Theory: 1. The impoverished style (1, 1). The indifferent Leader (Evade & Elude) In this style, managers have low concern for both people and production. Managers use this style to avoid getting into trouble. The main concern for the manager is not to be held responsible for any mistakes, which results in less innovative decisions. A leader uses a delegate and disappear management style. Since they are not committed to either task accomplishment or maintenance; they essentially allow their team to do whatever it wishes and prefer to detach themselves from the team process by allowing the team to suffer from a series of power struggles. 2. The country club style (1, 9). The accommodating Leader (Yield & Comply) This style has a high concern for people and a low concern for production. Managers using this style pay much attention to the security and comfort of the employees, in hopes that this would increase performance. The resulting atmosphere is usually friendly, but not necessarily that productive. This person uses predominantly reward power to maintain discipline and to encourage the team to accomplish its goals. Conversely, they are almost incapable of employing the more punitive coercive and legitimate powers. This inability results from fear that using such powers could jeopardize relationships with the other team members. 3. The produce or perish style (9, 1). The Controlling Leader (Direct & Dominate) This believes in the authority-obedience. With a high concern for production, and a low concern for people, managers using this style find employee needs unimportant; they provide their employees with money and expect performance back. Managers using this style also pressure their employees through rules and punishments to

achieve the company goals. This dictatorial style is based on Theory X of Douglas McGregor, and is commonly applied by companies on the edge of real or perceived failure. This is used in case of crisis management. People who get this rating are very much task-oriented and are hard on their workers (autocratic). There is little or no allowance for co-operation or collaboration. Heavily task-oriented people display these characteristics: they are very strong on schedules; they expect people to do what they are told without question or debate; when something goes wrong they tend to focus on who is to blame rather than concentrate on exactly what is wrong and how to prevent it; they are intolerant of what they see as dissent (it may just be someones creativity), so it is difficult for their subordinates to contribute or develop. 4. The middle-of-the-road style (5, 5). The Status Quo Leader. (Balance & Compromise) It is Organization man management approach, which believes that the adequate organization performance is possible through balancing the necessity to get out wprk with maintaining morale of people at satisfactory level. Managers using this style try to balance between company goals and workers needs. By giving some concern to both people and production, managers who use this style hope to achieve acceptable performance. 5. The team style (9, 9). The Sound / Team Leader (Contribute & Commit) This is based on the aspect that work accomplishment is from committed people; interdependence through a common stake in the organization purpose leads to relationships of trust and respect. In this style, high concern is paid both to people and production. As suggested by the propositions of Theory Y, managers choosing to use this style encourage teamwork and commitment among employees. This method relies heavily on making employees feel as a constructive part of the company. This type of person leads by positive example and endeavors to foster a team environment in which all team members can reach their highest potential, both as team members and as people. They encourage the team to reach team goals as effectively as possible, while also working tirelessly to strengthen the bonds among the various members. They normally form and lead some of the most productive teams.

Q6. Mr. Suresh Kumar is the VP- HR of a leading Financial services company. He is having a meeting with Ms. Rejani Chandran leading HR consultant. Mr. Suresh is concerned about creating an environment that helps in increasing the job satisfaction amongst employees. Assume that you are Ms. Rejani, the HR consultant. What suggestions

you will give to Mr. Suresh, for creating an environment that increases job satisfaction. Ans :- Measuring Job Satisfaction: Job satisfaction is the sense of fulfillment and
pride felt by people who enjoy their work and do it well. For an organization, satisfied work force ensures commitment to high quality performance and increased productivity Job satisfaction helps organizations to reduce complaints and grievances, absenteeism, turnover, and termination. Job satisfaction is also linked to a healthier work force and has been found to be a good indicator of longevity. And although only little correlation has been found between job satisfaction and productivity, it has also been found that satisfying or delighting employees is a prerequisite to satisfying or delighting customers, thus protecting the "bottom line (Brown, 1996). The most important factors conductive to job satisfaction are: i) Mentally Challenging Work: Employees tend to prefer jobs that give them opportunities to use their skills and abilities and offer a variety of tasks, freedom and feedback on how well they are doing. Under conditions of moderate challenge, most employees will experience pleasure and satisfaction. ii) Personality-Job Fit: People with personality types congruent with their chosen vocations should find they have the right talents and abilities to meet the demands of their jobs; and because of this success, they have a greater probability of achieving high satisfaction from their work. It is important, therefore to fit personality factors with job profiles. iii) Equitable Rewards: Employees want pay systems and promotion policies that they perceive as being just, unambiguous, and in line with their expectations. When pay is seen as fair based on job demands, individual skill level, and industry pay standards, satisfaction is likely to result. Similarly, employees seek fair promotion policies and practices. Promotions provide opportunities for personal growth, more responsibilities and increased social status. Individuals who perceive that promotion decisions are made in a fair and just manner are likely to experience job satisfaction. iv) Supportive working conditions: Employees prefer physical conditions that are comfortable and facilitate doing a good job. Temperature, light, noise and other environmental factors should not be extreme and provide personal comfort. Further, employees prefer working relatively close to home, in clean and relatively modern facilities and with adequate tools and equipment.

