Name Roll No Learning Centre Subject Assignment Date of Submission at the learning centre

Deepak Kikan 571121390 00964 Management Process and Organizational Behaviour 1 and 2

Master of Business Administration Semester I MB0038 Management Process and Organizational Behaviour - 4 Credits (Book ID:B1127) Assignment Set- 1 (60 Marks)

Q1. Explain the four processes of Social Learning Theory. Ans: The social learning theory recognizes the importance of observing and modeling the behaviors, attitudes, and emotional reactions of others. Social learning has four processes: 1. Attention processes People learn from a model only when they recognize and pay attention to its critical features. In order to learn, it is required to pay attention. Anything that detracts the attention is going to have a negative effect on observational learning. If the is model interesting or there is a novel aspect to the situation, it is more likely to dedicate the full attention to learning.

2. Retention processes A models influence will depend on how well the individual remembers the models action after it is no longer readily available. The ability to store information is also an important part of the learning process. Retention can be affected by a number of factors, but the ability to pull up information later and act on it is vital to observational learning. 3. Motor reproduction processes After a person has seen a new behavior by observing the model, the watching must be converted to doing. The ability to perform what is observed is very important part of the learning process. Retention is improved by performing or doing what is learnt from observation process. Reproduction helps in retention and ability to pull up information later. 4. Reinforcement processes Individuals will be motivated to exhibit the modeled behavior if positive incentives or rewards are provided. Finally, in order for observational learning to be successful, you have to be motivated to imitate the behavior that has been modeled. Reinforcement and punishment play an important role in motivation. While experiencing these motivators can be highly effective, so is 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. Q2. What are the hindrances that we face in perception? Ans: Perception can be defined as a process by which individuals organize and interpret their sensory impressions in order to give meaning to their 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 error 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. First-impression 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: Power is the ability to make things happen in the way an individual wants, either by self or by the subordinates. The essence of power is control over the behavior of others (French & Raven, 1962).

Power can be categorized into two types: Formal and informal A. Formal Power: It is based on the position of an individual in an organization. Formal power is derived from either ones ability to coerce or reward others or is derived from the formal authority vested in the individual due to his/ her strategic position in the organizational hierarchy. For example, a manager may threaten to withhold a pay raise, or to transfer, demote, or even recommend the firing of a subordinate who does not act as desired. Such coercive power is the extent to which a manager can deny desired rewards or administer punishments to control other people. The availability of coercive power also varies across organizations. The presence of unions and organizational policies on employee treatment can weaken this power base significantly. Formal power may be categorized into four types which are as follows: 1. Coercive Power: The coercive power base is being dependent on fear. It is based on the application, or the threat of application, of physical sanctions such as the infliction of pain, the generation of frustration through restriction of movement, or the controlling by force of basic physiological or safety needs. In an organization one can exercise power over another if they have the power to dismiss, suspend, demote another assuming that the job is valuable to the person on whom power is being unleashed. 2. Reward Power: The opposite of coercive power is reward power. Reward power is the extent to which a manager can use extrinsic and intrinsic rewards to control other people. Examples of such rewards include money, promotions, compliments, or enriched jobs. Although all managers have some access to rewards, success in accessing and utilizing rewards to achieve influence varies according to the skills of the manager. 3. Legitimate Power: The third base of position power is legitimate power, or formal authority .It stems from the extent to which a manager can use subordinates internalized values or beliefs that the boss has a right of command to control their behavior. For example, the boss may have the formal authority to approve or deny such employee requests as job transfers, equipment purchases, personal time off, or overtime work. Legitimate power represents a special kind of power a manager has because subordinates believe it is legitimate for a person occupying the managerial position to have the right to command. The lack of this is legitimacy will result in authority not being accepted by subordinates. Thus this type of power has the following elements: It represents the power a person receives as a result of his/her position in the formal hierarchy. Positions of authority include coercive and reward powers.

Legitimate power, however, is not limited to the power to coerce and reward. It encompasses the acceptance of the authority of a position by members of an organization.

