2016 – Solved Question Paper | Organisational Behaviour and Theory | Previous Year – Masters of Commerce (M.Com) | Dibrugarh University

2016 – Solved Question Paper | Organisational Behaviour and Theory | Previous Year – Masters of Commerce (M.Com) | Dibrugarh University

2016

COMMERCE

Course: 102

(Organizational Behaviour and Theory)

Full Marks: 80

Time: 3 hours

The figures in the margin indicate full marks for the questions.

1(a) What are the features of organisations as a system? Why should organisations be studied from the perspective of systems approach?

-> Features of Organisation system are:

1. Simplicity:

An organisation structure should be basically simple. It implies that the structure should have the simplest possible framework which will fulfil the purposes intended with due emphasis on economical and effective means of accomplishing the objective of the enterprise.

This will ensure economy of effort, minimise overhead costs, and reduce all possi­ble difficulties that may arise out of poor communication due to the complexity of intricate structure.

Every person in the organisation should be clear about with whom he has to consult in a particular matter. Too many levels, communication channels, and committees often cause more problems than solving them. Ideally speaking, their numbers and places in the organisa­tion should be based on organisational needs.

2. Flexibility and Continuity:

The organizer should build the structure not for today or tomorrow, but for the distant future. As such, continuity must be maintained in the organisa­tion structure over the period of time. However, since organisation structure is based on cir­cumstances and these are not fixed but change over the period of time, there is a need for incorporating the changes in the organisation structure also.

Hence, the structure should be adaptable enough so that it provides the opportunity to accommodate the changes where these are needed.

3. Clear Line of Authority:

Whatever the form of structure be adopted, there should be clear lines of authority running from top to bottom or in horizontal directions. It implies that one should be very clear about what he is expected to achieve or contribute and what relationships should be maintained by him at his official level.

The failure to clarify the lines of authority results into frictions and inefficiencies. Often, in bureaucratic structure followed by the government organisations, the problem of jurisdiction of a department or division arises and the work suffers.

4. Application of Ultimate Authority:

It suggests that, although a superior manager assigns some of the work to his subordinates, he is ultimately responsible for the accomplish­ment of the total work. Thus, he is responsible for his own work as well as for the work performed by his subordinates.

If this concept is applied, it ensures that every person carries dual responsibility; responsibility for his own work and that for his subordinates’ work. As a whole, a manager is responsible for the total work assigned to him by his superior.

5. Proper Delegation of Authority:

The concept of ultimate authority will be effective only when there is proper delegation of authority at various levels of the organisation. Delega­tion of authority refers to authorisation of a manager to make certain decisions. A common problem in the organisational life is that the managers often fail to delegate adequate authority and suffer from various problems.

Such problems may be in the form of decision bottlenecks, delay in implementation of decision, more pressure on the higher level managers for making decisions, etc. All these factors affect organisational efficiency adversely. These problems can be solved by appropriate delegation of authority.

6. Unity of Command and Direction:

The principles of unity of command and direc­tion should be followed. Unity of command suggests that one person should receive orders and instructions from one superior only. Unity of direction refers to the concept of ‘one plan one man’.

Every work in an organisation having the same objective must be assigned to a single person. Thus, the activities and functions of same type can be grouped together. This provides clarity in carrying out the activities.

7. Minimum Possible Managerial Levels:

As far as possible, there should be mini­mum managerial levels, Greater the number of managerial levels, longer is the line of com­munication in the chain of command—creating problems of delay and distortion. Moreover, more managerial levels increase cost in the organisation.

Though it may not be possible to suggest how many managerial levels should be there in an organisation, the principle of mini­mum levels can be followed.

8. Proper Emphasis on Staff:

Line functions should be separated from staff functions and adequate emphasis should be placed on important staff activities. This is important par­ticularly in large organisations. A line activity is that which serves the organisational objec­tives directly; for example, production activities in a manufacturing concern.

On the other hand, contribution of staff activities is indirect, that is, they help in carrying out the line activities so as to realise the organisational goals. Staff activities may be personnel, account­ing etc. Both of these activities should be clearly spelled out to run the organisation smoothly.

9 . Provision for Top Management:

In the company form of organisation, the share­holders are generally indifferent to the day-to-day affairs of the company. Similarly, the mem­bers of the board of directors also do not meet on regular basis.

Therefore, a link should be provided between the regular management team and members of the board and shareholders. The organisation structure should clearly specify how these top management groups will par­ticipate in management of the company and exercise control over its functioning.

The study of organization as fascinated researchers over centuries, various approaches have been adopted to analyze organizations. The term “system approach” has been defined as a complex whole, a set of combined things or parts. According to this system approach in organizational analysis, an organization can be considered a social system to be studied in its totality In other words; a system is a collection of interrelated parts which receive inputs, act upon them in an organizational or planned manner and thereby produces certain outputs. A system is characterized by three properties. First, it is a set of interactions. Second these interrelated activities or elements have a bouncily set around them. The most important activity of a system is to maintain administrative order and equilibrium among various subsystems.

