Motherhood University,( Roorkee)

Faculty of Commerce and Business Studies

Assignment
Academic Session: 2020-21
Subject Name: Organization Behavior
Paper Code: - MUBBA-302
Name of student:-Sahil Saini
Roll no. 1905000012

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UNIT-1
Q1.What do you mean by Oraganization Behavior?

Ans- Organizational behavior (OB) is the academic study of how people act within groups. Its principles
are applied primarily in attempts to make businesses operate more effectively.

Organizational Behavior
The study of organizational behavior includes areas of research dedicated to improving job
performance, increasing job satisfaction, promoting innovation, and encouraging leadership. Each has its
own recommended actions, such as reorganizing groups, modifying compensation structures, or
changing methods of performance evaluation.

The study of organizational behavior has its roots in the late 1920s, when the Western Electric Company
launched a now-famous series of studies of the behavior of workers at its Hawthorne Works plant in
Cicero, Illinois.Researchers there set out to determine whether workers could be made to be more
productive if their environment was upgraded with better lighting and other design improvements. To
their surprise, the researchers found that the environment was less important than social factors. It was
more important, for example, that people got along with their co-workers and felt their bosses
appreciated them.Those initial findings inspired a series of wide-ranging studies between 1924 and
1933.They included the effects on productivity of work breaks, isolation, and lighting, among many
other factors.
The best known of the results is called the Hawthorne Effect, which describes the way test subjects'
behavior may change when they know they are being observed. Researchers are taught to consider
whether and to what degree the Hawthorne Effect is skewing their findings on human behavior.

Organizational behavior was not fully recognized by the American Psychological Association as a field of
academic study until the 1970s.However, the Hawthorne research is credited for validating
organizational behavior as a legitimate field of study, and it's the foundation of the human resources
profession as we now know it.

Goals of Organizational Behavior Study

The leaders of the Hawthorne study had a couple of radical notions. They thought they could use the
techniques of scientific observation to increase an employee's amount and quality of work. And, they
did not look at workers as interchangeable resources. Workers, they thought, were unique in terms of
their psychology and potential fit within a company.Over the following years, the concept of
organizational behavior widened. Beginning with World War II, researchers began focusing on logistics
and management science. Studies by the Carnegie School in the 1950s and 1960s solidified these
rationalist approaches to decision-making.Today, those and other studies have evolved into modern
theories of business structure and decision-making.

The new frontiers of organizational behavior are the cultural components of organizations, such as how
race, class, and gender roles affect group building and productivity. These studies take into account the
ways in which identity and background inform decision-making.

KEY TAKEAWAYS

•Organizational behavior is the study of how people behave within groups.

•Early studies determined the importance of group dynamics in business productivity.

•The study of organizational behavior is a foundation of corporate human resources.

Where Organizational Behavior Is Studied

Academic programs focusing on organizational behavior are found in business schools as well as at
schools of social work and psychology. These programs draw from the fields of anthropology,
ethnography, and leadership studies, and use quantitative, qualitative, and computer models as
methods to explore and test ideas.

Depending on the program, one can study specific topics within organizational behavior or broader
fields within it. Specific topics covered include cognition, decision-making, learning, motivation,
negotiation, impressions, group process, stereotyping, and power and influence. The broader study
areas include social systems, the dynamics of change, markets, relationships between organizations and
their environments, how social movements influence markets, and the power of social networks.
Real World Examples of Organizational Behavior

Findings from organizational behavior research are used by executives and human relations
professionals to better understand a business’s culture, how that culture helps or hinders productivity
and employee retention, and how to evaluate candidates' skills and personality during the hiring
process.Organizational behavior theories inform real-world evaluation and management of groups of
people.

There are a number of components:

•Personality plays a large role in the way a person interacts with groups and produces work.
Understanding a candidate's personality, either through tests or through conversation, helps determine
whether they are a good fit for an organization.

•Leadership, what it looks like and where it comes from, is a rich topic of debate and study within the
field of organizational behavior. Leadership can be broad, focused, centralized or de-centralized,
decision-oriented, intrinsic in a person’s personality, or simply a result of a position of authority.

•Power, authority, and politics all operate inter-dependently in a workplace. Understanding the
appropriate ways these elements are exhibited and used, as agreed upon by workplace rules and ethical
guidelines, are key components to running a cohesive business.

Q2.Explain the term Business Environment?

Ans- Definitions of Business Environment

The term ‘business environment’ connotes external forces, factors and institutions that are beyond the
control of the business and they affect the functioning of a business enterprise. These include
customers, competitors, suppliers, government, and the social, political, legal and technological factors
etc. While some of these factors or forces may have direct influence over the business firm, others may
operate indirectly. Thus, business environment may be defined as the total surroundings, which have a
direct or indirect bearing on the functioning of business. It may also be defined as the set of external
factors,such as economic factors, social factors, political and legal factors, demographic factors,and
technical factors etc., which are uncontrollable in nature and affects the business decisions of a firm.

 Business Environment has been defined by Bayard O. Wheeler as “the total of all things external to
firms and industries which affect their organization and operation”.
 According to Arthur M. Weimer, business environment encompasses the ‘climate’ or set of
conditions, economic, social, political or institutional in which business operations are conducted.
 According to Glueck and Jauch, “The environment includes factors outside the firm which can lead
to opportunities for or threats to the firm. Although there are many factors, the most important of
the sectors are socio-economic, technological, supplier, competitors, and government.”
 According to Barry M. Richman and Melvgn Copen “Environment consists of factors that are largely
if not totally, external and beyond the control of individual industrial enterprise and their
 managements. These are essentially the ‘givers’ within which firms and their management must
operate in a specific country and they vary, often greatly, from country to country”.

From the above definitions we can extract that business environment consists of factors that are
internal and external which poses threats to a firm or these provide opportunities for exploitation.

Concept of Business Environment

A business firm is an open system. It gets resources from the environment and supplies its goods and
services to the environment. There are different levels of environmental forces. Some are close and
internal forces whereas others are external forces. External forces may be related to national level,
regional level or international level. These environmental forces provide opportunities or threats to the
business community. Every business organization tries to grasp the available opportunities and face the
threats that emerge from the business environment. Business organizations cannot change the external
environment but they just react. They change their internal business components (internal
environment) to grasp the external opportunities and face the external environmental threats. It is,
therefore, very important to analyze business environment to survive and to get success for a business
in its industry. It is, therefore, a vital role of managers to analyze business environment so that they
could pursue effective business strategy. A business firm gets human resources, capital, technology,
information, energy, and raw materials from society.It follows government rules and regulations, social
norms and cultural values, regional reaty and global alignment, economic rules and tax policies of the
government. Thus, a business organization is a dynamic entity because it operates in a dynamic business
environment.

Features of Business Environment

On the basis of the above discussion the features of business environment can be summarized as
follows.

 Business environment is the sum totals of all factors external to the business firm and that
greatly influence their functioning.
 It covers factors and forces like customers, competitors, suppliers, government, and the social,
cultural, political, technological and legal conditions.
 The business environment is dynamic in nature that means, it keeps on changing.
 The changes in business environment are unpredictable. It is very difficult to predict the exact
nature of future happenings and the changes in economic and social environment. .
 Business Environment differs from place to place, region to region and country to country.

Q3. What is significance of Oraganization Behavior?

Ans- Significance of Organisational Behaviour

The need and importance of organisational behavior are as under:
1. Skill Improvement:-

 Study of Organisational Behavior helps to improve skills.

 This includes the ability of employees and use of knowledge to become more efficient.
 It also improves managers, as well as other employees, work skill.

2. Understanding Consumer Buying Behavior:-

It also an important part to improve the marketing process by understanding consumer (buying)
behavior.

3. Employee Motivation:-

OB helps to understand the basis of Motivation and different ways to motivate employees properly.

4. Nature of Employees:-

 Understanding of personnel and employee nature is important to manage them properly.

 With the help of OB, we can understand whether employees or people are Introvert, Extrovert,
Motivated, Dominating etc.

5. Anticipating Organisational events:-

 The scientific study of behavior helps to understand and predict organisational events.
 For example Annual Business Planning, Demand Management, Product line management,
Production Planning, Resources Scheduling, Logistics etc.

6. Efficiency & Effectiveness:-

Study of organisational behavior helps to increase efficiency and effectiveness of the organisation

7. Better Environment of Organisation:-

OB helps to create a healthy, ethical and smooth environment in an organisation.

8. Optimum or Better Utilization of Resources:-

 Study of OB helps to understand employees and their work style and skill better way.
 By understanding this, management can train and motivate employees for optimum utilization
of resources.

9. Importance of OB in the Goodwill of organization:-

Organisational Behavior helps to improve Goodwill of organization.

This is all about the significance and importance of organisational behavior and its impact on overall
business activities.

Q4. What is Nature of Organisation?

Ans- Nature of Organisation:

There are some common features of organisation through which a clear idea about its nature can be
obtained. These are indicated below:

1. Process:-

Organisation is a process of defining, arranging and grouping the activities of an enterprise and
establishing the authority relationships among the persons performing these activities. It is the
framework within which people associate for the attainment of an objective.

The framework provides the means for assigning activities to various parts and identifying the relative
authorities and responsibilities of those parts. In simple term, organi-sation is the process by which the
chief executive, as a leader, groups his men in order to get the work done.

2. Structure:-

The function of organising is the creation of a structural framework of duties and responsibilities to be
performed by a group of people for the attainment of the objectives of the concern. The organisation
structure consists of a series of relationships at all levels of authority.

An organisation as a structure contains an “identifiable group of people contributing their efforts

towards the attainment of goals.” It is an important function of man­agement to organise the enterprise
by grouping the activities necessary to carry out the plans into administrative units, and defining the
relationships among the executives and workers in such units.

3. Dividing and Grouping the Activities:-

Organising means the way in which the parts of an enterprise are put into working order. In doing such,
it calls for the determination of parts and integration of one complete whole on the other. In fact,
organisation is a process of dividing and combining the activities of an enterprise.

Activities of an enterprise are re-quired to be distributed between the departments, units or sections as
well as between the persons for securing the benefits of division of labour and specialisation, and are to
be inte-grated or combined for giving them a commonness of purpose.

L. Urwick defines organisa­tion as: ‘determining what activities are necessary to any purpose and
arranging them as groups which may be assigned to individual.

