Q3

a) Principal agent theory can be defined as two types of categories, Pricipal which can be
a business owner,shareholder of a business,or an executive having partnership.Principle
owns the collective business.In contrast agent be defined as a worker or manager of
organistaion giving his contributions to the business signed under a contract.However
principal agent theory has lead to many problems as interests of both the principle and
agent maybe different, example an agent may find it comfortable to work 48hours a
week and likely to have Friday leave earlier whereas an principal would like his agent to
pay extra hours and duration to firm.Thus principle agent theory can be determined by
the human behaviour as well. As their has emoyeer-employee contract taken place
accordingly which the employeer has bought behaviour of employee as a
contract.Different modes of measures that employer may take against his employee
when faced by differences in interest can include punishing the employee by evidence
(termination,resignation,enforcement measures etc) or the employeer can keep a check
on his employee by monitoring and policing. However there are some steps that can be
taken to enhance this relation which may resolve principal agent problem. One of the
best measure is monetory terms eg pay which can be related to job,peron and
performance.Performance based pay can be defined as the intrinsic and extrinsic
rewards given to agent based on his performance(efficiency,ability,skills,cooperation
etc)An agent is likely to perform upto the expectations of the organistion,defending
his/her company objectives,performing keeping himself updated to firm inciatives and
objectives.Based on these performances a firm may reward agent with plunty of
rewrads like pay,bonus.incentives,vouchers etc.This will further help in deriving
principal agent motivation,conscientiousness,cooperation and overall organization
productivity.
b) Equity theory was prescribed by the theorist Adams that defimes managerial behaviour
towards organisations.According to this theory worker of a firms are likely to compare
their achievenments and costs.This theory further debates on elements of fairness and
unfairness that can lead to motivation,demotivation,stress or overall organization
productivity.Workers psychologically compare the rewrads in a manner:
My rewars-my cost = your reward -your costs/my efforts. Your efforts.
When selection and recxruitment takes place it is very important to make sure that
fairness has taken place.As discuseed above when an agent is providing best of his
efforts and performance to a company in exchange for better pay system,he is also
demanding fairness from his organization.Their are different factors to make sure that
employeer is showning fairness which includes employee attitude,behaviour,job
performance,productivity etc. When theirs is fairness in employer-employye relation its
leads to more rational relation which further derives employee to perform better
tasks.Employee feel self respected,and safe and secure in their work.This leads to
elements of transational relation whereby for better services orivided by the employee
he expects better rewards.This can bring a emotional relation between them and
employee is likely to show his obligations towards the firm.

Q6
a) Vrooms expectancy theory is based on three elements of
EXPECTANCY,INSTRUMENTALITY and Valence which can be defined as , employee of
a firm when expects that he can perform the work (expectancy) and determines the
 results and rewrds that he will receive for the work
performed(instrumentality),lastly how he behave towards his achievement
(valence) is known as expectancy theory.When a worker under a contract provides
his services to firm he expects rewrads in exchange for his efforts
(pay,bonus,incentives etc) There are many qualities oif a worker and whn best of
these are provides he expexts best of exchange in shape of personal growth like
promotion ,respected,monetory measures etc.Similary when he receives these
rewards inform in intrinsic and extrinsic elements their might be a reaction.Many a
times workers are not satisfied with exchange received for their efforts and show
behaviour that might alter their performance.This leads to demotivatyion and steps
like altering working timings,resignation,seeking company resources for personal
means etc takes place.It is suggested to provide satisfactory results to employee to
maintain equilibrium in an organization.
b) As mentioned above design of reward system must be designed professionaly to
retain and satisfy employee relation.Employees of any organisations are likely to
show reactions towards what they are rewarded with in exchange for their
contribution towards the organization.Changes in behaviour,attitudes,work
productivity etc are common consequences.It is responsibility of firm to provide
with variation exchange that are necessary and may include basic physiological
needs as prescribed by Masllow like food,water salary,air etc.Reward system is also
based on social factors like how well a employee is treated,receiving obligations and
morals,training and development to fullfill missing skill gaps,keeping them up to
dated with companys system.However there are also some contectual factors that
includes culture and norms of a culture and which might be oriented to the
emplyees.

Q8
a)Performance in a firm can be based on different factors like
ablility,skills,cooperation,management of employees.Task performance maybe defined as
performace based on technical cores example how well a employee can resolve
conflict,designing of performance plan,job specification etc.In contrast contextual
performance is less liely based of technical terms and is moreover behaviour based
core.This include medium of behaviour between person and organization example
obligations,norms,culture etc.Both of these cores hold their importance and are way for
organistaion to be more efficienct.Both task and contextual performance are corelated and
leads to raltional behaviour and trabsactional behaviours of organization.Rational and
transational behaviour as described abnove includes different social and economic measure
however leads to motivation o firm.
b) Personality differnces: OCB is not directly based on rewards systems and includes
theories of organ and many other theorists thaty determines voluntary actions of human. In
a organization everyone selected is not same.Their are heterogenous employees filling
vacancy that follows different culture,language,have different background etc. Similarly
every employes comes up with their own perspective towards oragnisation having
interpersonal opininons. Al these differences within a firm many a times leads to comoany
conflict which are sources of personality differences and can damage the image and
performance of company.It is always adivised to company to make sure monitiooring and
policing measures are taking place to manage a smooth system. Along with this training and
development sessions are advised to groom and mature employees for their conflitctual
personalties.
Social exchange constructs: Social exchange constructs maybe behaviour of organistaion
based of social morals. OCB can be organizational directed or individual directed and its is a
moral obliogation for organization to make sure elements to
affiliation,avoidance,compliance,obedience are taking place. Affiliation between working
employees as well as organization can help sooth the system which will help firm avoid any
form of conflict that can take place in form of changes in behaviour, personality differences
etc.
Organisational commitment: Organisational commitment is contract between employeer-
employee which are those actions provides by agents in exchange for rewrds. Commitment
can be of various forms like emotional,social,Normative,moral,attitudinal. Employee may
commit themselves to organization because they are emotionally attached to the system
and are enjoying every aspect.Similar;y agents are commited to organization because of
moral reason as they are likely to show respect towards organisations and don’t want to feel
guilty of leaving it.However many a times agents are likely to leave oraganistaion due to the
reasons of cost taking place.

Q4) Accoring to organ OCB can be defined as , Discritionary,not directed and explicitly
behaviour based on reward system.Where behaviour is voluntary inrole and is a personal
choice. According to organ behaviour is just a voluntary thing whch cant be enforced by any
organization.His theory includes five measures,
-Conscientousness(punctuality)
-Civic virtue(keeping oneself updates to company rules)
-Coutesy(showing positivity towards org)
-Helping others left behind
-cooperation
However his theory has been challenged by graham who sates that if behaviour is voluntary
then what exactly defines being voluntary and according to him behaviour mightbe in role
or out role. Wiiliams and adersons concept introduced the terminology of compliance to
their theory and related it to theory of organ.