Thus it is an assembly of interdependent parts who interact among themselves. Interdependent implies that a change in one part influences other parts, or affects the entire system. Individuals are viewed as the basic unit of organizational systems. All human organizations are the open system. It receives input in the form of human and material resources and giving out outputs in the form of products, services or rewards to its members as well as to the larger system.

Herbert Simon was the chief contributor of system approach to the study of organization. According to him organization as a total system, a composite of all the subsystems which serve to produce the desired output. His basic assumption is that the elements of organizational structure and function emanate from the characteristics of human problem-solving processes and rational choice. Therefore the organization is viewed as a system comprising individuals making choices and behaving on the basis of their reactions to their needs and environment.

The systems approach is particularly relevant to the study of large public organization operating in, larger social, political and economic environments. C. West Churchman draws attention to five basic considerations in relation to the systems approach to management:

1. The systems environment acting as a constraint.

2. The systems resources that are put to use in performance.

3. The total objectives of the system and the measures of systems performance.

4. The systems components and its goals and activities.

5. The management of the system (the regulating and decision-making aspect).

The organization, according to many administrative thinkers as a socio-technical system comprising both the social and technical variables. It is not an assembly of building, money, machines and processes but an assembly of various individuals. The system consists in the organization of people around various technologies, whose motivation, behaviour and relationships determine both the quality and quantity of its inputs and outputs.

Now-a-days the system approach is more widely used in the organizational analysis because this approach can take into account more variables and inter-relationships while looking at an organizational problem in the framework of a larger system. Another important assumption of the systems approach is that there is a continuous mutual interaction between the system and its environment. The system approach also provides a useful framework for understanding how the elements of an organization interact among themselves with their environment.

(b) Discuss about the Classical Organisation Theory and Neo-classical Approach in organisational behaviour.

-> Classical Organisation Theory:

The Classical Theory is the traditional theory, wherein more emphasis is on the organization rather than the employees working therein. According to the classical theory, the organization is considered as a machine and the human beings as different components/parts of that machine.

The classical theory has the following characteristics:

  • 1. It is built on an accounting model.

· 2. It lays emphasis on detecting errors and correcting them once they have been committed.

· 3. It is more concerned with the amount of output than the human beings.

· 4. The human beings are considered to be relatively homogeneous and unmodifiable. Thus, labour is not divided on the basis of different kinds of jobs to be performed in an organization.

· 5. It is assumed that employees are relatively stable in terms of the change, in an organization.

· 6. It is assumed that the authority and control should be vested with the central authority only, in order to have a centralized and integrated system.

Assumptions of the Classical Organisation Theory

The classical organisation theory was based on the following assumptions:
1. The relationship between workers and management was established through formal communications, defined tasks and accountability and formalised procedures and practices to minimise conflict between them.
2. Workers are considered to be driven by economic considerations who can be motivated basically by economic rewards. Money is considered the main motivator.
3. The managers were characterised as rational, kind-hearted, intelligent and qualified personnel but they are supposed to deal with the workers firmly in the system.
4. The classical organisation theory assumes that the organisation is a machine and the people its components. In order to make any improvement in the whole system, internal factors were considered and less attention was given to factors in the external environment which may constrain and facilitate the system.
5. It has been assumed by the theory that both workers and managers are rational. Workers can easily perceive that their interests can be served only by increasing the productivity and getting more wages for higher productivity, on the other hand, management gets the fruits of higher productivity. Management tries to find out best ways of doing a job by
introducing new improvements in machines and devoting time to such technical engineering and administrative aspect of organisation which can make the man produce as much as he can with minimum expenses so that workers can contribute more to the organisation and earn more for themselves in return.
6. The classical organisation theory puts special emphasis on the error and particularly on the detection of error and its correction after it happens.
7. The classical organisation theory assumes that man is relatively homogeneous and unmodifiable while designing the jobs and in picking the extra pairs of hands.
8. The classical organisation theory, in its essential character, is centralised. The integration of the system is achieved through the authority and control of the central mechanism.