4. Information Power: This type of power is derived from access to and control over information. When people have needed information, others become dependant on them. (For example, managers have access to data that subordinates do not have). Normally the higher the level, the more information would be accessed by managers. B. Personal Power Personal power resides in the individual and is independent of that individuals position. Three bases of personal power are expertise, rational persuasion, and reference. Expert power is the ability to control another persons behavior by virtue of possessing knowledge, experience, or judgment that the other person lacks, but needs. A subordinate obeys a supervisor possessing expert power because the boss ordinarily knows more about what is to be done or how it is to 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 anothers behavior, since, through the individuals 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 anothers behavior because the person wants to identify with the power source. In this case, a subordinate obeys the boss because he or she wants to behave, perceive, or believe as the boss does. This obedience may occur, for example, because the 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 boss subordinate relationship. Followership is not based on what the subordinate will get for specific actions or specific levels of performance, but on what the individual represents a path toward lucrative future prospects. Charismatic Power is an extension of referent power stemming from an individuals personality and interpersonal style. Others follow because they can articulate attractive visions, take personal risks, demonstrate follower sensitivity, etc.

Q4. 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 Physical Characteristics Mr.Ravi Muscular, thick skin, rectangular shaped. Mr.Gineesh Thin, delicate build, large brain, tall. Mr.Ramgopal 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: William Sheldon (1940, 1942, cited in Phares, 1991) classified personality according to body type. He called this a persons somatotype. Sheldon identified three main somatotypes: Table: Sheldons Classification of Personality Types. Sheldon's Character Shape Somatotype Endomorph relaxed, sociable, plump, buxom, developed [viscerotonic] tolerant, comfortvisceral structure loving, peaceful Sample Picture

Mesomorph [somatotonic]

active, assertive, vigorous, combative

muscular

Ectomorph [cerebrotonic]

quiet, fragile, restrained, nonassertive, sensitive

lean, delicate, poor muscles

As per the description given in the question, the somatotypes of the three candidates are the following: Candidate Physical Characteristics Somatotype Mr.Ravi Muscular, thick skin, rectangular Mesomorph [somatotonic] shaped. Mr.Gineesh Thin, delicate build, large brain, Ectomorph [cerebrotonic] tall. Mr.Ramgopal Soft, round shaped, Endomorph [viscerotonic] underdeveloped muscles. As per Sheldon, these body types have the following corresponding personality traits: Candidate Mr.Ravi Somatotype Mesomorph [somatotonic] Personality traits adventurous desire for power and dominance courageous indifference to what others think or want assertive, bold zest for physical activity competitive love of risk and chance self-conscious preference for privacy introverted inhibited socially anxious artistic mentally intense emotionally restrained love of food tolerant evenness of emotions love of comfort sociable good humoured relaxed need for affection

Mr.Gineesh

Ectomorph [cerebrotonic]

Mr.Ramgopal Endomorph [viscerotonic]

So Ms Chanchal can derive out the personality traits based on the information presented in the table above. Q5. What are the consequences of conflict in organisations? Ans: Conflict occurs whenever disagreements exist in a social situation over issues (work related or personal). Conflict is a process that begins when one party perceives that

another party has negatively affected, or is about to negatively affects, something that the first party cares about (Thomas, 1992). Conflict can be either constructive or destructive. Constructive conflict prevents stagnation, stimulates creativity, allows tensions to be released. However, excessive levels of conflict can hinder the effectiveness of a group or an organization lessens satisfaction of group members, increases absence and turnover rates, and, lowers productivity. Not all conflicts are bad. In fact, some types of conflict encourage new solutions to problems and enhance the creativity in the organizations. In these cases, managers will want to encourage the conflicts. Functional conflicts are conflicts that support the goals of the group and improve its performance. There are also conflicts that hinder group performance. These are dysfunctional or destructive forms of conflict. Therefore, managers should stimulate functional conflict and prevent or resolve non-dysfunctional conflict. This is the key to conflict management. The consequences of conflict can be positive or negative, as shown below: Positive Consequences 1. Leads to new ideas. 2. 3. 4. 5. 6. Stimulates creativity. Motivates Change. Promotes organizational vitality. Helps individuals and groups establish identities Serves as a safety valve to indicate problems. Negative Consequences 1. Diverts energy from work. 2. 3. 4. 5. 6. Threatens psychological well-being. Wastes resources. Creates a negative climate. Breaks down group cohesion. Can increase hostility and aggressive behaviours