v) Supportive Colleagues: Employees have need for social interaction. Therefore, having friendly and supportive co-workers and understanding supervisors leads to increased job satisfaction. Most employees want their immediate supervisor to be understanding and friendly, those who offer praise for good performance, listen to employees opinions and show a personal interest in them. vi) Whistle blowing: Whistle-blowers are employees who inform authorities of wrongdoings of their companies or co-workers. Whistle blowing is important because committed organizational members sometimes engage in unethical behaviour in an intense desire to succeed. Organizations can manage whistle blowing by communicating the conditions that are appropriate for the disclosure of wrongdoing. Clearly delineating wrongful behaviour and the appropriate ways to respond are important organizational actions. vii) Social Responsibility: Corporate social responsibility is the obligation of an organization to behave in ethical ways in the social environment in which it operates. Socially responsible actions are expected of organizations. Current concerns include protecting the environment, promoting worker safety, supporting social issues, investing in the community, etc. Managers must encourage both individual ethical behaviour and organizational social responsibility. Job enrichment: It is a deliberate upgrading of responsibility, scope, and challenge in the work itself. Job enrichment usually includes increased responsibility, recognition, and opportunities for growth, learning, and achievement. Large companies that have used job-enrichment programs to increase employee motivation and job satisfaction include, AT&T, IBM, and General Motors (Daft, 1997). Workers role in job satisfaction A worker should also take some responsibility for his or her job satisfaction. Everett (1995) proposed the following questions which employees ask themselves in regard to job satisfaction at the workplace: 1. When have I come closest to expressing my full potential in a work situation? 2. What did it look like? 3. What aspects of the workplace were most supportive? 4. What aspects of the work itself were most satisfying?

5. What did I learn from that experience that could be applied to the present situation? The following suggestions can help a worker find personal job satisfaction: 1. Seek opportunities to demonstrate skills and talents. 2. Develop communication skills. 3. Acquire job related skills and try to implement them. 4. Demonstrate creativity and initiative. 5. Improve team building and leadership skill. 6. Learn to de-stress.

Assignment Set- 2 Note: Each Question carries 10 marks. Answer all the questions. (Book ID:B1127)

Q1. What are the consequences of conflict in organization? Ans: As organizations strive to achieve their goals, they are often met with challenges they
must overcome as a team. Challenges leave room for conflict between members, other organizations, communities and other parties involved in the organizations mission. While conflict often has a negative connotation, the effects of conflict within an organization can be positive and negative. Mental Health Concerns Conflict within an organization can cause members to become frustrated if they feel as if theres no solution in sight, or if they feel that their opinions go unrecognized by other group members. As a result, members become stressed, which adversely affects their professional and personal lives. Organization members may have problems sleeping, loss of appetite or overeating, headaches and become unapproachable. In some instances, organization members may avoid meetings to prevent themselves from experiencing stress and stressrelated symptoms. Decrease in Productivity When an organization spends much of its time dealing with conflict, members take time away from focusing on the core goals they are tasked with achieving. Conflict causes members to focus less on the project at hand and more on gossiping about conflict or venting about frustrations. As a result, organizations can lose money, donors and access to essential resources. Members Leave Organization Organization members who are increasingly frustrated with the level of conflict within an organization may decide to end their membership. This is especially detrimental when members are a part of the executive board or heads of committees. Once members begin to leave, the organization has to recruit new members and appoint acting board members. In extreme cases, where several members leave or an executive board steps down, organizations risk dissolution. Violence When conflict escalates without mediation, intense situations may arise between organization members. Its unfortunate, but organizational conflicts may cause violence among members, resulting in legal problems for members and possibly the organization.