Two Streams of the Classical Organisation Theory

Classical theorists were divided in opinion. The two streams are scientific management and administrative management. The scientific management stream of the organisation theory emphasised on the efficiency of lower levels of the organisation while administrative stream focused on the efficiency of higher levels. F.W. Taylor is called the father of scientific management approach. Taylor and his followers insisted upon dividing and sub-dividing the tasks through time and motion studies because he was of the view that objective analysis of facts and collection of data in the workplace could provide the basis for determining the best way to organise the work. Thus, they investigated the effective use of human beings in industrial organisations and studied primarily the use of human beings as adjuncts to machines in the performance of routine tasks. The approach taken by
this theory is quite narrow and encompasses primarily psychological variables. As such this theory is also referred to as ‘Machine Theory’ or ‘Physiological Theory.’ The scientific management group was mainly concerned with the tasks at floor or operative levels, and these tasks were quite different from other tasks in the organisation because:
1. These tasks are largely repetitive in nature so that the daily activities of a worker can be sub-divided into a large number of cyclical repetitions of essentially the same or closely related activities.
2. These tasks do not require any problem-solving activity by the workers who handle them. Thus, more attention was given in standardising the working methods. The second stream is the administrative stream of organisation theory emphasises efficiency at higher levels. It was concerned with the managerial organisation and process. Henry Fayol was the leader for this group. He, for the first time, studied the functions and laid down principles of management in a systematic manner for the guidance of managers. The other contributors were Gulick, Oliver Sheldon, Mooney and Reiley, Berwick, Weber and others. The theorists have viewed the central problem as being one where there must be the identification of tasks necessary for achieving the general purpose of the organisation and of the grouping or departmentalizing, to fulfil those functions most effectively.
These two approaches are similar in recognising the fact that organisation is a closed system, however, there are differences between the two.

Key Characteristics of the Classical Organisation Theory:-

Scott and Mitchell have pointed out four key pillars on which the classical organisation theory seems to have been built. They are:
1. Division of Labour : Division of labour refers to the division of tasks of an organisation into sub-tasks and then allow these sub-tasks or sub-parts to individuals. The allotment should be in such a way that each individual would have a small task so that he can specialise himself in that part with a view to improving the efficiency of the organisation while at the same time, the total of individuals’ tasks should add up to the organisation’s goals and objectives. The approach rests upon the simple assumption that the more a particular job is broken down into its component parts, the more specialised a worker can become in carrying out his part of the job and the more specialised he becomes, the more efficient the whole organisation will be. This element is the cornerstone among the four elements mentioned above because other three elements are dependent upon the division of labour.
2. The Scalar and Functional Processes : The scalar and functional processes deal with the vertical and horizontal organisation. The scalar process deals with the vertical elaboration of an organisation. In other words, it is the chain of command or the line of authority, along which authority flows from the top (chief executive) to the bottom (first line supervisor), and obligations and reporting from the bottom to the top. Each one in the organisation is told who their superiors are and who are their subordinates or to whom they are responsible and accountable for performing their job. A delegation of authority flows from this line of command. The functional process deals with the horizontal organisation, i.e., a grouping of various functions into units and clearly defining the relationship between the various heads of the units. The grouping of functions can be done on the basis of purpose, process, clientele, place and time.
3. Structure: It refers to the logical relationship of functions in an organisation arranged in order to accomplish the objectives. These relationships are a line and staff relationships. People, departments, divisions and other segments of the organisation that are authorised to determine the basic objectives of the business and assess their achievements constitute the line. The staff is that part of the organisation which assists and advises the line on matters concerning it, in carrying out its duties. For example, in a manufacturing concern, production is a line function while personnel and finance are the staff functions.
4. The Span of Control: In order to achieve the objectives, the managers are to get the work done from the unlimited number of workers in a large organisation. A manager cannot supervise an unlimited number of people. The span of control refers to the number of subordinates a supervisor can supervise effectively. Wide span yields a flat structure whereas short span results in a tall structure. Grains have developed a mathematical formula to show the numerical limitations of the subordinates, a manager can control. If an organisation is designed on the above principle, it will look like a pyramid. At the top of the structure, there is head of the organisation followed by the top executive, executives, middle managers, junior managers and at the bottom the first line supervisors. Chain of command and line of communication both flow from the top to the bottom in this structure. The line of responsibility, however, flows from bottom to top. There is no provision of upward communication in this system except in relation to the results of task performance.

Neo-classical theory

The neoclassical theory was an attempt at incorporating the behavioural sciences into management thought in order to solve the problems caused by classical theory practices. The premise of this inclusion was based on the idea that the role of management is to use employees to get things done in organizations. Rather than focus on production, structures, or technology, the neoclassical theory was concerned with the employee. Neoclassical theorists concentrated on answering questions related to the best way to motivate, structure, and support employees within the organization.

Studies during this time, including the popular Hawthorne studies , revealed that social factors, such as employee relationships, were an important factor for managers to consider. It was believed that any manager who failed to account for the social needs of his or her employees could expect to deal with resistance and lower performance. Employees needed to find some intrinsic value in their jobs, which they certainly were not getting from the job that was highly standardized. Rather than placing employees into job roles, where they completed one specific task all day with little to no interaction with co-workers, employees could be structured in such a way that they would frequently share tasks, information, and knowledge with one another. The belief was that once employees were placed into this alternate structure, their needs for socialization would be fulfilled, and thus they would be more productive.

Two Movements in the Neoclassical Theory:-

The neoclassical theory encompasses approaches and theories that focus on the human side of an organization. There are two main sources of neoclassical theory: the human relations movement and the behavioural movement. The human relations movement arose from the work of several sociologists and social physiologists who concerned themselves with how people relate and interact within a group. The behavioural movement came from various psychologists who focused on the individual behaviour of employees. To better understand these movements, let’s take a look at how the work of these various sociologists and psychologists influenced management thought.

