Name of the Student: Aashish Harish Kodi

Roll No.: 21BCO055

Subject Code: 17A302 Subject Title: Principles of Management

Q – 1 EXPLAIN THE QUALITIES OF A GOOD LEADER. DO THE QUALITIES ALONE ENSURE

LEADERSHIP SUCCESS?
 Ans) Good leaders hold their position as a consequence of their appeal to their subordinates.
 A good leader is responsive to the group agenda and is secure only as long as he or she remains responsive.

 Some of the other characteristics of a good leader include –

o Initiative: A leader has to be a keen observer of the society, the commercial trends, the product types, the
change dynamics and the consumer trends. Once he/she decides to take the initiative, what matters is the
speed with which he/she is going to function.
o Creativity and Innovation: Competency in creativity and innovation are sometimes basic traits of certain
individuals. He/she might not have any new ideas. He/she may use creative ideas to meet the challenges
of a situation.
o Risk Taking and Risk Management: A leader ventures into new ideas and treads into areas of uncertainty.
There are several elements such as demand supply in the market, resources availability etc. which throw
a potential challenge to the entrepreneur.
o Problem Solving: A good leader should understand that there is more than one way of solving problems,
look for alternative strategies or resources that would help to solve the problem, generate new ideas etc.
o Persistence: There is intense perseverance on the part of the leader. Roadblocks to success should not
deter him/her.
o Persuasion and Influencing Others: One of the important functions of a good leader is to influence the
environment comprising individuals and institutions, for mobilizing resources, obtaining inputs,
organising production and getting work done.

 Though the above qualities are required for being a good leader, having only these qualities don’t ensure
successful leadership.
 Many followers related factors like their skills, knowledge, commitment, willingness to co-operate team spirit
etc make a person an effective leader. It is said that followers make a person, a good leader by acceptance of
leadership. Therefore both followers and leaders are playing an vital role in leadership process.
Q – 2 WHY DOES A MANAGER NEED TO UNDERSTAND EMPLOYEE MOTIVATION AND
MOTIVATIONAL THEORIES?

 Ans) One of the key functions of managers is ‘getting things done’ through employees. Organizations exist to
achieve its corporate objectives and employees working in those organizations aide in achieving those objectives
by working towards their individual goals and targets.
 In an ideal world, if every individual was providing his best performance, then organizational goals would be
met sooner too; however, in the real world it is often not the case.
 Understanding leadership and motivation opens our minds to new thought processes of how people behave and
why.
 It helps understand some general principles of human behaviour and allows us to use these theories as a guide
for our participation, analysis and understanding of group behaviour.
 This understanding can serve us best in selecting individuals who display some of these qualities to fill specific
roles in our organizations and communities.

Q – 3 EXPLAIN THE IMPORTANCE OF EMPLOYEE MOTIVATION IN AN ORGANIZATION.

 Employee motivation is the level of commitment, energy and innovation that a company's staff hold during the
working day.
 Maintaining and improving motivation in the workplace can be a problem for many companies, as not every task
will be interesting. Therefore, businesses must find ways to keep their employees engaged.

 Motivation helps change negative attitude to positive attitude:

o Without motivation the employees try to perform minimum activities in the organisation. But the
motivation fills in the desire to perform to their maximum level.
o The motivated employees make best use of the resources.
 Motivation improves performance level of employees:
o The motivation improves the efficiency level of employees which means the employees start performing
the job to the best of their ability with minimum wastage of time and resources because motivated
employees always go for best utilisation of resources.
 Helps in Achieving the Organisational Goal:
o The motivated employees always try to achieve the organisational goal and contribute their best efforts
for the realisation of organisational goal as they know with the achievement of organisational goal only,
they can achieve their personal goal.
o All the employees contribute their efforts in one direction of accomplishment of goal.
 Motivation creates Supportive Work Environment:
o In motivation the relations between superior and subordinates are always improved.
o When the employees get their need satisfied or get the recognition and respect in the organisation then
they always offer a supportive hand to superiors.
o There is more cooperation and co-ordination in the organisation and all the employees work with the
team spirit.
 Motivation helps the managers to introduce changes:
o The motivated employees show less resistance in accepting the changes according to changes in the
business environment because they know if the changes are not implemented in the organisation, not
only the organisation will lose by this but the employees also will find it difficult to get their needs
fulfilled.
 Reduction in Employees’ Turnover:
o The motivation creates confidence in the employees to get their needs satisfied in the organisation itself.
o They always select the alternative to remain in the organisation and increase their earning rather than
leaving the organisation and increasing their earnings.