Inspire Creativity Fortunately, some organization members view conflict as an opportunity for finding creative solutions to solve problems. Conflict can inspire members to brainstorm ideas, while examining problems from various perspectives. Share and Respect Opinions As organization members work together to solve conflict, they are more willing to share their opinions with the group. Conflict can also cause members to actively listen to each as they work to accomplish the organizations goals. Improve Future Communication Conflict can bring group members together and help them learn more about each other. From learning each others opinions on topics relevant to the organizations growth to understanding each members preferred communication style, conflict within an organization can give members the tools necessary to easily solve conflicts in the future. Identify New Members Within organizations members actively participate in each meeting, enjoy serving on multiple committees and have an opinion on each topic the group discusses. There are also members who seemingly contribute little to the group and observe more than talk. Conflict within an organization can inspire typically silent members to step up and demonstrate their leadership skills by offering meaningful solutions to the problem the group is facing.

Q2

Write a note on the characteristics of Management.

Ans. Goal Oriented: Management is purposeful activity. It co-ordinates the efforts

of employees to achieve the goals of the organization. The success of management is measured by extent to which the organizational goals are achieved. It is imperative that the organizational goals must be we defined and properly understood by the management. Economic resource: Management is one of the factors production together with land, labour and capital. It is most critical input in the success of a organized group activity. It is the force which assembles and integrates other resources, namely, labor capital and materials. Distinct Process: Management is a distinct process consisting of such functions as planning, organizing, staffing a, directing and controlling. These functions are so interwoven that it is not possible to lay down exactly are sequence of various functions or their relative significance.

Interactive force: The essence of management is integration of human and other resources to achieve the desired objectives. All these resources are made available to those who manage. Intangible force: Management has been called an unseen force. Its presence is evidenced by the result if its effort-orderliness, informed employees, buoyant sprit and adequate work output. Results through others: The managers cannot do everything themselves. They must have the necessary ability and skills to get work accomplished through the efforts of others. A science and an Art: Management has an organized body of knowledge consisting of well defined concepts, principles and techniques which has wide applications. System of Authority: Management hand as a term if managers represents a system of authority, a hierarchy of command and control. Managers at different levels posses varying degrees of authority. Multi-disciplinary subject: Management has grown as a field of study taking the help of so many other disciplines such as engineering, anthropology, sociology, and psychology. Universal application: Management is universal in character. The principles and techniques of management are equally applicable on the field of business and hospital.

Q3. Explain the four processes of Social Learning Theory. Ans:

The Social Learning Theory was proposed by Albert Bandura. It recognizes the importance of observing and modeling the behaviors, attitudes, and emotional reactions of others. The four processes of Social Learning Theory are: 1. 2. 3. 4. Attention processes, Retention processes, Motor reproduction processes, Reinforcement processes

Attention processes: Social Cognitive Theory implies that you must pay attention for you to learn. If you want to learn from the behavior of the model (the person that demonstrates the behavior), then you should eliminate anything that catches your attention other than him. Also, the more interesting the model is, the more likely you are to pay full attention to him and learn.

Retention processes: The ability to store information is also an important part of the learning process. Retention can be affected by a number of factors, but the ability to pull up information later and act on it is vital to observational learning. Reproduction processes: Once you have paid attention to the model and retained the information, it is time to actually perform the behavior you observed. Further practice of the learned behavior leads to improvement and skill advancement. Reinforcement processes: Finally, in order for observational learning to be successful, you have to be motivated to imitate the behavior that has been modeled. Reinforcement and punishment play an important role in motivation. While experiencing these motivators can be highly effective, so can observing other experience some type of reinforcement or punishment? For example, if you see another student rewarded with extra credit for being to class on time, you might start to show up a few minutes early each day.

Q4. What are the 14 Principles of management of Henri Fayol?

Ans: Henri Fayol, a French industrialist, is now recognized as the Father of Modern Management. In year 1916 Fayol wrote a book entitled "Industrial and General Administration". In this book, he gave the 14 Principles of Management. These 14 principles of management are universally accepted and used even today. According to Henri Fayol, all managers must follow these 14 principles. Henri Fayol's 14 Principles of Management are briefly explained below. 1. Division of Work The full work of the organization should be divided among individuals and departments. This is because a division of work leads to specialization, and specialization increases efficiency, and efficiency improves the productivity and profitability of the organization. 2. Discipline Discipline means a respect for the rules and regulation of the organization. Discipline may be Self-discipline, or it may be Enforced discipline. Self-discipline is the best discipline. However, if there is no self-discipline, then discipline should be enforced through penalties, fines, etc. No organization can survive without discipline. 3. Authority and responsibility According to Henri Fayol, there should be a balance between Authority (Power) and Responsibility (Duties). Authority must be equal to Responsibility. If the authority is more than responsibility then chances are that a manager may misuse it. If responsibility is more than authority then he may feel frustrated.