4. Accomplishment of Goals or Objectives:-

An organisation structure has no mean-ing or purpose unless it is built around certain clear-cut goals or
objectives. In fact, an organi-sation structure is built-up precisely because it is the ideal way of making a
rational pursuit of objectives. Haney defines organisation as: “a harmonious adjustment of specialised
parts for the accomplishment of some common purpose or purposes”.

5. Authority-Responsibility Relationship:-

An organisation structure consists of vari-ous positions arranged in a hierarchy with a clear definition of
the authority and responsibility associated with each of these. An enterprise cannot serve the specific
purposes or goals unless some positions are placed above others and given authority to bind them by
their decisions.

In fact, organisation is quite often defined as a structure of authority-responsibility relationships.

6. Human and Material Aspects:

Organisation deals with the human and material factors in business. Human element is the most
important element in an organisation. To accomplish the task of building up a sound organisation, it is
essential to prepare an outline of the organisation which is logical and simple. The manager should then
try to fit in suitable men. Henry Fayol says in this connection: “see that human and material
organisations are suitable” and “ensure material and human order”.

From these features of organisation, it emerges that, an organisation is essentially an administrative

‘process’ of determining what activities are necessary to be performed for the achievement of
objectives of an enterprise, dividing and grouping the work into individual jobs and, a ‘structure’ of
positions arranged in a hierarchy with defined rela-tionships of authority and responsibility among the
executives and workers performing these tasks for the most effective pursuit of common goals of the
enterprise.

Q5. Write a note on Relevance O.B in todays Business Environment.

Ans- Organisational Behaviour in Business

Organisational behaviour provides solution as well as insight towards solution to many challenges which
are faced by the organisations. Some of the important roles performed by organisational behaviour in
management of business are as follows:-

1. Globalisation- Due to globalisation, organisations are no longer confined to one particular country.
The Manager’s job is changing with the expansion of the organisations across the national borders.
Example, Volkswagen builds its cars in Mexico, Mercedes and BMW in South Africa. Due to globalisation,
the management has to deal with the problems of unfamiliar languages, laws, workethics, management
styles etc. The functions of hiring, training, etc must acquire a global perspective. Organisational
Behaviour helps the management to become flexible, and proactive and enables it to execute the
organisation on a global scale.
2. Managing work Force Diversity- Organisations are a hetrogeneous mix of people in terms of age,
gender, race etc. Managing the workforce diversity hasbecome a global concern. Managers have to deal
with individuals and groups belonging to different ethnic cultures. They have to exercise control and
channelize behaviour in the desired direction. Organisational behaviour help the managers to effectively
deal with work force diversity by promoting its 566 Prabha Renuka Horo Frederick awareness,
increasing diversity skills, encouraging culture and gender diversity.

3. Improving Quality and Productivity- Industries are facing the problem of excess supply. This has
increased competition to a large extent. Almost every Manager is confronting the same problem of
improving the productivity, quality of the goods and services their organisation is providing.
Programmes such as business process reengineering, and total Quality Management are being
implemented to achieve these ends. Organisational Behaviour helps the Managers to empower their
employees, as they are the major forces for implementing this change.

4. Improving customer service-Most of the employees work in service sector. The jobs in the service
sector, is very demanding. It requires continuous interaction with the organisations clients i.e. the
customers. Management has to ensure that the employees do everything to satisfy the customers of the
organisation. The attitude and behaviour of an employee affects the customer satisfaction.
Organisational Behaviour helps the managers to improve customer service and organisational
performance.

5. Improving people skills- Organisational Behaviour helps in better management of business as it helps
in improving the skills of the people. It provides insight into the skills that the employees can use on the
job such as designing jobs and creating effective teams.

6. Innovation and Change- Organisational Behaviour helps in stimulating innovation and change.
Employees can either be a hurdle or an instrument ofchange. It is organisational behaviour which fosters
ideas and techniques to promote innovation and change by improving employees creativity.

7. Work life balance- Organisations that do not help employees to achieve work life balance will not be
able to retain their most talented employees.Organisational behaviour helps i designing flexible jobs
which can help employees deal with work life balance issues.

8. Promoting ethical Behaviour- Sometimes the organisations are in a situation of ethical dilemma
where they have to define right and wrong. It is OrganisationalBehaviour which helps an important role
by helping the management to create such a woek environment which is ethically healthy and increases
work productivity, job satisfaction and organisational citizenship behaviour.

9. Creating a positive Work Environment- Organisational behaviour helps in creating a positive work
environment in today’s where competitive pressures are stronger than before. OB helps to develop
resilience, human strength, and it fosters vitality.

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 UNIT-2
Q1. What is Personality?

Ans- Personality, a characteristic way of thinking, feeling, and behaving. Personality embraces moods,
attitudes, and opinions and is most clearly expressed in interactions with other people. It includes
behavioral characteristics, both inherent and acquired, that distinguish one person from another and
that can be observed in people’s relations to the environment and to the social group.

The term personality has been defined in many ways, but as a psychological concept two main meanings
have evolved. The first pertains to the consistent differences that exist between people: in this sense,
the study of personality focuses on classifying and explaining relatively stable human psychological
characteristics. The second meaning emphasizes those qualities that make all people alike and that
distinguish psychological man from other species; it directs the personality theorist to search for those
regularities among all people that define the nature of man as well as the factors that influence the
course of lives. This duality may help explain the two directions that personality studies have taken: on
the one hand, the study of ever more specific qualities in people, and, on the other, the search for the
organized totality of psychological functions that emphasizes the interplay between organic and
psychological events within people and those social and biological events that surround them. The dual
definition of personality is interwoven in most of the topics discussed below. It should be emphasized,
however, that no definition of personality has found universal acceptance within the field.

The study of personality can be said to have its origins in the fundamental idea that people are
distinguished by their characteristic individual patterns of behaviour—the distinctive ways in which they
walk, talk, furnish their living quarters, or express their urges. Whatever the behaviour, personologists—
as those who systematically study personality are called—examine how people differ in the ways they
express themselves and attempt to determine the causes of these differences. Although other fields of
psychology examine many of the same functions and processes, such as attention, thinking, or
motivation, the personologist places emphasis on how these different processes fit together and
become integrated so as to give each person a distinctive identity, or personality. The systematic
psychological study of personality has emerged from a number of different sources, including psychiatric
case studies that focused on lives in distress, from philosophy, which explores the nature of man, and
from physiology, anthropology, and social psychology.

Q2. Explain Pereption.

Ans- Perception is an intellectual process of transforming sensory stimuli to meaningful information. It

is the process of interpreting something that we see or hear in our mind and use it later to judge and
give a verdict on a situation, person, group etc.

It can be divided into six types −

•Of sound − The ability to receive sound by identifying vibrations.

•Of speech − The competence of interpreting and understanding the sounds of language heard.

•Touch − Identifying objects through patterns of its surface by touching it.

•Taste − The ability to receive flavor of substances by tasting it through sensory organs known as taste
buds.

•Other senses − They approve perception through body, like balance, acceleration, pain, time, sensation
felt in throat and lungs etc.

•Of the social world − It permits people to understand other individuals and groups of their social world.
Example − Priya goes to a restaurant and likes their customer service, so she will perceive that it is a
good place to hang out and will recommend it to her friends, who may or may not like it. Priya’s
perception about the restaurant is good.

Perceptual Process

Perceptual process are the different stages of perception we go through. The different stages are −

•Receiving

•Selecting

•Organizing

•Interpreting

•Receiving is the first and most important stage in the process of perception. It is the initial stage in
which a person collects all information and receives the information through the sense organs.

•Selecting

Selecting is the second stage in the process. Here a person doesn’t receive the data randomly but
selectively. A person selects some information out of all in accordance with his interest or needs. The
selection of data is dominated by various external and internal factors.

•External factors − The factors that influence the perception of an individual externally are intensity,
size, contrast, movement, repetition, familiarity, and novelty.

•Internal factors − The factors that influence the perception of an individual internally are psychological
requirements, learning, background, experience, self-acceptance, and interest.

•Organizing

Keeping things in order or say in a synchronized way is organizing. In order to make sense of the data
received, it is important to organize them.

We can organize the data by −

•Grouping them on the basis of their similarity, proximity, closure, continuity.

•Establishing a figure ground is the basic process in perception. Here by figure we mean what is kept as
main focus and by ground we mean background stimuli, which are not given attention.

•Perceptual constancy that is the tendency to stabilize perception so that contextual changes don’t
affect them.

•Interpreting

Finally, we have the process of interpreting which means forming an idea about a particular object
depending upon the need or interest. Interpretation means that the information we have sensed and
organized, is finally given a meaning by turning it into something that can be categorized. It includes
stereotyping, halo effect etc.

Importance of Perception in OB

We need to understand what the role of perception in an organization is. It is very important in
establishing different role of perceptions like −

•Understanding the tasks to be performed.

•Understanding associated importance of tasks allotted.

•Understanding preferred behavior to complete respective tasks.

•Clarifying role perceptions.

Q3. What do you mean by Attitudes?

Ans- How Psychologists Define Attitudes

Psychologists define attitudes as a learned tendency to evaluate things in a certain way. This can include
evaluations of people, issues, objects, or events. Such evaluations are often positive or negative, but
they can also be uncertain at times.

For example, you might have mixed feelings about a particular person or issue. Researchers also suggest
that there are several different components that make up attitudes.1 The components of attitudes are
sometimes referred to as CAB or the ABC's of attitude.

Components of Attitude

 Cognitive Component: Your thoughts and beliefs about the subject.

 Affective Component: How the object, person, issue, or event makes you feel.
 Behavioral Component: How attitude influences your behavior.
Attitudes can also be explicit and implicit. Explicit attitudes are those that we are consciously aware of
and that clearly influence our behaviors and beliefs. Implicit attitudes are unconscious but still have an
effect on our beliefs and behaviors.

Attitude Formation

There are a number of factors that can influence how and why attitudes form. Here is a closer look at
how attitudes form.

Experience

Attitudes form directly as a result of experience. They may emerge due to direct personal experience, or
they may result from observation.

Social Factors

Social roles and social norms can have a strong influence on attitudes. Social roles relate to how people
are expected to behave in a particular role or context. Social norms involve society's rules for what
behaviors are considered appropriate.