2(a) How do some peoples in organisation acquire and exercise greater power than others? Explain the nature and significance of power relations in a large manufacturing concern.

-> Organizations are made up of individuals that exercise greater or lesser degrees of power. Sometimes, authority stems from a person’s title in the organization, or from specialized knowledge and expertise. Others may exercise power through interpersonal relationships or the force of their personality. And still others gain influence through an ability to grant access to important resources.

Legitimate or Positional 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 that held by a company’s CEO.

Expert Power Derived from Possessing Knowledge

Knowledge is power. 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.

Referent Power Derived from Interpersonal Relationships

Referent power 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 arises from charisma, as the charismatic person influences others via the admiration, respect and trust others have for her.

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.

Coercive Power Derived from Ability to Influence Others

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 behaviour of employees by ensuring that they adhere to the organization’s policies and norms.

Reward Power and Ability to Influence Allocation of Incentives

Reward power arises from the ability of a person to influence the allocation of incentives in an organization. These incentives include salary increments, positive appraisals and promotions. 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 favouritism, reward power can greatly demoralize employees and diminish their output.

3(a) What do you mean by organisation behaviour? Discuss in brief the nature of organisation behaviour.

-> The study of Organizational Behaviour (OB) is very interesting and challenging too. It is related to individuals, group of people working together in teams. The study becomes more challenging when situational factors interact. The study of organizational behaviour relates to the expected behaviour of an individual in the organization.

No two individuals are likely to behave in the same manner in a particular work situation. It is the predictability of a manager about the expected behaviour of an individual. There are no absolutes in human behaviour. It is the human factor that is contributory to the productivity hence the study of human behaviour is important. Great importance therefore must be attached to the study.

Researchers, management practitioners, psychologists, and social scientists must understand the very credentials of an individual, his background, social framework, educational update, impact of social groups and other situational factors on behaviour.

Managers under whom an individual is working should be able to explain, predict, evaluate and modify human behaviour that will largely depend upon knowledge, skill and experience of the manager in handling large group of people in diverse situations. Pre-emptive actions need to be taken for human behaviour forecasting.

The value system, emotional intelligence, organizational culture, job design and the work environment are important causal agents in determining human behaviour. Cause and effect relationship plays an important role in how an individual is likely to behave in a particular situation and its impact on productivity.

An appropriate organizational culture can modify individual behaviour. Recent trends exist in laying greater stress on organizational development and imbibing a favourable organizational culture in each individual. It also involves fostering a team spirit and motivation so that the organizational objectives are achieved.

There is a need for commitment on the part of the management that should be continuous and incremental in nature.

The scope of the organizational behaviour is as under:

Impact of personality on performance

Employee motivation

Leadership

How to create effective teams and groups

Study of different organizational structures

Individual behaviour, attitude and learning

Perception

Design and development of effective organization

Job design

Impact of culture on organizational behaviour

Management of change

Management of conflict and stress

Organizational development

Organizational culture

Transactional analysis

Group behaviour, power and politics

Job design

Study of emotions

The field of the organizational behaviour does not depend upon deductions based on gut feelings but attempts to gather information regarding an issue in a scientific manner under controlled conditions. It uses information and interprets the findings so that the behaviour of an individual and group can be canalized as desired.

Large number of psychologists, social scientists and academicians has carried out research on various issues related to organization behaviour. Employee performance and job satisfaction are determinants of accomplishment of individual and organizational goals.

Organizations have been set up to fulfil needs of the people. In today’s competitive world, the organizations have to be growth-oriented. This is possible when productivity is ensured with respect to quantity of product to be produced with zero error quality. Employee absenteeism and turnover has a negative impact on productivity.

Employee who absents frequently cannot contribute towards productivity and growth of the organization. In the same manner, employee turnover causes increased cost of production. Job satisfaction is a major factor to analyze performance of an individual towards his work. Satisfied workers are productive workers who contribute towards building an appropriate work culture in an organization.

Organizations are composed of number of individuals working independently or collectively in teams, and number of such teams makes a department and number of such departments makes an organization. It is a formal structure and all departments have to function in a coordinated manner to achieve the organizational objective.

It is therefore important for all employees to possess a positive attitude towards work. They need to function in congenial atmosphere and accomplish assigned goals. It is also important for managers to develop an appropriate work culture. Use of authority, delegation of certain powers to subordinates, division of labour, efficient communication.

Benchmarking, re-engineering, job re-design and empowerment are some of the important factors so that an organization can function as well-oiled machine. This is not only applicable to manufacturing organizations but also to service and social organizations.