4. Subordination of Individual Interest to General Interest In an organization, there are two types of interest, viz., the individual interest of the employees, and the general interest of the organization. The individual interest should be given less importance, while the general interest should be given most importance. If not, the organization will collapse. 5. Remuneration Remuneration is the price for services received. If an organization wants efficient employees and best performance, then it should have a good remuneration policy. This policy should give maximum satisfaction to both employer and employees. It should include both financial and non-financial incentives. 6. Centralisation In centralisation, the authority is concentrated only in few hands. However, in decentralisation, the authority is distributed to all the levels of management. No organization can be completely centralised or decentralised. If there is complete centralisation, then the subordinates will have no authority (power) to carry out their responsibility (duties). Similarly, if there is complete decentralisation, then the superior will have no authority to control the organization. Therefore, there should be a balance between centralisation and decentralisation. 7. Order There should be an Order for Things and People in the organization. Order for things is called Material Order. Order for people is called Social Order. Material Order refers to "a place for everything and everything in its place." Social Order refers to the selection of the "right man in the right place". There must be orderly placement of the resources such as Men and Women, Money, Materials, etc. Misplacement will lead to misuse and disorder. 8. Equity The managers should use the equity while dealing with the employees. Equity is a combination of kindness and justice. Equity creates loyalty and devotion in the employees. 9. Initiative Management should encourage initiative. That is, they should encourage the employees to make their own plans and to execute these plans. This is because an initiative gives satisfaction to the employees and brings success to the organization. 10. Esprit De Corps

Esprit de Corps means "Team Spirit". Therefore, the management should create unity, co-operation and team-spirit among the employees. They should avoid the divide and rule policy. 11. Stability of Tenure An employee needs time to learn his job and to become efficient. Therefore, he should be given time to become efficient. When he becomes efficient, he should be made permanent. In other words, the employees should have job security. 12. Unity of Direction All activities which have the same objective must be directed by one manager, and he must use one plan. This is called Unity of Direction. For example, all marketing activities such as advertising, sales promotion, pricing policy, etc., must be directed by only one manager. He must use only one plan for all the marketing activities. 13. Scalar Chain Scalar Chain is a line of authority. This line joins all the members (managers and employees) from top to bottom. Every member must know who is his superior. He must also know who is his subordinate. Scalar Chain is necessary for good communication. Scalar Chain must not be broken in norm circumstances. However, if quick action is necessary, then this chain can be broken. This is done using "Gang Plank" / "Bridge" / "Direct Contact". Scalar Chain is shown in diagram below with Gang plank as dotted line FP.

The Scalar Chain is shown by a double ladder A to G and A to Q. A is the head of the organization. B and L are the next level, and so on. If quick action is necessary, then a

"Gang Plank" "FP" is made. Now F and P can contact each other directly but they should inform E and O about their decisions. 14. Unity of Command According to this principle, a subordinate (employee) must have only one superior (boss or manager). A subordinate must receive orders from only one superior. In other words, a subordinate must report to only one superior. According to Fayol, if one subordinate receives orders from more than one superior then there will be disorder. This will affect the discipline, efficiency, productivity and profitability of the organization. Unity of Command is a very important principle of management. This principle is based on the rule "Too many cooks spoil the soup."

Q5. Distinguish between internal and external forces of change. Ans: Internal forces and External forces of change:
Internalforces Any change in organizations internal factors may also necessitate change. Such a change is required because of two reasons: change in managerial personnel and deficiency in existing organizational practices.

Change in the top management: Change in the top management and consequent change in the ideas to run the organization also leads to change in the system, structure and processes. Old managers are replaced by new managers which are necessitated because of retirement, promotion, transfer or dismissal. Each new manager brings his own ideas and way of working into the organization. The formal or informal relationships may change because of changes in top management. Moreover, attitudes, ideology, leadership style of the person may be different from the earlier one, this will reflect in their actions and decisions. The result is that an organization has to change accordingly. Change in size of the organization: Change in the organizations size leads to change in the internal structure and complexity of the operations in the organization. Performance gaps: When a gap between set target and actual results (in terms of market share, employee productivity and profit) is identified, organizations face the forces to change and reduce the gap. Employee needs and values: With changing needs and values of the employees, organizations change their policies. For example, attractive financial incentives, challenging assignments, vertical growth opportunities and autonomy at work may be provided in an organization to attract and retain its effective employees.

