Program: PGDM/ (Batch2019-21), Trimester I, End Term Exam paper, Subject: Leadership and Organization Behavior

K. J. SOMAIYA INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH,

Vidyavihar, Mumbai- 400077

Program: PGDM/ (Batch2019-21), Trimester I

Subject: Leadership and Organization Behavior
(End term Examination)

Maximum Marks: 50
Duration: 3 hours
Date: 7th Oct./2019

Instructions
There are two sections in the question paper.
All questions in section A are compulsory and pertain to the case studies
Attempt any two questions from section B

SECTION A
Case 1 (15marks)
Until recently, Hur Jae-hoon could end debate with junior staff members just by declaring that
the discussion was over. Employed at the fourth tier in SK Telecom Co.’s five-tier
management/professional hierarchy, the 33-year-old strategist held the corresponding title of
“Hur Daeri” and received plenty of respect from people in lower positions. No one below Hur
was allowed to question his decisions, and Hur was expected to silently comply with requests
from above. South Korea’s culture of deferring to people in higher positions was deeply
ingrained in the telecommunications company. In some South Korean companies, such as
Samsung, Junior staff members aren’t even allowed to initiate conversations with anyone above
their boss.

Now, in spite of South Korea’s strong hierarchical culture, SK Telecom wants to support more
egalitarian values. It has already removed its five management ranks and their differentiated
titles and status. The English word Manager is now used to address anyone employed throughout
the five former ranks. (Hur Jae-hoon’s title has changed from Hur Daeri to “Hur Manager”).
Only vice presidents and above retain their previous status titles. People in charge of projects or
people are also called “Team Leader.” Furthermore, the company is assigning project leadership
responsibilities to employees in their twenties, whereas these roles were previously held only by
Program: PGDM/ (Batch2019-21), Trimester I, End Term Exam paper, Subject: Leadership and Organization Behavior

older staff with much more seniority. As an added change, the company is allowing a more
casual dress code at work.

Through this dramatic shift in values and practices, SK Telecom’s senior executives hope that
junior staff will speak up more freely, thereby improving creativity and decision-making. They
particularly want to avoid incidents such as one that occurred several years ago in which an
excellent idea from younger employees was initially shot down by their bosses. The junior staff
suggested that allowing customers to change their cell phone ringtones to music chosen by the
friend they’ve phoned would generate revenue through music licensing. Fortunately, the idea
was introduced several months later, after a few persistent employees proposed the idea again.

SK Telecom’s initiatives is not completely new to South Korea. Small high-tech companies
already embrace egalitarian values and flatter corporate structures. But SK Telecom is among the
first large firms in the country to attempt this culture shift, and it has met with resistance along
the way.SK Telecom executives were initially divided over how quickly and to what extent the
company should distance itself from South Korea’s traditional hierarchical culture. “There were
ideas for gradual versus all-out reforms,” recalls chief executive Kim Sin-bae. But the word
‘gradually’ means ‘not now’ to some people. So we decided to go all-out.”

According to a company survey, 80 percent of employees support the changes. However, even
with the changes in titles, many still look for subtle evidence of who has higher status and,
therefore, should receive more deference. Some also rely on what positions managers held under
the old five-tier hierarchy. “I know what the old titles were,” says an LG Electronics Co.
manager who supplies cell phones to SK Telecom. “So unconsciously, I keep that in mind.”

Hur Jae-hoon admits there are times when he prefers a more hierarchical culture, but he
believes that SK Telecom’s more egalitarian values and practices are already showing favourable
results. In one recent meeting, a younger colleague sparred with Hur over the better way to
complete a strategy project. “For a moment, I wished it was back in the old days when I could
have shut that guy down, “Hur recalls. “But I had to admit his opinion was better than mine, and
I adjusted. So the system worked.”

1. Using Hofstede’s framework discuss in detail which cultural value is SK Telecom attempting
to distance itself from? What indicators of this value are identified in this case study? (8
marks).
2. Using Lewin’s model of change give a framework of managing change in SK Telecom. What
are some of the issues that may complicate or support this transition? (7 marks).

Case 2: (15 marks)

Malushka loves to hire new people. As manager of the Medicare Reimbursement department of a
large hospital , she sees it as a great responsibility to aggressively pursue and hire the best
Program: PGDM/ (Batch2019-21), Trimester I, End Term Exam paper, Subject: Leadership and Organization Behavior

people. She has already experienced the challenges of hiring the wrong person. She knows a bad
personality match could undermine the culture she worked so hard to build. Malushka plans to
do everything in her power to never repeat the mistake of a bad hire again.
This latest hire, however is proving to be a bigger challenge than she expected. The problem is
that the position requires a good deal of specialized knowledge. Malushka needs someone who
knows that current Medicare regulations and who would be able to decipher new ones. The pool
of candidates with this knowledge is extremely small. Truthfully, she has interviewed only one
person with the skills and knowledge that she needs.
Avanti was interviewed two weeks ago. She knew the regulations better that anyone Malushka
has ever met. Every question Malushka asked, Avanti answered. What an asset Avanti would be
to the department. The dilemma is that Avanti seems to be extremely extroverted, needing and
wanting a lot of social involvement. This job would not offer that opportunity. Even worse,
Jindal, the main person with whom Avanti would be working, is an extreme introvert. He rarely
speaks to anyone and prefers that people speak to him as little as possible. Malushka can see
nothing but problems between these two employees.
Malushka does not know what to do. She values Jindal a great deal and does not want to do
anything to make him unhappy in his job. But she desperately needs someone in this vacant
position. She has been depending on everyone to pitch in and cover the workload for weeks now.
She knows that has to stop. Yet, is it fair to bring in someone she feels sure would be unhappy in
the job and would ultimately quit ? She may even end up losing both Avanti and Jindal. She has
no idea what is the right thing to do.
3. If Malushka follows the rational model of decision making, mention the steps which she
would follow.(8marks)
4. What would be your solution to the problem? (7 marks)
SECTION B

(Attempt any two questions; 2*10 marks)

5. “The list of nominations for the 2017 Academy Awards, which cover movies released in
2016, makes clear this will not be a third year in a row in which all 20 of the nominated
actors and actresses are white people — thus averting another year of online jeers and sneers
of #OscarsSoWhite”.
Keeping the above caselet in mind, discuss with example the two major approaches to
workplace diversity. What could be done to address the scenario discussed above? (10
marks)
6. Does behaviour always follow attitudes? Why or why not? (10 marks)

7. Short notes on any two

a. Discuss the ‘dark triad’ of personality (5 marks)
Program: PGDM/ (Batch2019-21), Trimester I, End Term Exam paper, Subject: Leadership and Organization Behavior

b. What are three ethical decision making criteria? (5 marks)

c. Discuss resistance to change in term of its organizational sources. (5 marks)
d. What are conflict handling intentions?
e. Characteristics of Charismatic leadership