Q – 4 DISCUSS THE TYPES OF MOTIVATION.

Intrinsic motivation
 Intrinsic motivation is internal.
 For example, you might use intrinsic motivation when you feel inspired to complete a task because it aligns
with your personal core values.
 If you volunteer for a community food bank because you derive motivation from helping others, you are
likely well-motivated by intrinsic factors.
Extrinsic motivation
 When you are motivated to act by external factors, such as compensation or praise, you are experiencing
extrinsic motivation.
 Extrinsic motivation drives you to achieve things for rewards such as a promotion, raise, bonus, awards, and
the need to maintain your livelihood, among others.

Types of motivation
 Incentive motivation
o Incentive motivation is when you are motivated to perform a task because of the potential reward.
o People who are incentive-motivated typically do not focus on the process of achieving a goal so long as
they get the reward.
 o Example: You strive to get a promotion because of the higher authority and larger pay check that come
with the new role, rather than the increased responsibility and job satisfaction attached to the position.
 Achievement motivation
o This motivation entails performing tasks to achieve specific objectives.
o With achievement motivation, you likely care more about committing yourself to a vision and
accomplishing an objective than attaining awards.
o Example: You could be a scientist whose organization works to create a vaccine that could cure a deadly
virus. For you, the fulfilment is in creating a life-saving product rather than the potential commercial
value of the discovery.
 Power motivation
o If you strive to control your life and that of others, your motivation is likely power.
o You enjoy actions that will make you the sole determinant of what happens to your money, food, health,
relationships and more.
o Example: You would like to advance to a more senior, managerial position in your company so you can
be in charge of a team. To make yourself more eligible for a promotion, you complete a management
training course and apply for an open position in your company.
 Fear motivation
o The fear of negative consequences can drive you to avoid an unpleasant experience such as termination
of employment, demotion, lawsuits, stagnation in a role and more.
o While fear motivation is not necessarily healthy or sustainable, it can be a somewhat effective motivator
in the short-term.
o Example: The potential loss of livelihood from missing sales quotas can urge you to learn new methods
of winning clients and polish your cold calling skills.
 Affiliation motivation
o Also known as "social motivation," this motivation encourages social interaction among people.
o A person who is driven by affiliation gets motivated by the spirit of cooperation and by others accepting
their desirable attitudes.
o This need can motive you to be an active member of social groups.
o Example: If you are a professional, you can derive motivation from the recognition colleagues and
superiors give you for your contributions to the success of the organization.

 Competence motivation
o Competence motivation pushes people to become highly proficient at what they do, allowing them to
become subject matter specialists in critical aspects of their jobs.
 o Example: A heart surgeon decides to undergo specialized training to perform an advanced operating
procedure.
 Attitude motivation
o This is the motivation that drives an individual to change other people’s perceptions or thoughts.
o Attitude motivated people seek to enhance their interactions with other people by improving social
engagements.
o It focuses on making people around you feel better about you and themselves.
o Example: You volunteer to lead a campaign in the office that aims to change employee perception
towards a proposed change that may affect roles and job content.

Q – 5 DISCUSS THE DIFFERENT THEORIES OF MOTIVATION.

MASLOW’S HIERARCHY OF NEEDS
 Abraham Maslow developed a theory that humans have five sets of needs that are arranged in a hierarchy.
 He contends that people start by trying to satisfy their most basic or compelling needs and progress toward the
most fulfilling.
 Physiological needs:
o These include the need for food, water, shelter, clothing and money. Until an individual has access to
these necessities, there can be no further progress.
o These needs are very basic, and for the most part, society and our social network have ensured that they
are present.
 Safety needs:
o These include security, stability, and a structured environment.
o Here, the individual expects and pursues job security, a comfortable work environment, pension and
insurance plans, and freedom to organize in order to ensure continuation of these benefits.
o Individual’s main objective is to ensure that benefits are protected or employment needs are being met
rather than contributing to long-term organizational goals.
 Relationship needs:
o Relationship needs include socialization, affection, love companionship, and friendship.
o The individual at this level participates for personal or intrinsic rewards.
o Since no person can live for extended periods without interaction with other people, the individual may
be drawn to participate simply to fulfil this need.
 Esteem needs:
o These include feelings of adequacy, competence, independence, confidence, appreciation, and
recognition by others.
 o The external environment is needed more to provide recognition than to provide material rewards.
o At this point, the intrinsic value is more important than that which can be provided by outside influences.
The ego seems to take over here and the need is to ensure that it is satisfied.
 Self-actualization:
o Different people have different ideas about what they need to achieve in order to obtain true happiness.
o People who pursue self-actualization are more accepting of reality, themselves, and others.
o Organizational requirements may include the opportunity for creativity and growth.
o Frequently, individuals aspiring to this level often operate outside existing organizations and instead
build their own structures to suit their individual needs.