Learning

Attitudes can be learned in a variety of ways. Consider how advertisers use classical conditioning to
influence your attitude toward a particular product. In a television commercial, you see young, beautiful
people having fun on a tropical beach while enjoying a sports drink. This attractive and appealing
imagery causes you to develop a positive association with this particular beverage.

Conditioning

Operant conditioning can also be used to influence how attitudes develop. Imagine a young man who
has just started smoking. Whenever he lights up a cigarette, people complain, chastise him, and ask him
to leave their vicinity. This negative feedback from those around him eventually causes him to develop
an unfavorable opinion of smoking and he decides to give up the habit.

Observation

Finally, people also learn attitudes by observing people around them. When someone you admire
greatly espouses a particular attitude, you are more likely to develop the same beliefs. For example,
children spend a great deal of time observing the attitudes of their parents and usually begin to
demonstrate similar outlooks.

Q4. What is learning?

Ans:- The word learning is used routinely in discussions about teaching in higher education, so it’s
important to clarify what we are referring to when we talk about learning. Educational researchers
agree that learning is much deeper than memorization and information recall. Deep and long-lasting
learning involves understanding, relating ideas and making connections between prior and new
knowledge, independent and critical thinking and ability to transfer knowledge to new and different
contexts.

 Learning is “a process that leads to change, which occurs as a result of experience and increases
the potential for improved performance and future learning”. The change in the learner may
happen at the level of knowledge, attitude or behavior. As a result of learning, learners come to
see concepts, ideas, and/or the world differently.
 Learning is not something done to students, but rather something students themselves do. It is
the direct result of how students interpret and respond to their experiences.
 While there are disciplinary differences in what students learn, it is important to keep in mind
that learning content or information constitutes only one part of learning in university courses.
Regardless of the field of study, students need to have significant opportunities to develop and
practice intellectual skills/thinking processes (e.g. problem-solving, scientific inquiry), motor
skills and attitudes/values that are important to their fields of study. In addition, students need
opportunities to develop interpersonal and social skills (often referred to as soft skills) that are
important for professional and personal success. Examples of these skills include teamwork,
effective communication, conflict resolution and creative thinking. As teaching assistants and
instructors, we need to keep in mind that there is much more to learning than content and that
we should pay attention not only to the content but also to thinking processes and other types
of learning.

Q5. Write short note on Group Discussion.

Ans- What is a Group Discussion?

An average GD usually features 10 to 15 participants. The GD process begins by the announcement of

the topic to the group, which is (usually) followed by a preparation time of 3 to 5 minutes. More than 5
minutes’ prep time may be given only if the GD is a case-study discussion, and has a long case
statement.At the end of the prep time, the panel signals the group to commence the discussion, and
from then on plays the role of a non-participating observer. This means that the discussion is not
moderated or ‘anchored’ by a panellist. The group members must discuss the topic as they deem
appropriate without any kind of suggestion from the panel. The panel expects no particular order of
speakers to be followed nor a minimum or maximum duration of speaking to be followed by individual
participants.The average duration of most GDs is 15 minutes (not including the prep time). In some
exceptional cases (such as IIFT), the GD may continue for up to 45 minutes. One must remember that
the longer the GD goes on, the more seriously the panel looks at the quality of the content (facts,
analysis, explanation and argument) of the participant.The panel usually consists 3 or 4 panellists, who
look at various aspects of the participants’ content and delivery. Please remember that the panellists
may end the GD whenever they want to, and also extend the GD for as much as they want to. Nobody
among the participants is supposed to keep time for the group or act on the assumption that the GD will
end after the 15th minute.
The GD ends in either of the two ways: first, the panel may abruptly stop the GD and announce the end
of the process; second, they may ask a participant (or more than one participant) to summarise the GD.
If you are asked to summarise, do remember what summary means – your summary cannot have
anything in it that was not discussed during the GD. I especially stress this point as the participants who
have been mostly quiet during the GD are usually asked to summarise it, and they tend to take this
opportunity to air their views which are not presented during the discussion. The summary must be an
objective recapitulation of the important points brought up during the discussion, and the conclusion of
the discussion.

What are the various types of Group Discussions?

Most Group Discussions can be divided into 3 kinds:

A) Topical Group Discussions, which are based on current affairs or ‘static’ matters – for example, a GD
on the topic of the recent demonetisation of Rs 500 and Rs 1000 notes would be the former, whereas a
GD on whether India should adopt a presidential model of democracy would be the latter, as it has no
limitation of a time frame.

B) Case-studies, which present the group with a complex business situation that requires a decision to
be made. Such cases usually have multiple problems embedded in the given situation, and both the
individual participants and the group are required to analyse the situation, identify the problems, and
suggest a way out.

C) Abstract Group Discussions, which are called so because they offer us no definite framework of the
topic, and hence no definite direction to take in the discussion. Instead, the participants are required to
interpret the topic in their own ways and demonstrate innovative thinking in doing so. Such topics could
be single-worded, such as ‘Blue’, or a short cryptic sentence, or even an image.

Contrary to popular perception, no one kind of GD is necessarily easier or more difficult than any other,
as the quality of response in any case depends largely on the preparation of the individual and the way
they generally think.

What is the evaluation criteria in a Group Discussion?

The evaluation of participants happens in two broad perspective: 1. Individual qualities 2. Group skills.

1. Individual qualities refer to the competencies that you may demonstrate in or outside the context of
a group. They include the following:

A) Content: What you say during the discussion is looked into from two perspectives – relevance and
comprehensiveness. It is possible that a participant has talked a great deal in a GD, but he or she may
have deviated from the topic significantly, in which case the content is deemed largely irrelevant
without the possibility of further evaluation. If the content has been relevant to the topic, the panel
examines whether your treatment of the topic is superficial or in-depth, distinction we shall discuss in
detail in the next few posts.
B) Analytical skills: The panel is of course interested in your facts, but they also like to see whether or
not you can explore the ‘why’ and the ‘how’ of the subject matter. This is put to the sternest test in a
case-study topic.

C) Reasoning skills: The panel looks at how you support your standpoints, and how you respond to
those of the others, how effectively you can ‘strengthen or weaken’ an argument, how logical you are in
your overall approach to the topic.

D) Organisation skills: You may have the facts, the supports, the explanations, but are you able to
present them in the right order so as to maximise the impact of your good content? The panel wants to
examine this.

E) Communication skills: You may have exhibited all the skills stated above, but can you get your point
across to someone in a simple (not simplistic) language they understand, with relevant illustrations they
can identify with?

F) Creativity: Are you able to bring to the table a novel perspective on the topic? Can you look at a
problem differently from ten other participants and suggest a path-breaking solution? Can you interpret
an abstract topic in ways the others cannot? If yes, the panel looks at you as someone with one of the
rarest of human qualities.

You may have observed that the above skills and qualities can also be directly applied in the evaluation
of the WAT response.

2. Group skills refer to those skills which can only be evaluated in the context of a group. They include
the following:

A) Listening skill: The panel constantly observes whether or not every participant is listening to the
discussion. In my experience, most participants are concerned only with speaking, and feel that they are
done with the job as soon as they have spoken, which is contrary to the spirit of a discussion. There are
many ways a panel may infer that a participant is a poor listener, such as a lack of eye contact with the
group, or a poor summary at the end. It is one of the rarest skills, and a must for a would-be manager.

B) Leadership quality: In highly-charged discussions, one or two participants usually play the role of the
anchor, in that they define the topic appropriately, offer the initial analysis of the keywords of the topic,
and also try to hold the group together in pursuit of a common goal. Such individuals could demonstrate
effective leadership, and score some extra points. However, one cannot score anything extra simply
because one spoke first in the group, or was the loudest.

C) Body language: While assessing the body language, the panel primarily looks at eye contact and hand
movements. The speaker must maintain a consistent eye contact with the entire group as he or she
speaks, and the listeners must reciprocate. If the either doesn’t happen, you allow the panel to infer
whatever they wish to – from a lack of confidence to a lack of interest in the GD to the lack of concern
for others. All very detrimental to the final score. Hand movements are to your speech what
punctuation is to your writing. If used wisely they beautifully enhance the effect of your words; if used
unwisely they attract unnecessary attention and distract the listener from your words. I recommend
that you simply ‘free’ your hands. Do not engage them with something pointless such as playing with the
pen, or tapping on the desk, or running through your hair (common among female participants). The
body has an intelligence of its own. Just leave your hands alone and focus on the topic. The hands will
start moving naturally. Please remember that body language cannot be faked. A skilled observer will
quickly see through such deception. Just focus on the task at hand and the body will obediently follow.
The panel may also pay attention to your voice modulation. A monotonous pitch may reduce the impact
of even the most powerful words unless you are a Tommy Lee Jones! Vary the pitch of your voice in
order to create emphasis wherever needed.

D) Group behaviour: This is usually assessed in a broad distinction – assertive or aggressive. Avoid the
latter no matter what. Assertiveness is a rational display of conviction of one’s thoughts, while
aggressiveness is a display of domination through subtle intimidation. Assertiveness allows room for
flexibility – which is a desired trait – while aggressiveness leads to irrational rigidity of viewpoint. Please
remember that B-schools are looking for sensitive individuals, not skinhead bouncers.

Now that you know how you will be evaluated, focus on specific areas of improvement during your
practice GDs. Identify with the help of your trainer the strengths and weaknesses. Set clear goals for
yourselves, and do not lose the sight of them during your practice.

_____________________________________________________________________________________

UNIT-3
Q1. Examine the nature of Interntional behavior.What are the various International skills

relevant cooperative International behavior?

Ans- International society involves a multitude of actors and their diverse behavior. This behavior is
social in taking account of other international selves: it is behavior intentionally directed at, through, or
involving the psychological field of other international actors. Such is a threat of President Carter to
General Secretary Brezhnev, the sale of Japanese Toyotas to Brazilians, or a state visit by Cambodia's
Premier Pol Pot to China. Even tourism, migration, or foreign student movements are social, in that
those involved must interact with other international actors, such as passport, visa, border and custom
officials, transportation terminal clerks, and merchants.