Q6. Explain sensitivity training. Ans: Sensitivity training is an important part of Organization development (OD) which is a planned approach to improve employee and organizational effectiveness by conscious interventions in those processes and structures that have an immediate bearing on the human aspect of the organization (Ramanarayan, Rao, and Singh 1998). Sensitivity training is also known as T-group, T standing for training. This 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: 1. To make participants increasingly aware of, and sensitive to, the emotional reactions and expressions in themselves and others. 2. 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. 3. 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. 4. To develop achievement of behavioural effectiveness in participants. 5. 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. T-groups are designed to provide members with experiential learning about group dynamics, leadership and interpersonal relationships. The basic T-group training or sensitivity training is to change the standards, attitudes and behavior of individuals by using psychological techniques and programs. 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.

Master of Business Administration Semester I MB0038 Management Process & Organizational Behaviour - 4 Credits (Book ID:B1127) Assignment Set- 2 (60 Marks)
Q1. State the characteristics of management. Ans: Management may be defined in many different ways. Many eminent authors on the subject have defined the term management. Some of these definitions are: According to Lawerence A. Appley Management is the development of people and not the direction of things.(1959) In the words of Henry Fayol To manage is to forecast and to plan, to organize, to command, to co-ordinate and to control.(1949) According to Peter F. Drucker Management is a multi-purpose organ that manages a business and managers and manages worker and work.(1970) In the words of Koontz and ODonnel Management is defined as the creation and maintenance of an internal environment in an enterprise where individuals working together in groups can perform efficiently and effectively towards the attainment of group goals. (1972) From the definitions quoted above, it is clear that management is a technique of extracting work from others in an integrated and coordinated manner for realizing the specific objectives through productive use of different resources. Mobilizing the physical, human and financial resources and planning their utilization for business operations in such a manner as to reach the defined goals can be referred to as management. Management is a distinct activity having the following salient features or characteristics: 1. Goal-oriented: Management is a purposeful activity. It coordinates the efforts of employees to achieve the goals of the organization. The success of management is measured by the extent to which the organizational goals are achieved. It is imperative that the organizational goals must be well-defined and properly understood by the mangers at various levels. 2. Economic Resource: Management is one of the factors of production together with land, labour and capital. It is the most critical input in the success

of any organized group activity. It is the force which assembles and integrates other resources, namely, labour, capital and materials. These factors do not by themselves ensure production; they require the catalyst of management to produce goods and services required by the society. Thus, management is an essential ingredient of an organization. 3. Distinct Process: Management is a distinct process consisting of such functions as planning, organizing, staffing, directing and controlling. These functions are so interwoven that it is not possible to lay down exactly the sequence of various functions or their relative significance. In essence, the process of management involves decision-making and putting of decisions into practice. 4. Integrative 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. Managers apply knowledge, experience and management principles for getting the results from the workers by the use of non-human resources. Managers also seek to harmonize the individuals goals with the organizational goals for the smooth working of the organization. 5. Intangible Force: Management has been called an unseen force. Its presence is evidenced by the result of its efforts-orderliness, informed employees, buoyant spirit and adequate work output. Thus, feeling of management is result-oriented. One may not see with the naked eyes the functioning of management but its results are apparently known. People often remark of the effectiveness (or ineffectiveness) of management on the basis of the end results, although they cant observe it during operation. 6. 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. They must motivate the subordinates for the accomplishment of the tasks assigned to them. 7. A Science and an Art: Management has an organized body of knowledge consisting of well-defined concepts, principles and techniques which have wide applications. So it is treated as a science. The application of these concepts, principles and techniques requires specialized knowledge and skills on the part of the manager. Since the skills acquired by a manager are his personal possession, management is viewed as an art. 8. System of Authority: Management as a team of managers represents a system of authority, a hierarchy of command and control. Managers at different levels possess varying degrees of authority. Generally, as we move down in the managerial hierarchy, the degree of authority gets gradually reduced. Authority enables the managers to perform their functions effectively. 9. Multi-disciplinary Subject: Management has grown as a field of study (i.e. discipline) taking the help of so many other disciplines such as Engineering, Anthropology, Sociology and Psychology. Much of the management literature is the result of association of these disciplines. For instance, productivity orientation drew its inspiration from Industrial Engineering and human relations orientation from Psychology. Similarly, Sociology and Operations Research have also contributed to the development of management science.