Alderfer’s ERG Theory

 Clayton Alderfer developed another needs-based theory that supports in many ways, the theory developed by
Maslow, but consists of three rather than five basic needs.
 Existence needs:
o These include needs that are satisfied by material substances or conditions.
o They correspond closely to the physiological needs identified by Maslow and those safety needs that can
be satisfied by material rather than interpersonal rewards or conditions.
o They include the need for food, shelter, pay, and safe working conditions.
 Relatedness needs:
o These are needs that may be satisfied by communication, or exchange and interaction with other
individuals.
o There is a dependance on feedback from other organizational or community members to fulfill these
needs. Thus, the motivation is provided by a combination of intrinsic and extrinsic rewards.
o These rewards include accurate and honest feedback, which may involve direction and advice rather than
unconditional pleasantness or agreement.
 Growth needs:
o These are needs that are fulfilled by strong personal involvement that fully utilizes our skills, abilities,
and creativity.
o They include Maslow’s self- actualization as well as esteem needs that rely on intrinsic rewards.

McClelland’s Theory of Needs

 Psychologist David McClelland contends that we develop a relatively stable personality early inl ife that, once
acquired, remains unchanged.
 He does not address the issue of growth, but has been more concerned with the behavioural consequences of
need.
 Need for achievement:
o Individuals in this category have a strong desire to perform challenging tasks well.
o They have a preference for situations where personal responsibility can be taken for successful outcomes.
o The goals they set provide for moderate and calculated risk, and the individual seeks performance
feedback to allow for modification and to ensure success.
 Need for affiliation:
o People in this category display a need to establish and maintain friendly, compatible relationships.
o They have a need to like other people and want others to like them.
o They have an ability to create social networks that will result in meeting these needs.
 Need for power:
o People in this category have a strong need to have influence over others.
o They wish to make a significant impact and impression on those with whom they come in contact.
o This need for power corresponds in many ways to Maslow’s esteem needs where power is used to get
attention or to build personal prestige.

HERSHBERGER’S TWO-FACTOR THEORY OF NEEDS

 Hygiene factors- Hygiene factors are those job factors which are essential for existence of motivation at
workplace. These do not lead to positive satisfaction for long-term.
 But if these factors are absent / if these factors are non-existent at workplace, then they lead to dissatisfaction.
These factors are extrinsic to work. Hygiene factors are also called as dissatisfiers or maintenance factors as they
are required to avoid dissatisfaction.
o Pay - The pay or salary structure should be appropriate and reasonable. It must be equal and competitive
to those in the same industry in the same domain.
o Company Policies and administrative policies - The company policies should not be too rigid. They
should be fair and clear. It should include flexible working hours, dress code, breaks, vacation, etc.
o Fringe benefits - The employees should be offered health care plans (Mediclaim), benefits for the family
members, employee help programmes, etc.
o Physical Working conditions - The working conditions should be safe, clean and hygienic. The work
equipment’s should be updated and well-maintained.
o Status - The employees’ status within the organization should be familiar and retained.
o Interpersonal relations - The relationship of the employees with his peers, superiors and subordinates
should be appropriate and acceptable. There should be no conflict or humiliation element present.
o Job Security - The organization must provide job security to the employees.
 Motivational factors- According to Herzberg, the hygiene factors cannot be regarded as motivators. The
motivational factors yield positive satisfaction.
 These factors are inherent to work. These factors motivate the employees for a superior performance. These
factors are called satisfiers.
o Recognition - The employees should be praised and recognized for their accomplishments by the
managers.
o Sense of achievement - The employees must have a sense of achievement. This depends on the job. There
must be a fruit of some sort in the job.
o Growth and promotional opportunities - There must be growth and advancement opportunities in an
organization to motivate the employees to perform well.
o Responsibility - The employees must hold themselves responsible for the work. The managers should
give them ownership of the work. They should minimize control but retain accountability.
 o Meaningfulness of the work - The work itself should be meaningful, interesting and challenging for the
employee to perform and to get motivated.

