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Master of Business Administration Semester I Management Process and Organizational Behaviour Assignment Set- 1


PROCESS OF SOCIAL LEARNING THEORY The social learning theory was proposed by Bandura. It recognizes the importance of observing and modeling the behaviors, attitudes, and emotional reactions of others. According to Bandura (1977), most human behavior is learned observationally through modeling: from observing others one forms an idea of how new behaviors are performed, and on later occasions this coded information serves as a guide for action. Social learning theory explains human behavior in terms of continuous reciprocal interaction between cognitive, behavioral, and environmental influences.

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 model’s influence will depend on how well the individual remembers the model’s action after the 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 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. 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 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.

Principles of social learning are as follows: 1. The highest level of observational learning is achieved by first organizing and rehearsing the modeled behavior symbolically and then enacting it overtly. Coding modeled behavior into words, labels or images results in better retention than simply observing. 2. Individuals are more likely to adopt a modeled behavior, if it results in outcomes they value. 3. Individuals are more likely to adopt a modeled behavior, if the model is similar to the observer and has admired status and the behavior has functional value.

What are the hindrances that we face in perception? Answer: Hindrances that we face in perception Listening is not easy and there are a number of obstacles that stand in the way of effective listening. etc. which interfere with the listening process. or memory related problems which make them poor listeners. For example.Q2. 4. their attention may not be focused on what the speaker is saying. Physical Barriers – These refer to distractions in the environment such as the sound of anair conditioner. Attitudinal Barriers – Pre-occupation with personal or work related problems can make it difficult to focus one’s attention completely on what a speaker is saying. give feedback. Another common attitudinal barrier is egocentrism. Since listeners are left with a lot of spare time. 2. whereas speakers talk at around 125 words per minute. They could also be in the form of information overload. Some people may have genuine hearing problems or deficiencies that prevent them from listening properly. Listeners have the ability to process information at the rate of approximately 500 words per minute. or the belief that you are more knowledgeable than the speaker and that you have nothing new to learn from his ideas. Once detected. is wasted if the receiver is not listening at the other end. Another wrong assumption is to think that listening is a passive activity. but may wander elsewhere. by paying attention. cigarette smoke. Other people may have difficulty in processing information. it is very hard to listen carefully to what is being said. real listening or active listening is hard work – it requires speaking sometimes to ask questions. People with this kind of closed minded attitude make very poor listeners. 3. Wrong Assumptions – The success of communication depends on both the sender and the receiver. in which a listener merely absorbs the thoughts of the speaker. seeking clarifications and giving feedback. Physiological Barriers – This was discussed earlier under the barriers to communication. agree or disagree with the speaker. or an overheated room. they can generally be treated. It is wrong to assume that communication is the sole responsibility of the sender or the speaker and that listeners have no role to play. a brilliant speech or presentation. Such an assumption can be a big barrier to listening. however well delivered. These barriers may be categorized as follows – 1. if you are in a meeting with your manager and the phone rings and your mobile beeps at the same time to let you know that you have a message. as we have seen in an earlier unit. . both within and outside the workplace. For example. Listeners have as much responsibility as speakers to make the communication successful. Another physiological barrier is rapid thought. even if what is being said is of prime importance. On the contrary.