Ironically, it is when international behavior becomes most organized, most intense, most deadly, that it
tends to lose its social character. Such is war. For war often escalates to the application of force--of
physical power--to overcome, rather than coerce, other wills. This is not to deny that war can be or
should be an extension of politics--communist leaders have become contemporary masters of this as
evidenced by the Vietnam War--but to point to an aspect of all violence.Whether war or otherwise,
manifest international behavior is infinitely divisible. Simply an international negotiation over a trade
agreement can be fragmented into a multitude of different behaviors; the movement of one tourist
across an international boundary comprises diverse behaviors (stopping at a border post, exchange of
greetings with a border official, answering questions, presenting a passport, more questions, presenting
baggage for inspection, and so on). This diverse behavior is given meaning and unity by its underlying
intention, rational meaning, or causation.Intentional behavior comprises acts or actions. Acts are
behavior given meaning by an underlying plan, aim, purpose; actions are behavior toward achieving the
act. Thus, negotiating a treaty is an act, the negotiations the actions; alliance the act, a state visit the
action. Of course, what is action in one context may be an act in another, although some behaviors are
usually only of one kind or another. For example, violence is generally action--it is to achieve some act
(victory, independence, equality, and so on); diplomacy likewise is action toward some goal
(containment, détente, peaceful coexistence). However, tourism, migration, and trade are generally
acts, although they may sometimes be encouraged or manipulated by the elite to achieve particular
goals, such as détente.

Acts and actions are meaningfully unified by their intentions. Reflexes, however, are given causal unity.
They are cause-effect, stimulus-response, action-reaction behavior. Prick a person with a pin and he will
yell "ouch"; let a mob attack another country's embassy and a diplomatic protest is certain; raise the
duties on another nation's goods, and one's own will suffer a similar imposition; go on a military alert
against another, and their alert will follow as though governed by some social Newtonian law.

Reflexes are caused by specific changes, events, behaviors. They are not behaviors chosen as part of a
larger plan, or to achieve a larger goal. They do not define intentions beyond that of responding to the
cause. As an "ouch" is simply a cry of pain, an automatic signal to others that one has been hurt, so a
diplomatic protest is often a cry of concern, an automatic warning that a country's interests have been
stung.

Finally, there are international practices--behavior that is habitual, customary, rule or norm following, or
moral. It is procedural, proper, the right thing to do, the moral way to behave. Rule or norm following
behavior is indicated by passports and visas, diplomatic rituals, air transport requirements, world health
regulations, exchange rates, customs of the sea, and so on. Moral behavior is partially defined by
international law, but also by the moral consensus of the age. In our time, behavior that is
internationally good is antiracist, antimilitaristic, antiright (or antifascist), antiaggression, antigenocide,
or antinuclear proliferation; and prodevelopment, pro-Third World, proindependence, prosovereignty.
proenvironment, or proequality. International society is interwoven with practices. They form a
structure of expectations within which actors can mutually predict behavior and pursue their individual
concerns.

Q2. Explain the meaning and characteristics of Authority.

Ans- Meaning of Authority:

Authority is the formal right to do the work. Henry Fayol defined the authority as “the right to give
orders and the power to exact obedience. Authority gives the management the power to enforce
obedience. It is the power to give orders and make sure that these orders are obeyed.”

According to Simon, authority may be defined as “the power to make decisions which guide the actions
of another. It is a relationship between two individuals—one supervisor, the subordinate. The
superior frames and transmits decisions with the expectation that they will be accepted by the
subordinate. The subordinate expects such decisions, and his conduct is determined by them.”

Writers on management argue that the concepts of power and authority are synonymous, while others
contend that they are distinctly different. Both are viewed by people in many different ways.

Authority is one type of power. It is based on the recognition of the legitimacy or lawfulness of the
attempt to exert influence. But the power is defined as “the ability to exert influence that is the ability to
change the attitudes or behaviour of individuals or groups.”

Koontz and Weihrich distinguish authority and power. Power is a much broader concept than authority.
It is the ability of individuals or groups to induce or influence the beliefs or actions of other persons or
groups. Authority is the right to exercise discretion in making decisions affecting others.

Characteristics of Authority:
1. Basis of Getting Things Done:

Authority provides the basis of getting things done in the organisation. It refers to the right to affect the
behaviour of others in the organisation with a view to performing certain activities to accomplish the
defined objectives.

2. Legitimacy:

Authority is accepted as it has certain legitimacy about it, that is to say it implies a right to secure
performance from others. Such right may be legal or formal, or it may be supported by tradition.
Custom or accepted standards of authenticity. The right of a manager to affect the behaviour of his
subordinates is given to him by virtue of his position or office in the organisation.

3. Decision-Making:

It is a prerequisite of authority. The manager can command his subordinates to act or abstain from
acting in a particular manner only when he has made decisions as regards the course of activities to be
performed by them.

4. Subjectivity in Implementation:

Though authority has an element of objectivity about it, its exercise is significantly influenced by
subjective factors, such as the personality of the manager who is empowered to use it, as also of the
subordinate or group of subordinates with reference to whom it is to be exercised.
Q3. Define Power.Discuss Types of Power.

Ans- Generally, power is the ability to cause or prevent an action, make things happen; the discretion to
act or not act.Ability conferred on a person by law to determine and alter (by his or her own will) the
rights, duties, liabilities, and other legal relations, of himself or others. The ability to do something or act
in a particular way, especially as a faculty or quality.The capacity or ability to direct or influence the
behavior of others or the course of events. “Power refers to a capacity that A has to influence the
behavior of B so that B acts following A’s wishes”.

Many scholars have given various definitions of power. Here mentioned some popular definitions:

 According to Kingsley Davis, “Power as the determination of the behavior of others following
one’s own ends.
 According to Sheriff, “Power denotes the relative Weights of behavior by a member in a group
structure.”
 According to Weber, “Power as the probability that one actor (individual or group) within a
social relationship in a position to carry out his own will despite resistance, regardless of the
basis on which this probability rests”.
 According to Green, “Power is simply the extent of the capability to control others so that they
will do what they are wanted to do.”
 According to Lundberg and others, “By power, we mean the extent to which persons or groups
can limit or regulate the alternative courses of action open to other persons or groups with or
without their consent.”
 According to Michel Foucault. “Power is a complex strategic situation in a given society social
setting”.
 According to Patrick J. Montana and Bruce H. Charnov, “The ability to attain these unique
powers is what enables leaders to influence subordinates and peers by controlling
organizational resources.”

What is Power in Organizational Behavior?

Power may exist but not be used. It is, therefore, capacity or potential. One can have power but not
impose it. Probably the most important aspect of power is that it is a function of dependency.

The greater B’s dependence on A, the greater is A’s power in the relationship. Dependence, in turn, is
based on alternatives that B perceives and the importance that B places on the alternative(s) that A
controls. A person can have power over you only if he or she controls something you desire. (Robbins,
2003)

Organizational power is defined as the ability of the organization structure to utilize all the mandatory
resources in favor of organization development such as man, machine and other resources.Power is not
uniformly distributed to all levels in the organization; however, it is confined to certain departments or
groups of people depending on the level of responsibility and seniority.The motive of assigning power to
these levels is to streamline the underlying activities by designing work structures, circulars, policies,
and their successful implementation for the success of the organization.

Types of Power
1.Formal Power:-

Formal power is based on an individual’s position in an organization. Formal power can come from the
ability to coerce or reward, from formal authority, or the control of information.The formal power is
based on rank—for example, the fire chief or the captain.

2.Legitimate Power:-

In the formal groups and organizations, probably the most frequent access to one or more of the power
bases is one’s structural position. This is called legitimate power.Legitimate power is also known as
positional power. It’s derived from the position a person holds in an organization’s hierarchy.

Job descriptions, for example, require junior workers to report to managers and give managers the
power to assign duties to their juniors. For positional power to be exercised effectively, the person
wielding it must be deemed to have earned it legitimately.

An example of legitimate power is held by a company’s CEO.

3.Expert Power:-

Expert power is influence wielded as a result of expertise, special skill, or knowledge. Expert power is
derived from possessing knowledge or expertise in a particular area.Such people are highly valued by
organizations for their problem-solving skills.

People who have expert power perform critical tasks and are therefore deemed indispensable. The
opinions, ideas, and decisions of people with expert power are held in high regard by other employees
and hence greatly influence their actions.Possession of expert power is normally a stepping stone to
other sources of power such as legitimate power.

For example, a person who holds expert power can be promoted to senior management, thereby giving
him legitimate power.

4.Referent Power:-

Referent power is based on identification with a person who has desirable resources or personal traits.If
I like, respect, and admire you, you can exercise power over me because I want to please you. It is
derived from the interpersonal relationships that a person cultivates with other people in the
organization.
People possess reference power when others respect and like them. Referent power is also derived
from personal connections that a person has with key people in the organization’s hierarchy, such as the
CEO.It’s the perception of the personal relationships that she has that generates her power over others.

5.Coercive Power:-

Coercive power is derived from a person’s ability to influence others via threats, punishments or
sanctions.A junior staff member may work late to meet a deadline to avoid disciplinary action from his
boss. Coercive power is, therefore, a person’s ability to punish fire or reprimand another employee.

Coercive power helps control the behavior of employees by ensuring that they adhere to the
organization’s policies and norms.

6.Reward Power:-

The opposite of coercive power is reward power. People comply with the wishes or directives of another
because doing so produces positive benefits; therefore, one who can distribute rewards that others view
as valuable will have power over those others.These rewards can be either financial – such as controlling
pay rates, raises, and bonuses; or nonfinancial – including merit recognition, promotions, interesting
work assignments, friendly colleagues, and preferred work shifts or sales territories.

In an organization, people who wield reward power tend to influence the actions of other employees.
Reward power, if used well, greatly motivates employees.But if it’s applied through favoritism, reward
power can greatly demoralize employees and diminish their output.

7.Informational Power:-

Informational power is where a person possesses needed or wanted information. It comes from access
to and control over information. This is a short-term power that doesn’t necessarily influence or build
credibility.

For example, a project manager may have all the information for a specific project and that will give
him/her “informational power.

8.Connection Power:-

It is where a person attains influence by gaining favor or simply acquaintance with a powerful
person.This power is all about networking. If I have a connection with someone that you want to get to,
that’s going to give me power.

People employing this power build important coalitions with others. It is a natural ability to forge such
connections with individuals and assemble them into coalitions that give him/her strong connection
power.