Deficiency in existing organization: Sometimes, changes are necessary because of deficiency in the present organizational arrangement and process. These deficiencies may be in the form of unmanageable span of management, large number of managerial levels, lack of co-ordination between various departments, obstacles in communication, multiplicity of committees, lack of uniformity in policy decisions, lack of co-operation between line and staff and so on.

2)External forces Each organization has goals and responsibility related to others in its environment. Thus, an organization must not only deal with its environment in conducting its affairs, but also give consideration to the goals of others, as it establishes its goals and conducts its operations. The present-day environment is dynamic and will continue to be dynamic. Changes in social, political, economic, technological, and legal environment force organizations to change themselves. Such changes may result in organizational changes like major functions, production process, labour-management relations, nature of competition, economic constraints, organization methods, etc. In order to survive in the changing environment, organization must change.

Technology: Technological changes are responsible for changing the nature of the job performed at all levels in an organization. When there is a change in technology in the organizations environment and other organizations adopt the new technology, the organization under focus becomes less cost-effective and its competitive position weakens. Therefore, it has to adopt new technology. When the organizations adopt a new technology, its work structures are affected and a new equilibrium has to be established. We have seen that technology has impact on organization structure, organizational processes, and behavior of people. For example, computers and automation have made significant impact on organizational functioning. Business scenario: Due to rapid changes in the business scenario with increasing competition and global economy, the needs and demands are also changing among the customers, suppliers and other stakeholders. Organizations are, therefore, forced to change their operational methods to meet the demands of the stakeholders. Since every organization exports its outputs to the environment, an organization has to face competition in the market. There may be two types of forces which may affect the competitive position of an organization, other organizations supplying the same products and, buyers who are buying the product. Any change in these forces may require suitable changes in the organization. For example, when Indian economy was liberalized (the process still continues), there were many foreign organizations which entered the Indian market. This forced many Indian organizations to re-align themselves with the new situation. The result is that there have been many cases of divesting the business and concentrating on the core business, acquiring core business, and developing competitive competence to face competitive threats. Similarly, there may be changes in

buyers in terms of their needs, liking-disliking, and income disposal for a product. These changes force the organizations to bring those products which meet buyers requirements. Environmental and National factors: Environmental factors such as economic, political and demographic and legal factors play a vital role in devising organizational policies and strategy. Any change in these political and legal factors may affect the organizational operation. For example, organizations may have to change their employment policies in accordance with the government policy, demand of the non-government organizations and changing economic conditions of a country. Social changes: Social changes reflect in terms of peoples aspirations, their needs, and their way of working. Social changes have taken place because of the several forces like level of education, urbanization, feeling of autonomy, and international impact due to new information sources. These social changes affect the behavior of people in the organization. Therefore it is required to make adjustment in its working so that it matches with people.

Q6. Ms. Chanchal Das Gupta is a recruitment specialist. For the post of QC Manager, she interviews three candidates. Given below are the physical characteristics of the candidates. Candidate Mr.Ravi Mr.Gineesh Mr.Ramgopal Physical Characteristics Muscular, thick skin, rectangular shaped. Thin, delicate build, large brain, tall. Soft, round shaped, underdeveloped muscles

From the above descriptions, what personality traits can Ms. Chanchal derive out of the candidates as per Sheldons theory of personality? Ans: Per Sheldon`s theory of personality, below are the traits that Ms. Chanchal can
derive: Mr. Ravi represents Mesomorph body type. He is well-proportioned. Psychologically he is Adventurous, Courageous, Indifferent to what others think or want, Assertive/bold, Zest for physical activity, Competitive, with a desire for power/dominance, And a love of risk/chance

Mr. Gineesh represents Ectomorph body type. Psychologically he is Self-conscious, Private, Introverted, Inhibited, Socially anxious, Artistic, Intense, Emotionally restrained, Thoughtful Mr. Ramgopal represents Endomorph body type. Psychologically he is Sociable, Fun-loving, Love of food, Tolerant, Even-tempered, Good humoured, Relaxed, With a love of comfort, And has a need for affection