Bad Listening Habits Most people are very average listeners who have developed poor listening habits that are hard to shed and that act as barriers to listening. was one of the first to recognize the need for organized training programs in listening skills. Schwartz. especially in the Indian context. According to communication experts however. They have to develop the art of listening through practice and training. For example. emphasizes the importance of listening by saying “Big people monopolize the listening. . People are not born good listeners. whereas Westerners attach greater importance to speaking. Generally. 6. whereas listeners are seen to be weak and lacking authority. Sometimes. the subject itself may be dismissed as uninteresting. Yet another habit is to avoid difficult listening and to tune off deliberately. while men listen more for the facts and the content. in a country like India where there is enormous cultural diversity. because the listener does not want to listen. Speakers are seen as being in command of things. The problem of different accents arises not only between cultures. when two people from these two different cultures communicate. 7. Example – A salesperson giving a demonstration of a new type of office equipment may be asked by two colleagues if the equipment will work without any problems and respond by saying “Sure. whereas a female user may detect some hesitation in his voice. Cultural Barriers Accents can be barriers to listening. Listeners are as important and as powerful as speakers. but also within a culture. whereas the female user listens for the tone of the message. Small people monopolize the talking. The importance attached to listening and speaking differs in western and oriental cultures. Lee Iacocca. writer and management professor. if the subject is too technical or difficult to understand. For example. in order to impress the speaker and to assure him that they are paying attention. the reverse is true. miss out on the main point. many organizations both in India and abroad incorporate listening skills in their training programs. accents may differ even between different regions and states. Orientals regard listening and silence as almost a virtue. some people have the habit of “faking” attention or trying to look like a listener.” 5. Others may tend to listen to each and every fact and. Lack of training in listening skills is an important barrier to listening. This is because the male user listens for the content of the message. Another type of cultural barrier is differing cultural values.” A male user may take his answer at face value. former Chairman of the Chrysler Corporation in the US.Yet another barrier of this type is to assume that speakers are more powerful than listeners. since they interfere with the ability to understand the meaning of words that are pronounced differently. Women are more likely to listen for the emotions behind a speaker’s words. Today. 8. Therefore this would interfere with the listening process. as a result. Studies have revealed that men and women listen very differently and for different purposes. Gender Barriers Communication research has shown that gender can be a barrier to listening. In fact David J. Lack of Training Listening is not an inborn skill.

nodding now and then to show appreciation and understanding and appropriate facial expressions are some of the ways in which your non-verbal communication can indicate that you are involved in what the speaker is saying. even before you have listened completely to the speaker’s words. training and practice. you can try to control the environment in which communication takes place. loud noises from the outside environment and poor air conditioning systems. give feedback and suggestions. This kind of concentration can be developed through various techniques and through constant practice. in order to convey that you have understood his message. 3. This can be done even without verbal communication. avoiding places with high levels of activity. Even if it is a subject about which you may be knowledgeable. 4. Avoid the tendency to formulate your own response. You have to focus your attention completely on what the speaker is saying. it is also important to rid yourself of the notion that you have nothing new to learn from the other person. Therefore. Select Face-to-face Channels – Listening is less accurate in the absence of face-to-face communication. maintaining steady eye contact with the speaker. Ensuring a proper sound system and acoustics so that the speaker is audible. listening to and understanding ideas correctly over the telephone are much harder than through a face-to-face meeting. without letting your mind wander. The chances are that your orders may not be understood correctly. . Be Open-minded and Avoid Distractions – Listening is an exhausting activity which requires the right attitude and mindset. All the different aspects of non-verbal communication discussed earlier should be used for maximum effect. For example. so that listening can take place without any distractions. Take the case of calling a restaurant and placing orders over the telephone for home delivery of a meal. shutting off mobile phones and telephones. Listen First Before Responding – Always let yourself finish listening before you begin to speak. Silence is often interpreted as lack of understanding or attention. In addition. sitting up with an erect posture. it is also important to engage in verbal communication with the speaker. the speaker may offer a different perspective or point of view. 6. 2. Therefore it is important to listen actively. as far as possible. 5. or just paraphrase in your own words what the speaker has said. Use Verbal Communication to Indicate Active Listening – While nonverbal behavior by itself can communicate that you are an active listener. For example. Some of the suggested methods are discussed in detail below – 1.Strategies for Effective Listening: Although a number of barriers stand in the way of effective listening. You need to seek clarifications. these can be overcome through conscious efforts. are some of the ways in which you can overcome some of the physical barriers to listening. arrange face-to-face contact to ensure more accurate listening. Create a Conducive Environment – To an extent. Use Non-verbal Cues to Indicate Active Listening – It is important to communicate to the speaker that you are listening actively to what he is saying.