9.Political Power:-
This power comes from the support of a group. It arises from a leader’s ability to work with people and
social systems to gain their allegiance and support.

It develops in all the state-owned organizations, especially when a certain political party holds power
and their supporters show power in many aspects in the organizations.By using political power, leaders
can influence others and get some facilities from the organization.

10.Charismatic Power:-

Charismatic power is an extension of referent power stemming from an individual’s personality and
interpersonal style.Charismatic leaders get others to follow them because they can articulate an
attractive vision, take personal risks, demonstrate environmental and follower sensitivity, and are willing
to engage in behavior that most others consider unconventional.

But many organizations will have people with charismatic qualities who, while not in formal leadership
positions, nevertheless can exert influence over others because of the strength of their heroic
qualities.The above-mentioned bases/types of power are normally practiced in many organizations.

But, indeed, all the powers are not seen in a single organization. The uses of powers vary organization to
organization, time to time, person to person, situation to situation, etc.

Q4. Elaborate on the characteristics of learning.

Ans- Let’s explain and understand these characteristics of learning:-

1.Learning involves change:-

It is a reconstruction, combined thinking, skill, information and appropriation in a single unity process.

For example, when a child learns to read they can retain this knowledge and behavior for the rest of
their lives. It is not always reflected in performance. The change from the learning may not be clear until
a situation arises in which the new behavior can occur.

2.All learning involves activities:-

These activities involve either physical or mental activity. They may be simple mental activities of
complex, involving various muscles, bones, etc.

So also the mental activities may be very simple involving one or two activities of mind or complex
which involve higher mental activities.

3.Learning Requires Interaction:-

At the time of learning, the individual is constantly interacting with and influenced by the environment.
This experience makes him change or modify his behavior to deal effectively with it.

4.Constitute Learning:-
To constitute learning, the change should be permanent. Temporary changes may be only reflective and
fail to represent any learning.

5.Learning is a Lifelong Process:-

Learning is a lifelong process of gaining and using the information presented to a person. It is not static.

A person never stops acquiring new information. It keeps a person’s mind active and aware but also
conscious of the world around them.

6.Learning Occurs Randomly Throughout Life:-

Some learning occurs randomly throughout life, from new experiences, gaining information and from
our, perceptions, for example: reading a newspaper or watching a news broadcast, talking with a friend
or colleague, chance meetings, and unexpected experiences.

7.Learning Involves Problems Solving:-

Learning involves problem-solving i.e. understanding and discovering relations between different
contents in a situation.

8.Learning is the Process of Acquiring Information:-

Learning is the process of acquiring information, knowledge, wisdom, and skills. It occurs as a result of
interaction with the person’s environment.

9.Learning Involves far more than Thinking:-

Learning involves far more than thinking: it involves the whole personality – senses, feelings, intuition,
beliefs, values, and will.

If we do not have the will to learn, we cannot learn and if we have learned, we are changed in some
way. If the learning makes no difference it can have very little significance.

10.Experience is Necessary for Learning:-

Some sort of experience is necessary for learning. We can get the experience from direct observation or
from formal approaches to learning such as training, mentoring, coaching and teaching.We can get the
experience from direct observation or from formal approaches to learning such as training, mentoring,
coaching and teaching.Learning is more or less the acquisition of a new discourse, a new way of
speaking, acting, interacting, looking at the world, and knowing it.

It will be successful only when the information gained is used and understood.It is a continuous process
followed by an individual that allows for the acquisition of information, attitudes, and practices, through
observation, seeking previous knowledge, searching out guides, and looking within as well as without. It
is a key process in human behavior.
If we compare the simple ways in which a child feels and behaves, with the complex modes of adult
behavior, his skills, habits, though, sentiments and the like we will know what difference learning has
made to the individual.

Q5. Difference between Leadership and Politics.

Ans- 1. A politician always align with popular public opinions while a leader aligns with proven
principles and values even when they are not in line with public sentiments

2. A politician is campaigning for an election mostly for their selfish ambitions, while a leader is raising
support to advance a worthy cause for their nations' development.

So ask yourself, what cause is my 'leader' advancing

3. A politician is interested in power, position and all the entitlements attached for the sake of it or most
times for selfish reasons, while a leader is interested in getting support for the development and
emancipation of their people even at the expense of positions, entitlements, and his or her life.

4. A politician is thinking about their prosperity while a leader is thinking about the posterity

5. "A politician divides mankind into two classes: tools and enemies." - Friedrich Nietzsche

But a leader sees everyone as potential partners they can work with

6. A politician gives his people left over of his or her fish to eat, while leaders invest in empowering their
people to fish and be free or be independent of them.

So when next you see somebody providing ‘stomach infrastructure’, he’s a politician.

7. Politicians overpromise in order to win an election, but under deliver while leaders under promise but
overdeliver

8. Politicians build their cabinets or teams based on political, tribal, religious and other weak sentiments.
Leaders build their teams based on competence, shared vision and values.

9. A politician doesn’t have permanent friends or allies. They are loyal to the extents that their interests
are taken care of. They are selfish. That is why they will tell you they only have permanent interests but
not permanent friends. Leaders build friends based on shared visions, values and principles. And they
are committed to those values.

10. Politicians mix lies with truths leaving the people confused. So with a politician, the more you look,
the less you see.But a leader says the truth always. They are opened and transparent. With a leader, the
more you look, the more you see.

___________________________________________________________________________
 UNIT-4
Q1. Explain the concept of organization Theory. Distinguish between organization theory and
management theory?

Ans- The evolution of organisation can be traced back to the days when human beings started living in
groups. Organisational theories have certainly changed since the earlier times; because of the change in
the nature of the organisations. Economic and political changes have led to increased size of industrial
concerns.Similarly, technological advances have gained momentum and have radical repercussions on
the nature of business operations and on the nature of society as a whole. One of the most difficult
problems which the managers have to solve is to meet the inevitable changes brought about by
increased automation and computerization. The workers of today have more potential for self direction
and self control consistent with the technological advancement of the society.

In the coming years, people working in industries will have their needs shifted from physiological ones to
comforts and ego needs and the managements will no longer be able to rely upon the satisfaction of the
basic needs of them. At present, an organisation cannot use the old system and has to use a humane
system with a unique character having a culture, values, information system and some meaningful work.
There is a tendency to have shared ideology, shared values, socialization, emphasis on training and
management development, ensuring commitment and organisation as social entity.

Concept of Organisation theory:

An organisation theory furnishes a general frame of reference for explaining understanding behaviour
patterns in organisations. It also furnishes a scientific base for managerial actions for predicting,
controlling and influencing behaviour with a view to increase efficiency of the organisation. It also
encompasses the study of structure, functioning and performance of organisations and of the behaviour
of groups and individuals working in organisations.

According to Joe Kelly “Organisation theory is a set of interrelated concepts, definitions and propositions
that present a systematic view of behaviour Organisation theory is a set of propositions which seeks to
of individuals, groups and subgroups interacting in some relatively patterned explain how individuals
and sequence of activity, the intent of which is goal directed.”

Organisation theory is a macro analysis of an organisation, that is, how the organisation structure is
designed to integrate people with organisation. It is descriptive and predictive about a particular state of
affair in the organisation.In simple words, organisation theory is a body of considerable knowledge and
literature developed over the years reflecting what goes on in organisations. It is a set of propositions
which seeks to explain how individuals and groups behave in different organisational structures and
environment.

Difference Between Oraganisation theory and Management theory:-

Organisation theory:
1. ‘Organisation’ is the struc­ture by which a harmonious inter-relation is established between the
workers and their work.

2. Through organisation autho-rity and responsibility are delegated. These are organisa-tional activities.

3. Organisation is one of the various functions of manage-ment. As a part of management, organisation

helps it to execute its other functions.

4. Organisation acts as a tool in the hands of the managers.

5. Organisation aims at performing the planned activi-ties through creating proper work environment.

6. The setting up of effective organisation structure depends on efficient management.

7. Organisation may be regar-ded as the hands of human body.

Management theory:

1. ‘Management’ is the executive process of getting works accom­plished by the subordinate

em-ployees.

2. The functions of management are administrative activities.

3. Management is the sum total of several activities—making plan, setting up organisation, giving
command and direction, motivating the employees, coordinating and controlling various functions of
the enterprise.

4. With the help of organisation the managers perform their duties and responsibilities.

5. The objective of management is to supervise the accomplishment of work of the subordinate

employ-ees and to give necessary direction for getting the desired result for achieving the pre-
determined target.

6. Efficient management largely depends on strong organisation.

7. Management may be compared to the whole human body.

Q2. What do you mean by organization structure? What are its characteristics?

Ans- Organizational structure is a system used to define a hierarchy within an organization. It identifies
each job, its function and where it reports to within the organization. This structure is developed to
establish how an organization operates and assists an organization in obtaining its goals to allow for
future growth.

Characteristics of Organizational Structures

A divisional structure is suitable for organizations with distinct business units, while a geographical
structure provides a hierarchy for organizations that operate at several locations nationally or
internationally.

A functional organizational structure is based on each job's duties. A matrix structure, which has two or
several supervisors for each job to report to, is the most complicated but may be necessary for large
organizations with many locations and functional areas.

1.Reporting to a Centralized Location:-

Although there are many types of organizational structures developed to meet each organization's
needs, all of them provide a hierarchy that reports to a centralized location and group of executives. The
highest ranking member of an organizational chart is one or several top executives referred to as the
president, chief executive officer or chief operating officer.

2.Job Descriptions to Allow for Growth:-

When an organizational structure is designed, job descriptions can be developed to not only meet an
organizations goals, but allow for organizational and employee growth. Internal equity and employee
retention are a key to successful operations. Recruitment is also one of the highest investments for
organizations, so ensuring employees have promotional opportunities and job security can assist in
reducing recruitment costs.

3.Salary Structure in an Organization:-

Organizational structure is also a fundamental core to create salary structures for an organization. Once
the structure is established, salary ranges can be created for each job in the organization. In most cases,
each job is aligned to a salary grade, and each grade has a specified salary range. This allows an
organization to meet its financial goals and ensures salaries are distributed fairly within financial
budgets.

4.Allow for Organizational Expansion:-

If an organization expands, the organizational structure allows room for growth. This can include adding
additional layers of management, new divisions, expanding one or several functional areas or appointing
additional top executives. When the structure is reorganized for expansion, it provides the foundation to
edit salaries and job descriptions quickly and efficiently with minimal disruption to an organization's
operation.