The nature of organisation behaviour:

1. A Separate Field of Study and Not a Discipline Only:

By definition, a discipline is an accepted science that is based on a theoretical foundation. But, O.B. has a multi- interdisciplinary orientation and is, thus, not based on a specific theoretical background. Therefore, it is better reasonable to call O.B. a separate field of study rather than a discipline only.

2. An Interdisciplinary Approach:

Organizational behaviour is essentially an interdisci­plinary approach to study human behaviour at work. It tries to integrate the relevant knowledge drawn from re­lated disciplines like psychology, sociology and anthro­pology to make them applicable for studying and analysing organizational behaviour.

3. An Applied Science:

The very nature of O.B. is applied. What O.B. basically does is the application of various researches to solve the organizational problems related to human behaviour. The basic line of difference between pure science and O.B. is that while the former concentrates of fundamental researches, the latter concentrates on applied researches. O.B. involves both applied research and its application in organizational analysis. Hence, O.B. can be called both science as well as art.

4. A Normative Science:

Organizational Behaviour is a normative science also. While the positive science discusses only cause effect relationship, O.B. prescribes how the findings of applied researches can be applied to socially accept organizational goals. Thus, O.B. deals with what is accepted by individuals and society engaged in an organization. Yes, it is not that O.B. is not normative at all. In fact, O.B. is normative as well that is well underscored by the proliferation of management theories.

5. A Humanistic and Optimistic Approach:

Organizational Behaviour applies humanistic approach towards people working in the organization. It, deals with the thinking and feeling of human beings. O.B. is based on the belief that people have an innate desire to be independent, creative and productive. It also realizes that people working in the organization can and will actualise these potentials if they are given proper conditions and environment. Environment affects performance or workers working in an organization.

6 A Total System Approach:

The system approach is one that integrates all the variables, affecting organizational functioning. The systems approach has been developed by the behavioural scientists to analyse human behaviour in view of his/her socio-psychological framework. Man’s socio- psychological framework makes man a complex one and the systems approach tries to study his/her complexity and find solution to it.

(b) Discuss autocratic, custodial, supportive and collegial models of organisation behaviour. What are the situations under which these can be effective?

-> Models are the techniques which help us to understand complex things and ideas in a clear manner. Models are frameworks or possible explanations why do people behave as they do at work. There are so many models as many are organizations. Varying results across the organizations are substantially caused by differences in the models of organizational behaviour. All the models of organizational behaviour are broadly classified into four types: autocratic, custodial, supportive and collegial. We discuss these four models beginning with the autocratic. O.B. is the study of human behaviour in organizations, the interface between human behaviour and the organization and the organization itself. The following figures shows, this interrelationship clearly.

The Autocratic Model

The basis of this model is power with a managerial orientation of authority. The employees in turn are oriented towards obedience and dependence on the boss. The employee need that is met is subsistence. The performance result is minimal.

In case of an autocratic model, the managerial orientation is doctorial. The managers exercise their commands over employees. The managers give orders and the employees have to obey the orders. Thus, the employee’s orientation towards the managers/bosses is obedience. Under autocratic conditions, employees give higher performance either because of their achievement drive or their personal liking to the boss or because of some other factor.

Evidences such as the industrial civilization of the United States and organizational crises do suggest that the autocratic model produced results. However, its principal weakness is its high human cost. The combination of emerging knowledge about the needs of the employees and ever changing societal values and norms suggested managers to adopt alternative and better ways to manage people at work. This gave genesis to the second type of models or organizational behaviour.

The Custodial Model

The basis of this model is economic resources with a managerial orientation of money. The employees in turn are oriented towards security and benefits and dependence on the organization. The employee need that is met is security. The performance result is passive cooperation.

While studying the employees, the managers realized and recognized that although the employees managed under autocratic style do not talk back to their boss they certainly think back about the system. Such employees filled with frustration and aggression vents them on their co-workers, families and neighbours. This made the managers think how to develop better employee satisfaction and security. It was realized that this can be done by dispelling employees’ insecurities, frustration and aggression. This called for introduction of welfare programmers to satisfy security needs of employees. Provision for an onsite day-care centre for quality child care is an example of welfare programme meant for employees. Welfare programmes lead to employee dependence on the organization. Stating more accurately, employees having dependence on organization may not afford to quit even there seem greener pastures around. The welfare programmes for employees started by the Indira Gandhi National Open University (IGNOU), New Delhi are worth citing in this context, IGNOU, in the beginning provided its employees facilities like house-lease facility, subsidized transport facility, day-time child care centre in the campus, etc. These made employees dependent on IGNOU which, in turn, became custodian of its employees.

The basis of this model is partnership with a managerial orientation of teamwork. The employees in turn are oriented towards responsible behaviour and self-discipline.

Although the custodian approach brings security and satisfaction, it suffers from certain flaws also. Employees produce anywhere near their capacities. They are also not motivated to increase their capacities of which they are capable. Though the employees are satisfied, still they do not feel motivated or fulfilled in their work they do. This is in conformity with the research finding that the happy employees are not necessarily most productive employees. Consequently managers and researchers started to address yet another question. “Is there better approach/way to manage people?” The quest for a better way provided a foundation for evolvement to the supportive type of model of organizational behaviour.