Focus on the Verbal and Non-verbal Message – Listening involves not only hearing and understanding the meaning behind the words.If you are too busy thinking about what to say next. The importance of non-verbal cues has been emphasized throughout this book. review what has been said so far and anticipate what he may say next. 8. “What is the key idea that the speaker is trying to convey?”. This spare time available to listeners is often misused by letting the mind wander and is one of the physiological barriers to listening. 10. facial expressions. . Ask Questions of Yourself and Make Notes – In order to engage in active listening. you also need to ask certain questions to yourself while listening. “How does this fit in with I already know on the subject?” or “How is this presentation organized?” are some possible questions that you could jot down along with the answers. For example. but also being alert to the non-verbal behavior of the speaker. One way of overcoming this barrier is to try to use this spare time to note down what the speaker has said. but can be learnt through proper training. This also gives the speaker the impression that you are pre-occupied or rude. For example. rather than on how the message is delivered. 9. gestures and outward appearance. Thinking ahead of the speaker and trying to guess where his talk is leading is a good strategy for effective listening. This is not easy. rather than the Delivery – In order to grasp the true meaning of what the speaker is saying. It is important to watch for any positive or negative messages that may be conveyed through the speaker’s tone of voice. being over critical of the speaker’s accent or mannerisms may make you miss the essence of the message. you may miss the main point that the speaker is trying to make. Use the Speaker-listener Gap constructively – It was pointed out earlier that listeners have the ability to absorb information faster than speakers’ rate of speech. Similarly. looking at the power point slides during a speaker’s presentation may distract your attention from the main point that he is trying to convey. Focus on the Content. 7. it is important to concentrate on the content of the message.

. A person who robs you on the street threatening you with a gun is using this type of power. . We accept the advice of doctor. 3. Experts have identified different bases or source of power that a person may have. and interpersonal skills. personality. Position power. Three bases of personal power are: 1. ANS. either by self or by the subordinates. and even allow him/her to operate upon us because we have faith in his expertise. It helps a person to enhance the effectiveness of all other type of power. Describe the bases of power. This type of power flows from the persons personal characteristics including looks. Bases of power In the context of inter-personal relationship power may be defined as the ability of a person to influence and control behavior of others. A person has some authority and discretion assigned to him by virtue of his/her position in the organization structure. Expert power. Reference. Personal power. 1962). Information power. Expertise. These sources are called position power and personal power.Q3. This power has a multiplier effect. The essence of power is control over the behavior of others (French & Raven. who can influence the sanction of other employees' expenditure budget can exercise resource power over them. A person has expert power by virtue of being recognized as an expert. Resource power. Thus a person in finance department. People can also exercise power by their relationship and association with others. These are:        Coercive power. 2. A person has resource power when he or she has the discretion to decide the resources available to you. Power is the ability to make things happen in the way an individual wants. Association power. Rational persuasion. Managers derive power from both organizational and individual sources. Coercive power results from a person's ability to punish or withhold rewards. Information is like resource power. respectively. This is position power. A person with information can disclose the information selectively to people he wants to favour. Personal power resides in the individual and is independent of that individual's position. People tend accept opinions and wishes of people having good relationship them. and in this way exercise influence over them.

or believe as the boss does. Others follow because they can articulate attractive visions. However the table may turn in case the subordinate has superior knowledge or skills than his/ her boss. or judgment that the other person lacks. take personal risks. Rational persuasion involves both explaining the desirability of expected outcomes and showing how specific actions will achieve these outcomes. Followership is not based on what the subordinate will get for specific actions or specific levels of performance. Referent power is the ability to control another's behavior because the person wants to identify with the power source. 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. for example. . This obedience may occur. through the individual's efforts. demonstrate follower sensitivity. since. In a sense. the person accepts the desirability of an offered goal and a viable way of achieving it. In this case. In this age of technology driven environments. Charismatic Power is an extension of referent power stemming from an individual's personality and interpersonal style. Expert power is relative. a subordinate obeys the boss because he or she wants to behave. the subordinate attempts to avoid doing anything that would interfere with the pleasing boss-subordinate relationship. not absolute.Expert power is the ability to control another person's behavior by virtue of possessing knowledge. but needs. etc. Rational persuasion is the ability to control another's behavior. perceive. but on what the individual represents-a path toward lucrative future prospects. because the subordinate likes the boss personally and therefore tries to do things the way the boss wants them done. experience. the second proposition holds true in many occasions where the boss is dependent heavily on the juniors for technologically oriented support.