EQUITY THEORY
 Equity theory attempts to explain relational satisfaction in terms of perceived fairness: that is, people evaluate
the extent to which there is a fair or unfair distribution of resources within their interpersonal relationships.
Equity theory was first developed in 1963 by John Stacey Adams.
 Equity theory proposes that people value fair treatment, which motivates them to maintain a similar standard of
fairness with their co-workers and the organization.
 Accordingly, equity structure in the workplace is based on the ratio of inputs to outcomes.
 Inputs include time spent working and level of effort but can also include fewer tangible contributions such as
loyalty, commitment, and enthusiasm.

EXPECTANCY THEORY

 Expectancy theory suggests that behaviour is motivated by anticipated results or consequences. For example,
people will be willing to work harder if they think the extra effort will be rewarded.
 In essence, individuals make choices based on estimates of how well the expected results of a given behaviour
are going to match up with or eventually lead to the desired results.
 This process begins in childhood and continues throughout a person’s life. Expectancy theory has three
components: expectancy, instrumentality, and valence.
 Expectancy describes the person’s belief that “I can do this.” Usually, this belief is based on an individual’s past
experience, self-confidence, and the perceived difficulty of the performance standard or goal.
 Factors associated with the individual’s expectancy perception are competence, goal difficulty, and control.
 Instrumentality reflects the person’s belief that, “If I accomplish this, I will get that.” The desired outcome may
come in the form of a pay increase, promotion, recognition, or sense of accomplishment.
 Having clear policies in place—preferably spelled out in a contract—guarantees that the reward will be delivered
if the agreed-upon performance is met. Instrumentality is low when the outcome is vague or uncertain, or if the
outcome is the same for all possible levels of performance.
 Valence captures the fact that “I find this particular outcome desirable because I’m me.”
 Factors associated with the individual’s valence are needs, goals, preferences, values, sources of motivation, and
the strength of an individual’s preference for a particular outcome.

Q – 6 DESCRIBE THE JOB CHARACTERISTICS THAT AFFECT MOTIVATION.

 JOB ROTATION
o Job rotation involves periodically shifting an employee from one task or job to another in an effort to
decrease boredom.
o By cross-training employees, companies have also found reductions in repetitive motion injuries and
turnover.
o Lincoln Electric, a manufacturer of welding and cutting parts company, regularly cross-trains all its
employees, including salaried management, to weld and operate production machines. This cross-
training effort has helped minimize layoffs during downturns and increased job satisfaction.
o McDonald’s, the fast-food restaurant, uses job rotation. According to a manager in McDonald’s Hong
Kong locations, the young staff wants flexible working hours and is easily bored. But McDonald’s job
rotation policy makes workers feel like they can learn something new every day.

 JOB ENRICHMENT
o Job enrichment refers to the vertical expansion of jobs.
o It increases the degree to which an employee also controls the planning and evaluation of the work that
she executes.
o An enriched job increases the employee’s independence and responsibility.
o It also provides feedback, making it possible for employees to evaluate and improve their own
performance.

Q – 7 WRITE A SHORT NOTE ON GOAL-SETTING THEORY

 This theory states that goal setting is essentially linked to task performance.
 It states that specific and challenging goals along with appropriate feedback contribute to higher and better task
performance.
 In simple words, goals indicate and give direction to an employee about what needs to be done and how much
efforts are required to be put in.
The important features of goal-setting theory are as follows:
 The willingness to work towards attainment of goal is main source of job motivation. Clear, particular and
difficult goals are greater motivating factors than easy, general and vague goals.
 Specific and clear goals lead to greater output and better performance.
 Goals should be realistic and challenging. This gives an individual a feeling of pride and triumph when he attains
them, and sets him up for attainment of next goal.
 Better and appropriate feedback of results directs the employee behaviour and contributes to higher performance
than absence of feedback. It helps employees to work with more involvement and leads to greater job satisfaction.
 Employees’ participation in goal is not always desirable.
 Participation of setting goal, however, makes goal more acceptable and leads to more involvement.