The Supportive Model

The basis of this model is leadership with a managerial orientation of support. The employees in turn are oriented towards job performance and participation. The employee need that is met is status and recognition. The performance result is awakened drives.

The supportive model is founded on leadership, not on money or authority. In fact, it is the managerial leadership style that provides an atmosphere to help employees grow and accomplish their tasks successfully. The managers recognize that the workers are not by nature passive and disinterested to organizational needs, but they are made so by an inappropriate leadership style. The managers believe that given due and appropriate changes, the workers become ready to share responsibility, develop a drive to contribute their mite and improve them. Thus, under supportive approach, the management’s orientation is to support the employee’s job performance for meeting both organizational and individual goals.

However, the supportive model of organizational behaviour is found more useful and effective in developed nations and less effective in developing nations like ours because of employee’s more awakening in the former and less one in the latter nations.

The Collegial Model

The collegial model is an extension of the supportive model. As the literal meaning of the work ‘college’ means a group of persons having the common purpose, the collegial model relates to a team work/concept. The basic foundation of the collegial model lies on management’s building a feeling of partnership with employee. Under collegial approach, employees feel needed and useful. They consider managers as joint contributors to organizational success rather than as bosses.

Its greatest benefit is that the employee becomes self-discipline. Feeling responsible backed by self-discipline creates a feeling of team work just like what the members of a football team feel. The research studies report that compared to traditional management model, the more open, participative, collegial managerial approach produced improved results in situations where it is appropriate.

Although there are four separate models, almost no organization operates exclusively in one. There will usually be a predominate one, with one or more areas overlapping in the other models.

The first model, autocratic, had its roots in the industrial revolution. The managers of this type of organization operate out of McGregor’s Theory X. The next three models begin to build on McGregor’s Theory Y. They have each evolved over a period of time and there is no one “best” model. The collegial model should not be thought as the last or best model, but the beginning of a new model or paradigm.

The situations under which these can be effective:

1. Autocratic model

Autocratic model is the model that depends upon strength, power and formal authority.

In an autocratic organisation, the people (management/owners) who manage the tasks in an organisation have formal authority for controlling the employees who work under them. These lower-level employees have little control over the work function. Their ideas and innovations are not generally welcomed, as the key decisions are made at the top management level.

The guiding principle behind this model is that management/owners have enormous business expertise, and the average employee has relatively low levels of skill and needs to be fully directed and guided. This type of autocratic management system was common in factories in the industrial revolution era.

One of the more significant problems associated with the autocratic model is that the management team is required to micromanage the staff – where they have to watch all the details and make every single decision. Clearly, in a more modern-day organisation, where highly paid specialists are employed an autocratic system becomes impractical and highly inefficient.

The autocratic model is also a detractor to job satisfaction and employee morale. This is because employees do not feel valued and part of the overall team. This leads to a low-level of work performance. While the autocratic model might be appropriate for some much automated factory situations, it has become outdated for most modern-day organisations.

2. Custodial model

The custodial model is based around the concept of providing economic security for employees – through wages and other benefits – that will create employee loyalty and motivation.

In some countries, many professional companies provide health benefits, corporate cars, financial packaging of salary, and so on – these are incentives designed to attract and retain quality staff.

The underlying theory for the organisation is that they will have a greater skilled workforce, more motivated employees, and have a competitive advantage through employee knowledge and expertise.

One of the downsides with the custodial model is that it also attracts and retains low performance staff as well. Or perhaps even deliver a lower level of motivation from some staff who feel that they are “trapped” in an organisation because the benefits are too good to leave.

3. Supportive model

Unlike the two earlier approaches, the supportive model is focused around aspiring leadership.

It is not based upon control and authority (the autocratic model) or upon incentives (the custodial model), but instead tries to motivate staff through the manager-employee relationship and how employees are treated on a day-to-day basis.

Quite opposite to the autocratic model, this approach states that employees are self-motivated and have value and insight to contribute to the organisation, beyond just their day-to-day role.

The intent of this model is to motivate employees through a positive workplace where their ideas are encouraged and often adapted. Therefore, the employees have some form of “buy-in” to the organisation and its direction.

4. Collegial model

The collegial model is based around teamwork – everybody working as colleagues (hence the name of the model).

The overall environment and corporate culture need to be aligned to this model, where everybody is actively participating – is not about status and job titles – everybody is encouraged to work together to build a better organisation.

The role of the manager is to foster this teamwork and create positive and energetic workplaces. In much regard, the manager can be considered to be the “coach” of the team. And as coach, the goal is to make the team perform well overall, rather than focus on their own performance, or the performance of key individuals.

The collegial model is quite effective in organisations that need to find new approaches – marketing teams, research and development, technology/software – indeed anywhere the competitive landscape is constantly changing and ideas and innovation are key competitive success factors.