she interviews three candidates. Psychologically he is Self-conscious. RAVI MR. Chanchalcan derive: CANDIDATE MR. Psychologically he is Adventurous. Love of food. Assertive/bold. tall Soft. With a desire for power/dominance. He is “well-proportioned”. round shaped. Artistic. And a love of risk/chance Mr. Chanchal derive out of the candidates as per Sheldon’s theory of personality? ANS. Psychologically he is Sociable. rectangular shaped Thin. Emotionally restrained. Ms. Good humored.Q4. RAMGOPAL Physical Characteristics Muscular. Courageous. thick skin. Indifferent to what others think or want. what personality traits can Ms. . Ramgopal represents Endomorph body type. Tolerant. Even-tempered. Relaxed. For the post of QC Manager. round shaped. Thoughtful Mr. tall Soft. Zest for physical activity. Socially anxious. large brain. delicate build. below are the traits that Ms. Intense. RAVI MR. underdeveloped muscles Mr. with a love of comfort. GINEESH MR. underdeveloped muscles From the above descriptions. CANDIDATE MR. Given below are the physical characteristics of the candidates. Private. rectangular shaped Thin. delicate build. and has a need for affection. Chanchal Das Gupta is a recruitment specialist. Introverted. Competitive. Inhibited. Gineesh represents Ectomorph body type. GINEESH MR. thick skin. RAMGOPAL Physical Characteristics Muscular. large brain. Ravi represents Mesomorph body type. Per Sheldon`s theory of personality. Fun-loving.

Damaged emotional and psychological well-being of those involved in the conflict. (Permanent) erosion to personal. and community relationships. Motivateschange. Stimulates creativity. Positive consequences: Leads to new ideas. Complaints and blaming. Withdrawal and miscommunication or non-communication. Decreased productivity. Decreased morale. Promotes organizational vitality. Attitudes of distrust and hostility (that may influence all future interactions. Backstabbing and gossip. wasted resources and energy spent dealing with the conflict. money) devoted to dealing with the conflict. Lowered motivation. Dissatisfaction and stress. He lps individuals and groups toestablish identities. work.Q5. Poor decision-making. . Helps individuals to develop skills on how to manage conflicts. B uildscooperation. What are the consequences of conflict in organizations? Ans: Consequences of conflict in organizations Organizational Conflict can have both positive and negative consequences. Serves as a safety valve to indicate problems. Harm to others not directly involved in the conflict. Negative consequences: Increased costs (time. Improving quality decisions.

Often. The group is usually small and unstructured and chooses its own goals. It is practiced in a variety of forms under such names as T group. It is believed that as mutual trust is developed. these changes do not endure. as in several days of continuous meetings. . interpersonal communication increases.dynamics training. and eventually attitudes will change and be carried over into relations outside the group. Human relations and Group . Ans: Sensitivity training Sensitivity training is a psychological technique in which intensive group discussion and interaction are used to increase individual awareness of self and others. Encounter group. Issues are raised by the group members. and their interactions evoke a wide variety of feelings. They have been applied to a wide range of social problems (as in business and industry) in an effort to enhance trust and communication among individuals and groups throughout an organization. Sensitivity-training methods derived in large part from those of group psychotherapy. A trained leader is generally present to help maintain a psychologically safe atmosphere in which participants feel free to express themselves and experiment with new ways of dealing with others. Explain sensitivity training. Sensitivity training seems to be most effective if sessions are concentrated and uninterrupted.Q6. however. The leader encourages participants to examineverbally their own and others’ reactions. The leader remains as much as possible outside the discussion.

sports. such as business. there is management. politics or military. Invisible Force: Management is an invisible force. According to the Hayman.2 Q1. Ans: The main characteristics of management are as follows: I. Management is an activity: Management is an activity which is concerned with the efficient utilization of human and nonhuman resources of production II. Its existence can be felt through the enterprise or institution it is managing. Managers and other personnel officers apply their knowledge. Management is required in all types or organizations. religious. State the characteristics of management. III. administration. experience and skills to achieve the desired objectives IV. cultural. Wherever there are some activities. Goal Oriented: Management is goal oriented as it aims to achieve some definite goals and objectives.Set. social. "Effective management is always management by objectives". Universal activity: Management is universal. Accomplishment through the efforts of others: Managers cannot do everything themselves. educational. They must have the necessary ability and skills to get work accomplished through the efforts of others V. . The basic principles of management are universal and can be applied anywhere and in every field.