Q3. Explain forms of organization structure.

Ans- The forms of organization structure are as follow:-

1.Functional Organizational Structures:-

Perhaps the most familiar, functional structures divide the organization vertically into functional groups,
with employees of similar specialties working together to support the entire organization. A mid-sized
manufacturing company, for example, could be divided into functional areas that include
administration, marketing and sales, and production. These functional areas could be further divided.
For example, administration would include departments for human resource management and
accounting. Production might be subdivided into development, production, and fulfillment and shipping.

Employees within these sections typically work with peers who have similar backgrounds and job
descriptions. This provides for useful cohesion within the work unit, but it also tends to isolate the
departments so that the employees lose sight of how their work impacts the company as a whole.

2.Divisional Organizational Structures:-

Divisional structures also divide the organization vertically, but the divisions are based on related
subjects, such as product line, project or geography. For example, a distributor of office supplies could
organize its divisions by stationery and desk supplies, office furniture and electronics. A national hotel
chain could have a division for each region where it has facilities.

In these structures, employees of many different specialties work together, along with administrative
specialists, who support the line employees. When large corporations adopt this model, each division
operates as its own company. This type of structure offers flexibility, and the multidisciplinary groupings
of employees can stimulate innovation. However, it can also set up unhealthy competition among
divisions.

3.Matrix Organizational Structures:-

The matrix structure is an effort to combine the best of both worlds. In addition to the typical functional
structure, in which employees work in groups of related specialties, various employees may be assigned
to additional bosses for project work, often on an ad hoc basis.

For example, a software company aiming to develop a new application for use by school children might
pull together a team that includes engineers and programmers from one functional area, along with
artists and market specialists from other departments. As long as the project lasts, these employees
would report to both the team leader on project business and their normal supervisors for day-to-day
work.

This organizational structure is highly flexible and the cross-disciplinary teams support innovation, but
problems can arise from the unusual reporting system. In particular, employees may feel overworked
and burdened by having two jobs to do, with two sets of responsibilities for their work time.

4.Flat and Flatter Future Structures:-

With the continuing need for innovation and rapid response to changing conditions, some businesses
are adopting structures that reduce the vertical or hierarchical chain of command in favor of
organizational modes that enhance communication between levels and employees. The matrix structure
could be seen as a bridge to the concept of flat organizations. Other forms have been coined flat, flatter,

5.Flatarchy and Holocracy.:-

The flat structure forms one end of the spectrum, with all employees operating on the same level,
without job titles, managers or lines of authority. Flatter and flatarchy structures insert a reduced
hierarchical structure into the melting pot, but they still allow for ad-hoc teams and other circles of work
that are based on project needs.

The holocracy structure maintains levels but places working circles at each level, rather than having the
top levels occupied by a single individual. The aim in all of these structures is to increase information
sharing, support innovation and create a nimble structure that responds quickly to external conditions.
Most of the companies adopting these non-traditional structures are small to mid-sized, and evidence
shows that they are achieving these goals to some degree.

Q4. Discuss in detail the various forces that causes changes in the organization.

Ans- External Forces of Organizational Change

The external forces of change stem up from the external environment. These forces have been
described below:

1.Political Forces: With the rapidly changing global political scenario and the upheavals in the global
politics, the worldwide economy is equally undergoing a quick change and presenting several challenges
before the organization in the form of changes in regulations, policies and also the economic framework
in the form of globalization and liberalization.

2.Economic Forces: The economic forces influence organization’s change management strategy by
either presenting opportunities or challenges in the form of economic uncertainties or growing
competitive pressures.

Various factors such as changes in the business cycle, prevalent inflation or deflation rate in the
economy, fluctuation in the interest rates, economic recession, changes in the economic policies or tax
structures, import/export duties, fluctuation in the oil prices globally, financial stability of the country
and also loss/increase in the consumer confidence towards the economic conditions of the country are
some of the crucial factors. For example change in the global market, economies create a ripple like
effect and affect the Indian markets too in terms of fluctuations in the capital markets, employment
opportunities and rise or fall in the consumer demand.

3.Technological Forces: Technological advancements and innovations in communication and computer

technology, have revolutionized the organizational functioning by facilitating newer ways of working and
added in newer range of products/services thus creating a need for developing a framework for
managing change effectively and proactively responding to the challenges as a result of these changes
due to the technological forces.

Advancements in the technological field greatly contribute to the overall economic development in the
country and also the organization’s success or failure in the competitive environment. One of the
glowing examples is Singapore, which has emerged as one of the powerful economies within recent
times in spite of no natural resource availability. With the usage of Information Technology in the
strategic decision making and overall planning, today Singapore holds the status of being the world’s
first completely networked economy in which all homes, administrative offices,
schools/colleges/professional institutions, businesses and government branches are connected
electronically.

4.Governmental Forces: Governmental regulations and also the extent of intervention may influence
the need for change. The following governmental forces have been described below which determine
the need for organizational change:

 Deregulation: Deregulation is associated with decentralization of power or economic

interventions at the state level or lessening of the governmental intervention in the economy.
For example, as an outcome of deregulation few sectors/industries like insurance, banking,
petroleum and many others which were previously under the direct control of the government,
are now being handed over to the private players or companies.
 Foreign Exchange: Foreign exchange rates directly affect the international trade, as the
variations in the exchange rates influence the currency payment structure. Issues or constraints
with the foreign exchange rate may compel the government in moving ahead with the
imposition of import restrictions on selected items or deregulating the economies for attracting
the foreign exchange for investment purposes.
 Anti-Trust Laws: Anti-Trust laws are enforced by most of the governments for
restricting/curbing unfair trade practices. For example, these restrictions have been enforced in
India by enacting an act called Monopolies and Restrictive Trade Practices (MRTP), 1971.
 Suspension Agreements: Suspension agreements are the agreements which are finalized
between the governments to waive off anti-dumping duties.
 Protectionism: Due to the growing competitive pressures, most of the governments try to
enforce certain regulations or intervene for safeguarding their threatened industries. For
example, by enforcing certain trade barriers, the Indian government protects the local industries
such as Handicrafts and Textiles. These trade barriers may take the form of either anti-dumping
laws, levy of tariffs or import duties, quantity quotas, and various government subsidies.

5.Competitive Pressures: The increase in the global competition and the challenges enforced due to the
competitive pressures, force the organizations in changing their strategies for ensuring their global
presence. Japanese majors like Nissan, Toyota and Mitsubishi, have been continuously relocating their
manufacturing as well as their assembling operations to South East Asian countries for achieving a
competitive advantage in the form of reduced cost of labour and economies of scale.
6.Changes in the Needs and Preferences of Customers: Changes in the needs of the customers are
compelling the organizations to adapt and innovate their product offerings constantly for meeting the
changing demands of the customers.

Internal Forces of Organizational Change

1.Systemic Forces: An organization is made up of a system and several subsystems which are
interconnected, just like the way in which a human system functions. The subsystems of an organization
are in direct interaction and influence the organizational behaviour as well. A change in any subsystem,
result in a change in the existing organizational processes and the complete alignment as well as the
relationship.

2.Inadequate Existing Administrative Processes: Each organization function by following a particular set
of procedures, rules, and regulations. With the changing times, an organization needs to change it’s
rules and existing administrative processes, failing which the administrative inadequacy might result in
organizational ineffectiveness.

3.Individual/Group Speculations: In anthropological terms, it is understood that man is a social animal

whose desires and requirements keep changing with the changing times, which result in differences in
individual as well as group expectations. Various factors on the positive front such as how ambitious an
individual is, achievement drive, career growth, personal and professional competencies and negative
factors such as one’s own fears, complexes and insecurities are some of the inter-individual as well as
inter group factors which influence an organizational functioning on a day to day basis and also its
overall performance.

4.Structural Changes: These changes alter the existing organizational structure as well as its overall
design. Structural changes can be regarded as a strategic move on the part of the organization’s to
improve profitability and for achieving a cost advantage. These changes may take the form of
downsizing, job redesign, decentralization, etc. For example, IBM for introducing reforms in its existing
system and procedures and for achieving cost effectiveness has enforced downsizing strategy.

5.Changes in the Technology: Within an organization, the technological changes may take the shape of
changes in the work processes, equipment, level/degree of automation, sequence of work, etc.

6.People Focused Change: In this context, the major focus is laid on people and their existing
competencies, human resource planning strategies, structural changes and employee reorientation and
replacement of an employee which mean shifting an employee to a different work arena where his/her
skills are best suited. It may also be involving establishing new recruitment policies and procedures in
line with the changes in the technology.

7.Issues with the Profitability: This can also be one of the primary causes which compel an organization
to restructure (downsize or resize) or to reengineer themselves. The organization may have profitability
issues either due to a loss in revenue, low productivity or a loss in the market share.
8.Resource Constraint: Inadequacy of the resources, may result in a powerful change force for the
organization.

Q5. What are the common designing of an organization ? Explain its steps.

Ans- SOME COMMON DESIGNING OF AN ORGANIZATION

1. Functional Design:

This is the oldest and the most commonly used design.The organisation is departmentalised on the basis
of various functions, viz.., Materials Management production and Operations Management, Finance and
Accounting, Marketing Management, Hunan Resource Management and Research and Development
etc.The activities or functions of all these departments are coordinated by the chief executive of the
organization. The salient feature of this design is that there is specialised division of work. The various
activities are carried by the specialised persons.

The most important advantage of this design is that it permits division of labour and applies
specialization. It is easily understandable by the employees. Each department works in coordination
with each other to achieve the end results. Hence duplication is eliminated.

The main disadvantages of this type of design are that employees may lose sight of the organization as a
whole. Practically it becomes difficult to have horizontal integration across the functional departments.
Another disadvantage of this design is that there is no accountability of each function for total
results.This design may be applied successfully when an organisation has a narrow product line, pursues
a low cost or focused business strategy. To appoint various specialised managers may be a costly
proportion. It is oldest and the simplest type of organisational design and often represents as a base
from which other types of design evolve.

2. Place Design:

Such a design is usually adopted by multinational organisations or corporations to meet the local needs.
It involves in establishing an organization’s primary units geographically while retaining significant
elements of the functional design.It is also known as geographic area design. It permits locating different
tasks required to serve a geographic territory under one manager rather, than grouping various
functions under different managers for all tasks in one central office.