4(a) Explain Maslow’s Need Hierarchy Theory with examples.

-> Maslow’s hierarchy of needs is a theory in psychology proposed by Abraham Maslow in his 1943 paper “A Theory of Human Motivation” in Psychological Review . Maslow subsequently extended the idea to include his observations of humans’ innate curiosity. His theories parallel many other theories of human developmental psychology , some of which focus on describing the stages of growth in humans. He then decided to create a classification system which reflected the universal needs of society as its base and then proceeding to more acquired emotions. Maslow’s hierarchy of needs is used to study how humans intrinsically partake in behavioural motivation . Maslow used the terms “physiological”, “safety”, “belonging and love”, “social needs” or “esteem”, and ” self-actualization ” to describe the pattern through which human motivations generally move. This means that in order for motivation to arise at the next stage, each stage must be satisfied within the individual themselves. Additionally, this theory is a main base in knowing how effort and motivation are correlated when discussing human behaviour . Each of these individual levels contains a certain amount of internal sensation that must be met in order for an individual to complete their hierarchy. The goal in Maslow’s theory is to attain the fifth level or stage: self-actualization.

Maslow’s theory was fully expressed in his 1954 book Motivation and Personality . The hierarchy remains a very popular framework in sociology research, management training

and secondary and higher psychology instruction. Maslow’s classification hierarchy has been revised over time. The original hierarchy states that a lower level must be completely satisfied and fulfilled before moving onto a higher pursuit. However, today scholars prefer to think of these levels as continuously overlapping each other. This means that the lower levels may take precedence back over the other levels at any point in time.

Maslow’s hierarchy of needs is a theory of psychology explaining human motivation based on the pursuit of different levels of needs. The theory states that humans are motivated to fulfil their needs in a hierarchical order. This order begins with the most basic needs before moving on to more advanced needs. The ultimate goal of this theory is to reach the fifth level of the hierarchy: self-actualization.

Maslow’s hierarchy of needs was first introduced in Abraham Maslow’s 1943 paper, “ A Theory of Human Motivation “. Maslow later refined this theory in 1954 with his book, “ Motivation and Personality “. Since then, this theory has remained a popular subject in sociology, management training , and psychology classes.

Levels of Hierarchy

There are five main levels to Maslow’s hierarchy of needs. These levels begin from the most basic needs to the most advanced needs. Maslow originally believed that a person needed to completely satisfy one level to begin pursuing further levels.

A more modern perspective is that these levels overlap. As a person reaches higher levels, their motivation is directed more towards these levels. However, though their main focus is on higher levels, they will still continue to pursue lower levels of the hierarchy but with less intensity.

1. Physiological Needs- Physiological needs are the lowest level of Maslow’s hierarchy of needs. They are the most essential things a person needs to survive. This includes the need for shelter, water, food, warmth, rest, and health. A person’s motivation at this level derives from their instinct to survive.

2. Safety Needs- The second level of Maslow’s hierarchy of needs consists of safety needs. Safety, or security needs, relate to a person’s need to feel safe and secure in their life and surroundings. Motivation comes from the need for law, order, and protection from unpredictable and dangerous conditions.

There are many examples of safety needs in modern society. To find stability and security, a person must consider their physical safety. This means seeking protection from the elements, violent conditions, or health threats and sickness. Additionally, an individual needs economic safety to live and thrive in modern societies. This refers to the need for job security, stable income, and savings. One method of achieving economic safety is to learn proper investment strategies .

3. Love and Belonging Needs

The third level of Maslow’s hierarchy of needs is love and belonging needs. Humans are social creatures that crave interaction with others. This level of the hierarchy outlines the need for friendship, intimacy, family, and love. Humans have the need to give and receive love; to feel like they belong in a group. When deprived of these needs, individuals may experience loneliness or depression.

4. Esteem Needs

The fourth level of Maslow’s hierarchy of needs is esteem needs. Esteem needs are related to a person’s need to gain recognition, status, and feel respected. Once someone has fulfilled their love and belonging needs, they seek to fulfil their esteem needs.

Maslow broke up esteem needs into two categories: the need for respect from others and the need for respect from oneself. Respect from others relates to achieving fame, prestige, and recognition. Respect from oneself relates to dignity, confidence, competence, independence, and freedom.

5. Self-Actualization Needs

The fifth and final level of Maslow’s hierarchy of needs is self-actualization needs. Self-actualization relates to the realization of an individual’s full potential. At this level, people strive to become the best that they possibly can be.

The need for self-actualization can manifest in different ways, such as:

Obtaining skills (e.g. financial modelling skills)

Continued education (e.g. online training courses )

Utilizing skills, knowledge, and talents

Pursuing life dreams

Seeking happiness

One person may strive to become the best parent and everyone’s best friend. Another person might aim to become a millionaire and philanthropist. Others may work toward becoming a famous athlete. In general, self-actualization is the pursuit of personal growth.