. Today.. Art as well as Science: Management is both an art and a science. management is needed at all levels of the organization. This integrating process is result oriented. it contains principles drawn from many social sciences like psychology. Management is distinct from ownership: In modern times. Multidisciplinary Knowledge: Though management is a distinct discipline. Integrated process: Management is an integrated process. VIII.VI. It is a science as it has an organized body of knowledge which contains certain universal truths and an art as managing requires certain skills which apply more or less in every situation. middle and lower level X. competent and experienced managerial personnel IX. Need at all levels: According to the nature of task and scope of authority. machine and material to carry out the operations of the enterprise efficiently and successfully. top level. It integrates the men. there is a divorce of management from ownership.e. VII. sociology etc. i. big corporations are owned by a vast number of shareholders while their management is in the hands of paid qualified.

Mr. He is having a meeting with Ms. for creating an environment that increases job satisfaction? Ans: Suggestions that I will give to Mr.HR of a leading financial services company. Rejani chandran leading HR consultant. Assume that you are Ms. Mr. Suresh. What suggestion you will give to Mr. Suresh Kumar is the VP. Suresh is concerned about creating an environment that helps in increasing the job satisfaction amongst employees. the HR consultant. Rejani. for creating an environment that increases job satisfaction are:  Below are the suggestions for creating an environment with increased job satisfaction from an HR perspective: Provide workers with responsibility-and then let them use it    Show respect Provide a positive working environment     Reward and recognition Involve and increase employee engagement Develop the skills and potential of your workforce Evaluate and measure job satisfaction .Q2. Suresh.

"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). Ans: Emotional intelligence Emotional intelligence (EI) refers to the ability to perceive. i. Transactional Analysis. 5. Motivating yourself. Emotional Intelligence embraces and draws from numerous other branches of behavioral. while others claim it is an inborn characteristic. The process and outcomes of Emotional Intelligence development also contain many elements known to reduce stress for individuals and organizations. Mayer have been the leading researchers on emotional intelligence.. continuity and harmony.Q3. Knowing your emotions. and increasing stability. such as NLP (Neuro-Linguistic Programming). Peter Salvoes and John D. Explain Goldman’s model of emotional intelligence. and help others to be more productive and successful too. . Goleman identified the five 'domains' of EQ as: 1. 3. managing the emotions of others. Recognizing and understanding other people's emotions. improving relationships and understanding. control and evaluate emotions. Since1990. emotional and communications theories. By developing our Emotional Intelligence in these areas and the five EQ domains we can become more productive and successful at what we do. Define emotional intelligence. 2. Managing your own emotions. Managing relationships. by decreasing conflict. 4." they defined emotional intelligence as. Some researchers suggest that emotional intelligence can be learned and strengthened. In their influential article "Emotional Intelligence. and empathy.e.