10. Universal Application: Management is universal in character. The principles and techniques of management are equally applicable in the fields of business, education, military, government and hospital. Henri Fayol suggested that principles of management would apply more or less in every situation. The principles are working guidelines which are flexible and capable of adaptation to every organization where the efforts of human beings are to be co-ordinated. Q2. 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: There are a number of factors that create an environment that increases job satisfaction amongst the employees. Some of these important factors are: 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 supervisor's 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.

Q3. Define emotional intelligence. Explain Golemans model of emotional intelligence. Ans: "Emotional intelligence is the capacity for recognizing our own feelings and those of others, for motivating ourselves, for managing emotions well in ourselves and in our relationships." (Snow, 2001) Emotional Intelligence - EI - is a relatively recent behavioural model, rising to prominence with Daniel Goleman's 1995 Book called 'Emotional Intelligence'. The early Emotional Intelligence theory was originally developed during the 1970s and 80s by the work and writings of psychologists Howard Gardner (Harvard), Peter Salovey (Yale) and John 'Jack' Mayer (New Hampshire). Emotional Intelligence is increasingly relevant to organizational development and developing people, because the EI principles provide a new way to understand and assess people's behaviours, management styles, attitudes, interpersonal skills, and potential. Emotional Intelligence is an important consideration in human resources planning, job profiling, recruitment interviewing and selection, management development, customer relations and customer service, and more.

Emotional intelligence is the ability to manage ourselves and our relationship effectively. Each capability is composed of a set of competencies. Emotional intelligence skills and cognitive skills are synergistic top performers have both? The more complex the job, the more emotional intelligence matters Emotional competencies cluster into groups each is based on a common underlying emotional intelligence capacity. Vitello Cicciu (2002) Golemans Model of Emotional Intelligence Daniel Goleman and the Hay Group have identified a set of competencies that differentiate individuals with Emotional Intelligence. The competencies fall into four clusters: Self-Awareness: Capacity for understanding one's emotions, one's strengths, and one's weaknesses. Self-Management: Capacity for effectively managing one's motives and regulating one's behavior. Social Awareness: Capacity for understanding what others are saying and feeling and why they feel and act as they do. Relationship Management: Capacity for acting in such a way that one is able to get desired results from others and reach personal goals. The most popular and accepted mixed model of emotional intelligence is the one proposed by Goleman (1995). He viewed emotional intelligence as a total of personal and social competences. Personal competence determines how we manage ourselves, whereas social competence determines how we handle our interpersonal relationships. Personal competence It comprises of three dimensions of emotional intelligence, such as, selfawareness, self-regulation and motivation. Self-awareness is the ability of an individual to observe him/herself and to recognize 'a feeling as it happens' (Goleman, 1995). The hallmarks of this ability are self-confidence, selfassessment and openness to positive criticism. Self-regulation is the ability to control emotions and to redirect those emotions that can have negative impact. Trustworthiness, integrity, tolerance of ambiguity and attitude to accept change are some characteristics of this ability. Motivation is the ability to channelize emotion to achieve a goal through self-control and by moderating impulses as per the requirement of the situation. The people who have this ability are optimistic and committed towards organizational as well as individual goals. Social competence It comprises of two dimensions namely, empathy and social skills. Empathy is the ability to feel and get concerned for others, take their perspective and to treat people according to their emotional reactions.

People with this ability are experts in generating and motivating others. Social skills are the ability to build rapport and to manage relationships with people. People having this skill are very effective in persuasiveness and team management. Social skill is the culmination of all other components of emotional intelligence assuming that people can effectively manage social and work relationships only when they can understand and control their own emotion and can emphasize with the feelings of others.