ADVANTAGES OF GOAL SETTING THEORY

 Goal setting theory is a technique used to raise incentives for employees to complete work quickly and
effectively.
 Goal setting leads to better performance by increasing motivation and efforts, but also through increasing and
improving the feedback quality.
DISADVANTAGES OF GOAL SETTING THEORY
 At times, the organizational goals are in conflict with the managerial goals. Goal conflict has a detrimental effect
on the performance if it motivates incompatible action drift.
 Very difficult and complex goals stimulate riskier behaviour.
 If the employee lacks skills and competencies to perform actions essential for goal, then the goal-setting can fail
and lead to undermining of performance.
 There is no evidence to prove that goal-setting improves job satisfaction.

Q – 8 WRITE A SHORT NOTE ON REINFORCEMENT THEORY

 It states that individual’s behaviour is a function of its consequences.
 It is based on “law of effect”, i.e., individual’s behaviour with positive consequences tends to be repeated, but
individual’s behaviour with negative consequences tends not to be repeated.
 Reinforcement theory of motivation overlooks the internal state of individual, i.e., the inner feelings and drives
of individuals are ignored.
 This theory focuses totally on what happens to an individual when he takes some action.
 The external environment of the organization must be designed effectively and positively so as to motivate the
employee.
 The managers use the following methods for controlling the behaviour of the employees:
  Positive Reinforcement- This implies giving a positive response when an individual shows
positive and required behaviour. For example - Immediately praising an employee for coming
early for job. This will increase probability of outstanding behaviour occurring again.
 Negative Reinforcement- This implies rewarding an employee by removing negative /
undesirable consequences. Both positive and negative reinforcement can be used for increasing
desirable / required behaviour.
 Punishment- It implies removing positive consequences so as to lower the probability of
repeating undesirable behaviour in future. In other words, punishment means applying
undesirable consequence for showing undesirable behaviour. For instance - Suspending an
employee for breaking the organizational rules. Punishment can be equalized by positive
reinforcement from alternative source.
 Extinction- It implies absence of reinforcements. In other words, extinction implies lowering the
probability of undesired behaviour by removing reward for that kind of behaviour. For instance
- if an employee no longer receives praise and admiration for his good work, he may feel that his
behaviour is generating no fruitful consequence. Extinction may unintentionally lower desirable
behaviour.

Q – 9 WHAT ARE THE CHARECTERISTICS OF MOTIVATION?

  Motivation is a Psychological Concept:
o Motivation has to come from within each individual.
o There are two desiring factors in motivation- Fundamental needs, such as food, clothes
and shelter and Ego-satisfaction including self-esteem, recognition from others,
opportunities for achievements, self-development and self-actualization which act as
powerful though unconscious, motivator of behaviour.
 Motivation is never an Unending Process:
o Man is a social animal. As a social animal he has innumerable wants which induce him
to work.
o If one basic need is adequately satisfied for a given individual it loses power as a
motivator and does into determine his current behaviour but at the same time others needs
continue to emerge.
o Wants are innumerable and cannot be satisfied at one time.
o It is an unending process so the process of motivation is also unending to induce the
person to satisfy his innumerable wants. The importance of motivation is to keep it alive
and not to let it dwindle.
 Non-fulfilment of Basic Needs Makes a Man Sick:
o If anybody fails in trying to meet a need which he feels is essential for him, he becomes
to some extent mentally ill and such frustrated man cannot be motivated any further until
his essential need is satisfied.
 Goals are Motivators:
o Goals and motives are inseparable. Man works to achieve the goals. A soon as the goal
is achieved, he would be no longer interested in work. Therefore, it is very essential for
the management to know his goal to push him to work.
 The Self-concept as a Unifying Force:
o Unifying force means the drive to activate his/her image of him-herself.
o The outline of a person’s self-image is fairly well checked in early childhood and
thereafter does not act ordinarily change.
o Thus, two things that individual is always trying to do are (a) to act like the person; he
thinks he is, and (b) to get what he thinks, he can.
 Motivation is a complex phenomenon:
o Motivation being an internal feeling cannot be observed directly. Since motives
themselves are dynamic, it further adds to complexity.
 Motivation is different from Satisfaction, Inspiration, and Manipulation:
o Motivation refers to the drive and efforts to satisfy a want or goal, whereas satisfaction
refers to the contentment experienced when a want is satisfied. In contrast, inspiration is
bringing about a change in the thinking pattern. On the other hand, Manipulation is
getting the things done from others in a predetermined manner.