dissatisfaction and disharmony. you necessarily give away a bit of each concern so that neither production nor people needs are fully met. people in this category believe that employees are simply a means to an end. organizational efficiency and high productivity when deciding how best to accomplish a task. though: When you compromise. Employee needs are always secondary to the need for efficient and productive workplaces. and areas of personal development when deciding how best to accomplish a task.   Impoverished Leadership – Low Production/Low People This leader is mostly ineffective. and procedures.   Country Club Leadership – High People/Low Production This style of leader is most concerned about the needs and feelings of members of his/her team. nor for creating a work environment that is satisfying and motivating. and views punishment as the most effective means to motivate employees. has strict work rules. Explain the different leadership styles as per Managerial – Leadership Grid Theory. Middle-of-the-Road Leadership – Medium Production/Medium People This style seems to be a balance of the two competing concerns. This type of leader is very autocratic. Concern for Production – This is the degree to which a leader emphasizes concrete objectives. policies. These people operate under the assumption that as long as team members are happy and secure then they will work hard. Ans: Leadership styles as per Managerial – Leadership Grid Theory The Managerial Grid is based on two behavioral dimensions:  Concern for People – This is the degree to which a leader considers the needs of team members.  . He/she has neither a high regard for creating systems for getting the job done. Therein lies the problem. What tends to result is a work environment that is very relaxed and fun but where production suffers due to lack of direction and control. The result is a place of disorganization. Produce or Perish Leadership – High Production/Low People Also known as Authoritarian or Compliance Leaders. their interests. It may at first appear to be an ideal compromise.Q4.

this is the pinnacle of managerial style. as a result.Leaders who use this style settle for average performance and often believe that this is the most anyone can expect. and have a stake in the organization’s success. high production.  Team Leadership – High Production/High People According to the Blake Mouton model. These leaders stress production needs and the needs of the people equally highly. . When employees are committed to. The premise here is that employees are involved in understanding organizational purpose and determining production needs. This creates a team environment based on trust and respect. their needs and production needs coincide. which leads to high satisfaction and motivation and.

Distinguish between internal and external forces of change. .Q5. preferences. purchasing patterns & frequencies Declining market shares due to competition. Ans: Internal and external forces of change Internal Forces: Poor financial performance Employee dissatisfaction Inefficiency of existing business processes and systems Need to increase profitability Existence of cultural misfits to organization goals and objectives External Forces: Changes in technology Political factors General macro-economic environment Changes in consumer tastes.

. 7. 3. 5. and is therefore naturally associated with authority. AUTHORITY: The concepts of Authority and responsibility are closely related. REMUNERATION: Many variables. and success of the business. DISCIPLINE: A successful organization requires the common effort of workers. 4. such as cost of living. What are the 14 principles of management of Henri Fayol? Ans: Following are the 14 principles of management of Henri Fayol: 1. should be considered in determining a worker’s rate of pay. UNITY OF DIRECTION: The entire organization should be moving towards a common objective in a common direction. UNITY OF COMMAND: Workers should receive orders from only one manager. Whoever assumes authority also assumes responsibility. Fayol presented work specialization as the best way to use the human resources of the organization. DIVISION OF WORK: Work should be divided among individuals and groups to ensure that effort and attention are focused on special portions of the task. 2. general business conditions.Q6. Responsibility involves being accountable. 6. Authority was defined by Fayol as the right to give orders and the power to exact obedience. supply of qualified personnel. SUBORDINATION OF INDIVIDUAL INTERESTS TO THE GENERALINTERESTS: The interests of one person should not take priority over the interests of the organization as a whole. Penalties should be applied judiciously to encourage this common effort.

from the first line supervisor to the president. which is defined as new or additional work activity undertaken through self direction. 14. ORDER: For the sake of efficiency and coordination. CENTRALIZATION: Fayol defined centralization as lowering the importance of the subordinate role. the first line supervisor the least.8. Each manager. Decentralization is increasing the importance. The existence of a scalar chain and adherence to it are necessary if the organization is to be successful. Recruitment and Selection Costs. 11. INITIATIVE: Management should take steps to encourage worker initiative. 10. 9. 12. possesses certain amounts of authority. The degree to which centralization or decentralization should be adopted depends on the specific organization in which the manager is working. The President possesses the most authority. 13. all materials and people related to a specific kind of work should be treated as equally as possible. Lower level managers should always keep upper level managers informed of their work activities. . EQUITY: All employees should be treated as equally as possible. SCALAR CHAIN: Managers in hierarchies are part of a chain like authority scale. as well as increased product-reject rates are usually associated with hiring new workers. ESPIRIT DE CORPS: Management should encourage harmony and general good feelings among employees. STABILITY OF TENURE OF PERSONNEL: Retaining productive employees should always be a high priority of management.