The important disadvantage of this design is that there is duplication of the functions. The following
diagram shows duplication of functions in all locations.There may be a problem of lack of
communication among various divisions. Moreover, innovation generated in one division may not be
adopted by other divisions.

3. Product Design:

Product design aims at assigning worldwide responsibility for either specific or certain number of
products. Separate operating divisions operate within one firm. The manager who is in charge of a
product division has authority for the product line on global basis.A product division is an autonomous
unit and operates as profit on global basis. A product division is an autonomous unit and operates as
profit centre. The managers of the product divisions have requisite authority to make important
decisions. Product design is usually followed in global enterprises multinational corporations.

Important advantage derived from this system is that company is able to match its marketing strategy to
the specific needs of the customers. Organisations adopting product design usually begin with functional
design and then add some place design as they begin to serve new geographic markets.For tackling
multiple customers and management problems this is the next suited method. This system can be
successfully followed in case of addition of new product lines, diverse customers, technological
advancements and uncertainty of the company’s business environment.

4. Multidivisional Design:

Multidivisional designs are usually referred as the M-form. In such a design tasks are organised by
division on the basis of the product or geographic area, in which the goods or services are sold. The
primary responsibility lies with the divisional heads to take the operations decisions with regard to their
units.

They are also concerned with the strategy formulation, allocation resources to various divisions,
communicating with shareholders and others. The divisional heads are supported by specialised people
in their respective fields like accounting marketing and sales, etc.

STEPS OF DESINGNING OF AN ORGANIZATION

STEP 1: IN-DEPTH PROCESS ANALYSIS

If comprehensive organization assessment has not been done during the leadership process as part of
direction setting with senior leadership, it must be done here as preparation for design sessions. Once
assessment is completed, it is often necessary to analyze core work processes and computer system
flows at more levels and in more detail. In-depth process analysis starts where the larger assessment
process leaves off, identifying and analyzing processes which need to be understood and mapped in
more detail before conscious and accurate design decisions can be made regarding them. If there are
other systems or structures which need to be better understood, they may also be analyzed in more
depth before moving to redesign decisions. In-depth analysis can take from a few days to a few weeks,
depending on the need for more data.

STEP 2: ORGANIZATION DESIGN

The macro design session can last from four or five days, depending on the size and complexity of the
organization. During this session, participants step outside the current organization and develop a
comprehensive set of recommendations for the larger or “macro” organization, aligning it with current
strategies and business demands. They outline the “ideal organization,” identifying ideal processes,
structures, and systems for the whole organization. They will streamline and simplify core processes
spanning the entire business, and reconfigure how business units, departments, support groups and
teams organize around those processes. This often eliminates functional silos and integrates people and
resources around activities critical to organization success. As units are created, dedicated and shared
resources are also assigned to various sections or levels of the organization.

Participants will also adjust or rethink coordination systems such as policies, procedures, and
information sharing, and development systems like recruitment and selection, training, performance
management, and rewards. After the “ideal” design has been outlined, they will identify a startup date
to begin implementation of the ideal design. They then outline a “startup” organization, different from
the ideal, which identifies what portions of the ideal organization will be in place at startup. The startup
organization becomes a target for initial implementation, to allow more streamlined and faster
implementation during early stages. The entire macro design session can be both grueling and
exhilarating, as participants wrestle in earnest with how to organize to improve the business and best
achieve the strategy. It is always a relief and generally very exciting to have tangible ideal and startup
designs.

STEP 3: TEAM LEVEL DESIGN

In some cases, the macro design session includes team level design. In many cases, however, a micro
design session is needed to detail team configurations, roles, responsibilities, and staffing numbers. The
micro design session generally takes from one to three days. In this session the number and size of
teams is determined, and specific roles and responsibilities are designed for each team created. The
micro design helps clarify how the macro design will fit together at all levels of the organization.

STEP 4: TRANSITION PLANNING

Once design recommendations have been reviewed and accepted by the organization, the next task is to
develop transition and implementation plans. Transition is the period between design and startup,
which may be two or three weeks to six months, depending on the size of the organization, the
complexity of the design and how quickly they can or need to implement. Implementation is the period
of time between startup and the ideal. During transition planning, participants will identify all transition
and implementation activities necessary to successfully implement the new design throughout the
organization. They will identify transition activities such as employee communication, leadership
training, or staffing changes which need to happen before startup begins. They will also identify
implementation tasks such as tracking and measurement of the new design, which will be put in place at
startup or sometime after startup on the journey to building the ideal organization.After identifying
transition and implementation activities, participants sequence these on a master implementation time
line. For each task or set of activities, they outline action plans, including what is to be accomplished,
who is responsible for getting it done, and by when they will have it in place. The time line and action
plans serve as a concrete guide for implementing the new design throughout the organization. Instead
of being left to chance, implementation of the new design becomes a well orchestrated, planned, and
executed project.
STEP 5: TEAM DEVELOPMENT AND EMPOWERMENT PLANNING

Individuals or teams are considered “empowered” when they are clear about boundary conditions
(expected results, non-negotiables, authority levels, and time constraints) and have the knowledge,
information, skills, resources, and support they need to achieve their charter. Empowerment planning is
the process of identifying the boundary conditions, knowledge, information, skills, resources, and
support that teams will need, and then planning how and when those items will be transferred to or
developed into the teams.

During the team development and empowerment planning session, middle management and team
leadership will identify team empowerment needs and outline plans for developing the teams and
getting them the resources and support they need to succeed. This session can normally be completed
in one or two days. This step is often skipped in the organization change process, as organizations speed
on to team implementation before they know what is fully required of their teams. It important to
complete this task before chartering or starting up new teams, since it is in this session that leaders
become clear about what they will truly expect from their teams and how they will help support and
develop them over time.

STEP 6: NEW DESIGN IMPLEMENTATION AND FOLLOW-UP

The time period between approval of the new design and the designated startup date for
implementation of the design is called transition. It is during this transition period that new jobs or job
changes can be posted, interviews can be held, management changes can be decided and announced,
and new structures, processes, policies, and plans can be explained in preparation for startup
implementation. Leadership training and technical changes may also take place during transition. The
purpose of transition is to make sure the organization is ready before it pulls the startup lever to begin
implementation of organization changes and design plans.At startup, the designated date for beginning
implementation, the organization breaks from the past and begins to function in the new design. This is
when teams are co-located, new reporting relationships begin, resources are moved, and everyone in
the organization begins the new way of operating. Some aspects of the design may be implemented
during the first few weeks of startup. For example, base lines for measuring and tracking performance in
the new design should be established at or near startup. Other design aspects such as the computer
delivery systems, or the reward systems may require further study or development before they can be
effectively adjusted or implemented during this phase.

STEP 7: TEAM STARTUP AND DEVELOPMENT TRAINING

One of the purposes of startup training is to bring newly formed business units and teams together
around a vision of what they must accomplish in the new design. Teams, business units, and support
groups are often pulled together to share expectations, learn about each other, and identify mutual
requirements, especially if they have a high degree of interdependence. Leaders explain team
development plans to their teams and discuss how those plans can be implemented over time. Teams
can begin receiving training in the technical, business and social skills required for them to manage their
part of the business and improve their performance. The training provided will depend on the
development needs of each team and will come from a variety of different sources, including internal
subject matter experts. We recommend that organizations invest in their own training staff who can
provide ongoing planning, assessment, and delivery.Another purpose of team startup and development
training is to jump start the development of teams and how they work together. In the program
Developing High Performance Teams, teams go through a focused team development process together,
where they learn about fundamentals of High Performance teams, develop their team charter, learn to
run effective meetings, identify key customer issues and requirements, learn to manage and adjust their
core work flow process, clarify team and individual roles and responsibilities, and begin the goal-setting
and score-keeping process to measure and improve team performance. This education and
development training quickly elevates the team to a higher level of knowledge and capability, allowing
them assume responsibility and focus more quickly as a team. Team startup and development training
can take three to four days if delivered continuously, or be spaced out over a period of eight weeks to
six months, if delivered in sequenced modules.

STEP 8: ADJUST AND REFINE COORDINATION AND DEVELOPMENT SYSTEMS

Organization-wide coordination systems include communication and information sharing, decision

making and authorization, measurement and feedback, goal setting, and policies and procedures.
Organization-wide development systems include recruitment and selection, orientation, training and
development, progression and promotion, performance evaluation and feedback, compensation, and
recognition. During macro organization design, the ideal concept for each of the coordination and
development systems will have been identified. The ideal concept for many of those systems can and
should be implemented at startup. However, adjustment or serious redesign of some of the systems
such as compensation or performance evaluation, often requires additional time to study alternatives
and develop appropriate implementation plans.During startup, the organization charters a task force for
each of the key coordination and development systems needing continued review and adjustment. Each
task force studies, makes recommendations for appropriate adjustment or redesign of their designated
system, and then guides and monitors implementation of that system throughout the organization.
These system task forces are normally staffed by volunteers from a cross-section of the organization.
Refinement and implementation of these key coordination and development systems may be an
ongoing process for a year or two after startup, until the systems are effectively integrated into the new
organization design.

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UNIT-5
Q1. What is the concept of organization effectiveness and change?

Ans- Organizational effectiveness can be defined as the efficiency with which an association is able to
meet its objectives. This means an organization that produces a desired effect or an organization that is
productive without waste. Organizational effectiveness is about each individual doing everything they
know how to do and doing it well; in other words organizational efficiency is the capacity of an
organization to produce the desired results with a minimum expenditure of energy, time, money, and
human and material resources. The desired effect will depend on the goals of the organization, which
could be, for example, making a profit by producing and selling a product. An organization, if it operates
efficiently, will produce a product without waste. If the organization has both organizational
effectiveness and efficiency, it will achieve its goal of making a profit by producing and selling a product
without waste. In economics and the business world, this may be referred to as maximizing profits.The
main measure of organizational effectiveness for a business will generally be expressed in terms of how
well its net profitability compares with its target profitability. Additional measures might include growth
data and the results of customer satisfaction surveys.