Q4. Explain the different leadership styles as per Managerial Leadership Grid Theory. Ans: Behavioral Theory developed by scholars from Ohio State University during 1940-1950s led to two dimensions of leadership behaviour-concern for tasks and concern for relations. Almost in the same style, the Michigan University studies made the distinction between job-centred and production- centred leaders. Blake and Mouton rated these concepts in a framework called the Managerial Grid. They interpreted the concepts in a broad way. Blake and Mouton have used "Concern for Production" and "Concern for People'" in their Managerial Grid on horizontal and vertical axes respectively. Managers may be concerned for their people and they must also have some concern for the work to be done. The question is, how much attention do they pay to one or the other? This is a model defined by Blake and Mouton in the early 1960s. It included Impoverished management Authority-compliance Country Club management

 Middle of the road management Team management

The Managerial Grid was the original name; the modifications were made by Robert R Blake and Anne Adams McCanse. After the modifications it was named as Leadership Grid. Leadership Grid an approach to understanding a leaders concern for results (production) and concern for people 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. Features 1. Does only enough to preserve job and job seniority. 2. Gives little and enjoys little. 3. Protects himself by not being noticed by others. Implications 1. Tries to stay in the same post for a long time. Examples of Leader speak: I distance myself from taking active responsibility for results to avoid getting entangled in problems. If forced, I take a passive or supportive position. 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. Examples of Leader speak: I support results that establish and reinforce harmony. I generate enthusiasm by focusing on positive and pleasing aspects of work. 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 someone's creativity), so it is difficult for their subordinates to contribute or develop. Examples of Leader speak: I expect results and take control by clearly stating a course of action. I enforce rules that sustain high results and do not permit deviation. 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 work 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. Examples of Leader speak: I endorse results that are popular but caution against taking unnecessary risk. I test my opinions with others involved to assure ongoing acceptability.

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 endeavours 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. Examples of Leader speak: I initiate team action in a way that invites involvement and commitment. I explore all facts and alternative views to reach a shared understanding of the best solution.

Q5. Distinguish between internal and external forces of change. Ans: Forces for change are of two types: Internal forces External forces. Internal forces Any change in organizations internal factors may also necessitate change. Such a change is required because of two 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. 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 behaviour 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 behaviour of people in the organization. Therefore it is required to make adjustment in its working so that it matches with people. Q6. What are the 14 principles of management of Henri Fayol? Ans: Henri Fayol, a mining engineer and manager by profession, defined the nature and working patterns of the twentieth-century organization in his book, General and Industrial Management, published in 1916. In it, he laid down what he called 14 principles of management. This theory is also called the Administrative Theory. The principles of the theory are: 1. Division of work: tasks should be divided up with employees specializing in a limited set of tasks so that expertise is developed and productivity increased. 2. Authority and responsibility: authority is the right to give orders and entails enforcing them with rewards and penalties; authority should be matched with corresponding responsibility. 3. Discipline: this is essential for the smooth running of business and is dependent on good leadership, clear and fair arguments, and the judicious application of penalties. 4. Unity of command: for any action whatsoever, an employee should receive orders from one superior only; otherwise authority, discipline, order, and stability are threatened.

5. Unity of direction: a group of activities concerned with a single objective should be co-coordinated by a single plan under one head. 6. Subordination of individual interest to general interest: individual or group goals must not be allowed to override those of the business. 7. Remuneration of personnel: this may be achieved by various methods but it should be fair, encourage effort, and not lead to overpayment. 8. Centralization: the extent to which orders should be issued only from the top of the organization is a problem which should take into account its characteristics, such as size and the capabilities of the personnel. 9. Scalar chain (line of authority): communications should normally flow up and down the line of authority running from the top to the bottom of the organization, but sideways communication between those of equivalent rank in different departments can be desirable so long as superiors are kept informed. 10. Order: both materials and personnel must always be in their proper place; people must be suited to their posts so there must be careful organization of work and selection of personnel. 11. Equity: personnel must be treated with kindness and justice. 12. Stability of tenure of personnel: rapid turnover of personnel should be avoided because of the time required for the development of expertise. 13. Initiative: all employees should be encouraged to exercise initiative within limits imposed by the requirements of authority and discipline. 14. Esprit de corps: efforts must be made to promote harmony within the organization and prevent dissension and divisiveness.