Q – 10 DISCUSS THE REINFORCEMENT THEORY & TEAM BUILDING

 It states that individual’s behaviour is a function of its consequences. It is based on “law of effect”, i.e,
individual’s behaviour with positive consequences tends to be repeated, but individual’s behaviour with negative
consequences tends not to be repeated.
 Reinforcement theory of motivation overlooks the internal state of individual, i.e., the inner feelings and drives
of individuals are ignored.
 This theory focuses totally on what happens to an individual when he takes some action.
 This theory is a strong tool for analysing controlling mechanism for individual’s behaviour. However, it does
not focus on the causes of individual’s behaviour.
 The managers use the following methods for controlling the behaviour of the employees:
 Positive Reinforcement- This implies giving a positive response when an individual shows positive and required
behaviour. For example - Immediately praising an employee for coming early for job. This will increase
probability of outstanding behaviour occurring again.

 Negative Reinforcement- This implies rewarding an employee by removing negative / undesirable

consequences. Both positive and negative reinforcement can be used for increasing desirable / required
behaviour.

 Punishment- It implies removing positive consequences so as to lower the probability of repeating undesirable
behaviour in future. In other words, punishment means applying undesirable consequence for showing
undesirable behaviour. For instance - Suspending an employee for breaking the organizational rules. Punishment
can be equalized by positive reinforcement from alternative source.

 Extinction- It implies absence of reinforcements. In other words, extinction implies lowering the probability of
undesired behaviour by removing reward for that kind of behaviour. For instance - if an employee no longer
receives praise and admiration for his good work, he may feel that his behaviour is generating no fruitful
consequence. Extinction may unintentionally lower desirable behaviour.

 Team building is a management technique used for improving the efficiency and performance of the workgroups
through various activities.
 It involves a lot of skills, analysis and observation for forming a strong and capable team.
Team Building Process
1. Identify the Need for Team Building
2. Define Objectives and Required Set of Skills
3. Consider Team Roles
4. Determine a Team Building Strategy
5. Develop a Team of Individuals
6. Establish and Communicate the Rules
7. Identify Individual’s Strengths
8. Be a Part of the Team
9. Monitor Performance
10. Schedule Meetings
11. Dissolve the Team
Advantages

 Identify Strengths and Weaknesses: Through team-building exercises, the strengths and weaknesses of each
member can be identified. In day-to-day routine work, such an analysis cannot be done. These competencies can
be used by the managers to form effective teams.

 Direct Towards Vision and Mission: Team building activities define the role and importance of the team for the
organization to reach its vision. It makes the individuals understand the organization’s goals, objectives, mission
and vision very clearly and motivates them to contribute towards it.

 Develops Communication and Collaboration: Team building activities enhance the interpersonal relations of the
team members. It makes individuals comfortable and familiar with one another. Collaboration develops trust and
understanding among the team members.

 Establishes Roles and Responsibilities: It defines and clarifies the role of each member of a team. Moreover, the
members are given individual responsibilities, along with the motivation of performing as a team.

 Initiates Creative Thinking and Problem Solving: In a team, individuals are motivated to give their views,
opinions and solution to a particular problem. It leads to brainstorming and exploring their creative side.

 Builds Trust and Morale: By conducting team building activities, the organization makes the employees feel
valued. It encourages them to develop their skills and build strong interpersonal relations, ultimately boosting
the morale and trust of the team members.

 Introduces and Manages Change: The technique of team building makes it easier for the managers to incorporate
an organizational change by making the individuals familiar with the change and its necessity. It also helps in
managing such change and its impact over the working and team’s performance.

 Facilitates Delegation: The managers find it more suitable to delegate the work to a team rather than an
individual. Therefore, team building helps the managers to efficiently and adequately delegate the task to the
team.

 Better Productivity: If the team is wisely formed and all the team members work collaboratively to achieve the
objectives, the productivity of all the individuals improve. Thus, increasing the productivity of the team and the
organization.

Disadvantages
 Develops Conflict: Sometimes, the team lacks coordination and understanding among its members. This leads
to conflict and clashes within the team and hence decreases the efficiency and productivity. A lot of time is
wasted in such conflict management.
 Unproductive or Freeride Team Members: At times, some of the team members do not contribute much to team
performance. Such individuals are considered to be freeriding team members. They prove to be inefficient and
less productive for the team.
 May Lead to Non-Cooperation: Every individual is different from one another. The team members sometimes
lack cooperation and unity. This non-cooperation among the team members leads to wastage of efforts and
hinders the performance of the team as a whole.