Highly effective organizations exhibit strengths across five areas: leadership, decision making and
structure, people, work processes and systems, and culture. For an organization to achieve and sustain
success, it needs to adapt to its dynamic environment. Evaluating and improving organizational
effectiveness and efficiency is one strategy used to help insure the continued growth and development
of an organization.Measuring organizational effectiveness can be an inexact science, since each
individual entity will have a different list of criteria and priorities to weight and consider through self-
assessment. Understanding a company's level of organizational effectiveness is important for several
reasons: it serves as a check-in to see how well internal procedures are meeting an initial vision, it
provides investors, donors, or employees with an idea of the company's strengths, and it highlights
areas of ineffectiveness that can be the focus of improvements.In many cases, a business' success or
failure cannot be measured by financial performance as well. Even a company that is currently making a
profit may be ineffective if it is failing to meet the core values of its mission statement, attract and retain
talented workers, and plan for the next generation of projects.

Organizational effectiveness measures the big-picture performance of a business, across a broad range
of criteria. Financial performance, long-term planning, internal structure, and adherence to core values
may all be critical components in understanding organizational effectiveness.To get a clear idea of an
organization's effectiveness, it is important to create a clear list of criteria to assess. No two
organizations will have the same list of criteria, which is why many for-profit and non-profit groups
measure effectiveness through self-assessment. Employees and company personnel are often in the
best position to intimately understand the needs, goals, and performance of their company. Self-
assessment of effectiveness can also help company personnel reconnect with the initial mission of an
organization. By working creatively to invent new business strategies for areas of ineffectiveness,
workers may develop a stronger sense of loyalty, purpose, and dedication to the job.Since organizational
effectiveness is difficult to express in a concrete formula, a company may choose to state the results of
an assessment through specific goals achieved or desired. Turning up areas of ineffectiveness can also
be tremendously beneficial to an organization. Areas that need improvement give a company a concrete
strategy for the future, and allow workers, shareholders, donors, or customers to get excited about the
improvements coming down the pipeline. Treating current weaknesses as a road map for future changes
is a great way to increase effectiveness.
Organizational change is necessary to make any substantive improvements.

However, change is not easy … simply mandating change will often produce negative reactions from
workers. In worst-case scenarios, change projects can even fail completely. The benefits of change
management include:

 Better project outcomes

 Increased efficiency
 Greater support from employees
 Risk mitigation

Among others. As with many other business fields, there are several schools of thought in change
management. Most contemporary change managers, however, focus on driving change from the
individual level. Many change managers and organization development (OD) professionals focus on
areas such as:

 Training employees and ensuring that they have the skills they need to effect change
 Developing a communication strategy that minimizes resistance and maximizes support
 Creating mechanisms that reinforce change over the long term
 Change management’s importance should not be understated. After all, improving
organizational performance – and effectiveness – depends entirely on the success or failure of
organizational change projects.

Q2. Explain major forces of change.

Ans- Organizational change is the transformation or adjustment to the way an organization functions.
Organizations adjust to small changes all the time, possibly looking to improve productivity, responding
to a new regulation, hiring a new employee, or something similar. But on top of these little adjustments
we make at work all the time, there are larger pressures that loom over us, like competition, technology,
or customer demands. Those larger pressures sometimes require larger responses.

What forces create these changes?

External forces are those changes that are part of an organization’s general and business environment.
There are several kinds of external forces an organization might face:

Demographic. A changing work demographic might require an organizational change in culture. For
instance, Avon built and grew their business around door-to-door cosmetic sales, with the stay-at-home
wife and mother as their primary front line employee. When more women entered the workforce in 9-
to-5 jobs, Avon had to shift gears and find new ways to get their products in front of their customers.

Social. Changing social trends can pressure organizations into making changes. Consumers are becoming
more environmentally conscious, a trend which has pushed fast food restaurants to replace Styrofoam
containers with paper. Manufacturers of cleaning products changed product formulas to omit
phosphorus and other environmentally threatening chemicals. Tobacco companies have buckled under
the changing image of smokers, the dangers of their products, and some have started looking into
eCigarettes and other smoking alternatives to stay in business.

Political. Government restrictions often force change onto organizations. This can be something as
simple as a change in minimum wage for employees, or as complex as rules and restrictions governing
fair competition in business. For instance, when the Affordable Health Care act was put into place,
businesses had to change their operations and put steps into place to confirm that all employees had
healthcare coverage to comply with the new law.

Technology. Still have your VHS player? The founder of Blockbuster wishes you did. Technological
changes can make or break a business. Whether new technology is introduced industry-wide, as when
the laser was introduced to modern medicine, making surgeries easier and safer; or when it’s introduced
to end users, as when consumers stopped renting videos to enjoy the cheaper, more convenient
streaming services like Netflix, organizations must change to accommodate new technologies or suffer
the consequences.

Economic. During the 2008 recession, consumers lost their jobs and cut back on their spending. These
economic downturns had a major impact on businesses. Banks failed. General Motors and Chrysler filed
for bankruptcy. Survival meant adapting to change. Companies like Lego, who experienced stagnant U.S.
sales during this time, took the opportunity to build their markets in Europe and Asia. Netflix realized
the potential of providing in-home entertainment to families that had cut back their entertainment
budgets and grew their subscriptions by 3 million subscribers in 2009 alone. Meanwhile, in the midst of
spiking fuel prices, gas guzzling Hummers were no longer en vogue and quietly went out of business.

Q3. Discuss the resistance to change in an organization.

Ans- Organizational Resistance

Organizational inertia is the tendency for an organization as a whole to resist change and want to
maintain the status quo. Companies that suffer from inertia become inflexible and can’t adapt to
environmental or internal demands for change. Some of the signs that organizational inertia is in play
are through internal power struggles, poor decision-making processes and bureaucratic organizational
structures.

Organizational cultures and reward systems can foster resistance or acceptance of change. A culture
that promotes high levels of trust and cooperation lays the foundation for employees and their
acceptance and instigation of change. If employees are punished for honest mistakes, if new ideas aren’t
rewarded, and managers aren’t prepared for daily issues with proper training, then that organization is
ripe for change resistance.

Timing of change can also play a role in organizational inertia. If the organization is still recovering from
a large-scale change in organizational structure, that would not be the time to introduce a new
information management system. Employees will be likely to resist the change and turmoil that goes
along with a second change. Thinking about the order and timing of a planned change can help
managers avoid employee resistance.

How to Encourage Change

That’s a lot of resistance to change. If organizational inertia, group resistance and individual resistance
can get in the way of initiating positive or necessary change, how can managers make sure that they
minimize change resistance and do the right thing for the organization?

Here are some ideas and tactics that can help:

 Education and communication. If there is fear of the unknown, organizations shouldn’t

compound that with a lack of information. Face-to-face meetings, newsletters, and updates can
often help reduce those fears. A disadvantage of this, though, is the ability to communicate to
manage change effectively to large numbers of people.
 Participation and involvement. People who participate in change are less likely to resist it.
Managers can involve employees in the change process, creating an ownership around it that
minimizes resistance. The disadvantage of this approach is that it’s somewhat time consuming
and managers do have to relinquish some control over change implementation.
 Facilitation and support. Facilitation and support requires active listening and counseling. These
methods can be highly effective when dealing with individual resistance, but are time
consuming and run a high risk of failure.
 Negotiation and agreement. This approach recognizes the role and power of others in the
success of the change effort. Trade-offs and incentives are offered in exchange for acceptance.
This is a relatively easy way to deal with resistance but can be expensive and lead to more
negotiation.
 Manipulation and cooperation. Changing employees focus and attention to other issues can be
a quick and easy way to minimize resistance to change, but it can lead to mistrust and
resentment on behalf of those manipulated.
 Explicit and implicit coercion. If there’s no time and no choice, managers can rely on force to
push past change. This method is quick and effective, but it doesn’t build commitment.

Managers can implement change successfully by using a combination of these methods. Understanding
the source of resistance is helpful. But none of the solutions above deal with organizational inertia,
which requires a broader set of organizational activities. We’ll talk about that, but first, let’s focus on
models and processes for introducing planned change

Q4.What are the reasons for organizational change? Explain the procedures of change in an
organization.

Ans- Reasons of Organisational Change:

(A) External Pressures:
i. Change in Technology and Equipment:

Advancements in technology is the major reasons(i.e., external pressure) of change. Each technological
alternative results in new forms of organization to meet and match the needs.

ii. Market Situation:

Changes in market situation include rapidly changing goals, needs and desires of consumers, suppliers,
unions etc. If an organization has to survive, it has to cope with changes in market situations.

iii. Social and Political Changes:

Organisational units literally have no control over social and political changes in the country. Relations
between government and business or drive for social equality are some factors which may compel for
organisational change.

(B) Internal Pressures (Pressures for Change from Within the Organisation):

i. Changes in the Managerial Personnel:

One of the most frequent reasons for major changes in the organisation is the change of executives at
the top. No two managers have the same style, skills or managerial philosophies.

ii. Deficiencies in the Existing Organization:

Many deficiencies are noticed in the organisations with the passage of time. A change is necessary to
remove such deficiencies as lack of uniformity in the policies, obstacles in communication, any
ambiguity etc.

iii. Other Factors:

Certain other factors such as listed below also demand a change in the organisation.

 Employee’s desire to share in decision-making

 Employee’s desire for higher wage rate
 Improvement in working conditions, etc.

Procesdures of Organisational Change:

Unless the behavioural patterns of the employees change, the change will have a little impact on the
effectiveness of the organisation.
A commonly accepted model for bringing change in people was suggested by Kurt Lewin in terms of
three phase process:-

(1) Unfreezing:

The essence of unfreezing phase is that the individual is made to realize that his beliefs, feelings and
behaviour are no longer appropriate or relevant to the current situation in the organisation. Once
convinced, people may change their behaviour. Reward for those willing to change and punishment for
others may help in this matter.

(2) Changing:

Once convinced and ready to change, an individual, under this phase, learns to behave in new ways. He
is first provided with the model in which he is to identify himself. Gradually he will accept that model
and behave in the manner suggested by the model. In another process (known as internalisation), the
individual is placed in a situation where new behaviour is demanded of him if he is to operate
successfully.

(3) Refreezing:

During this phase, a person has to practice and experiment with the new method of behaviour and see
that it effectively blends with his other behavioural attitudes. Reinforcement, for creating a permanent
set in the individual, is provided through either continuous or intermittent schedules.

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