 Difficult to Evaluate Individual Performance: Whatever the result or the outcome the organization gets by team
building is the team’s achievement or failure. Usually, the organization overlooks the contribution of each
member individually while rewarding the efforts of the whole team.

 Involves Cost: Team building activities require time and money. Moreover, a lot of time, cost and resources are
consumed in ensuring coordination, balance, feedback, decision making and conflict management within the
teams formed.

 Accountability and Credibility Issues: In case of failure, it becomes difficult to find out the reason. The team
members sometimes do take up the accountability of their work, holding the other members to be responsible
for the unfavourable outcome.

Q – 11 DISCUSS THE CONCEPT OF GROUP, THEORIES OF GROUP FORMATION – FORMAL &

INFORMAL GROUPS, IMPORTANCE OF TEAM BUILDING.
 A Group is basically an assemblage of people. It can be understood as a collection of individuals (two or more),
who come together and interact with each other, so as to achieve the objectives of the organization.
Characteristics of group
 Size: To form a group, it must be having at least two members. Practically, the number of group members ranges
from 15 to 20. The more the members in the group, the more complex it is to manage.
 Goals: Every group has certain goals, that are the reasons for its existence.
 Norms: A group has certain rules, for interacting with the group members.
 Structure: It has a structure, based on the roles and positions held by the members.
 Roles: Every member of a group has certain roles and responsibilities, which are assigned, by the group leader.
 Interaction: The interaction between the group members can occur in several ways, i.e., face to face, telephonic,
in writing or in any other manner.
 Collective Identity: A group is an aggregation of individuals, which are separately called as members, and
collectively called as a group
Propinquity theory:
 The most basic theory explaining affiliation is propinquity.
 This interesting word simply means that individuals affiliate with one another because of spatial or geographical
proximity.
 In an organisation employee who work in the same area of the plant or office or managers with offices close to
one another would more probably form into groups than would those who are not physically located together.
 The drawback of this theory is that it is not analytical and does not begin to explain some of the complexities of
group formation
Homan’s theory:
 The more activities persons share, the more numerous will be their interactions and the stronger will be their
shared activities and sentiments, and the more sentiments people have for one another, the more will be their
shared activities and interactions.”
 It is a very comprehensive theory and based on activities, interactions and Homan’s theory is based on
sentiments.
 These three elements are directly related to each other. The members’ activities interactions and of a group share
activity and interact with one another not just because of physical proximity but also to accomplish group goals.
Balance theory:

 This theory as proposed by Theodore Newcomb states that Persons are attracted to one another on the basis of
similar attitudes towards commonly relevant objects and goals.
 Once a relationship is formed, it strives to maintain a symmetrical balance between the attraction and the
common attitudes.
 If an imbalance occurs, attempts are made to restore the balance. If the balance cannot be restored, the
relationship dissolves.
Exchange theory:
 This theory is based on reward-cost outcomes of interactions.
 To be attracted towards a group, a person thinks in terms of what he will get in exchange of interaction with
group members.
 A minimum positive level (rewards greater than costs) of an outcome must exist in order for attraction or
affiliation to take place.
 Rewards from interactions gratify needs while costs incur anxiety, frustrations, embarrassment or fatigue.
Types of groups

 Formal groups: Groups that are formed consciously by the management, with an aim of serving an
organizational objective. These are further classified as:
 Self-directed teams: The group of employees which are so authorised to make decisions, on their own, as it
is independent and self-governing in nature.
 Quality circles: A number of employees classed together belonging to the same field, who meet every week
for an hour, to talk about their problems, identify the causes and find out solutions, to take necessary steps
in this regard.
 Committee: An association of people created by the management for different matters to identify and discuss
the issues of the company and arrive at a conclusion. Standing Committee
 Task force: It is a temporary committee, wherein people belonging to different fields are grouped together
for the performance of the task.

Informal groups: The social and psychological variables operating at the workplace, results in the formation of
informal groups. The creation of these groups is spontaneous due to the common interest, social needs, physical
proximity and mutual attraction.

Importance of team building

 Networking, socializing, and getting to know each other better
 Teamwork and boosting team performance
 Competition and bragging rights
 Celebration, team spirit, fun, and motivation
 Collaboration and the fostering of innovation and creativity
 Communication and working better together
 Enhance company culture
 Create something to look forward to
 Show employees’ appreciation
 Build bridges across departments
 Unlock leadership potential
 Improve employee engagement and morale