Examples of Maslow’s Hierarchy of Needs

In general, a person’s motivation lies in the level of the hierarchy that they are currently pursuing. Here are some situations that are examples of this.

For example, if a person is lost in the woods, they are likely looking to fulfil their physiological needs. They may be hungry, thirsty, lacking shelter, or cold. This individual would probably not be concerned with their financial security or their need to belong in a group. They are looking to fulfil the conditions for their immediate survival.

Conversely, we can consider a senior financial analyst . This is someone who has a secure, high-paying job, a spouse, family, and house. This person is in a well-respected position at their company and among their peers. It is unlikely that this person’s motivation focuses on their physiological or safety needs, as these are clearly fulfilled. Instead, they would be looking to strive for personal growth and happiness. They would be looking to fulfil their self-actualization needs and discover what else the world has to offer, and what they have to offer the world.

(b) What do you mean by leadership style? How can leadership style be decided based on the use of power and authority?

-> The term leadership style refers to behavioural pattern employed by a leader to integrate organizational and personal interests in the pursuit of some goal or objective. The type of leadership style available in an organization has a great deal to do with the implementation of strategies.

In management literature, different researchers have identified different styles. For instance there are three distinct types of leadership styles — authoritarian, democratic and laissez-faire.

Consideration and initiating structure, accomplishment and personal relationship are important dimensions of leadership style which emphasis on employee-oriented supervision. The essence of leadership style lies in task behaviour, relationship behaviour and effectiveness.

The extensive research in the relationship between management style, the nature of environment and effectiveness reveals that there are basically seven styles of leaderships whose characteristics can be explained in the following five dimensions.

Characteristics of Leadership Styles

1. Risk Taking: Willingness to make high — risk, high-return decisions.

2. Technology: Degree of commitment to planning, employment of technically qualified persons, and practice of management science techniques.

3. Organ city: Degree of loose and flexible organizational structuring; low organ city is mechanistic in tightly structured organizations.

4. Participation: High participation implies extensive participation of those other than the top management in key positions.

5. Coercion: High coercion means extensive use of fear and domination by top managers as a management technique.

The environment along the following dimensions shall be characterized as follows:

1. Degree of Turbulence of Volatility: Fast changeability and unpredictability.

2. Degree of Hostility: Hostile environments are highly risky and overwhelming.

3. Degree of Heterogeneity: This refers to diversity of markets and types of consumers.

4. Degree of Restrictiveness: Restrictiveness means many economic legal, social and political constraints.

5. Degree of Technological Sophistication: With complex technologies, R & D is necessary for survival.

When the management style matches the strategic choice (firm’s environment), firms tend to be more effective. However, the leadership style that an individual selects should depend on the situation in which he finds himself, the type of strategy to be managed, and the general environmental variables.

Leadership style can be based on the use of power and authority:

Leadership styles refer to a leader’s behaviour toward group members. The behaviour pattern is that the leader reflects his role as a leader is described as style.

Leadership style is the results of a leader’s philosophy, personality, and experience and value system.

Leadership styles based on power and authority can be 4 types:

1. Autocratic Leadership,

2. Democratic or Participative Leadership,

3. Free-Rein or Laisse-Faire Leadership, and

4. Paternalistic Leadership.

Let’s know how this leadership styles work and know about theirs advantages and disadvantages;

Autocratic Leadership

Autocratic Leadership relies on coercion, and its style is paternalism, arbitrariness, command, and compliance. The autocratic leader gives orders which must be obeyed by the subordinates.

He determines policies for the group without consulting them and does not give detailed information about plans, but simply tells the group what immediate steps they must take.

Diagrammatically it may be shown in the following way;

However, some autocratic leaders may happen to be “benevolent autocrats.”

Generally, they are willing to hear and consider subordinates’ ideas and suggestions, but when a decision is to be made, they turn out to be more autocratic than benevolent.

Advantages of autocratic leadership

§ It is the speed with which decisions can be made; the leader does not have to obtain group members’ approval before deciding.

Disadvantages of autocratic leadership

§ Autocratic leadership does hurt group morale.

§ Members may resent how decisions are made and thus support them in only a minimal fashion.

Democratic Leadership

The style of leadership that uses legitimate power can be classified as democratic leadership.

A democratic leader usually gives instructions only after consulting with the group. He sees to it that policies are worked out in group discussion and with the acceptance of the group.

That means democratic leadership solicits employees’ participation and respects their opinions. Diagrammatically it can be shown in the following way;

Advantages of democratic leadership

§ It often enhances the morale of the employees .

§ It increases the acceptance of management’s ideas.

§ It increases cooperation between management and employees.

§ It leads to a reduction in the number of complaints and grievances.

Disadvantages of democratic leadership

§ It accounts for slow decisions, diluted accountability for decisions.

§ There may be possible compromises that are designed to please everyone but does not give the best solution.

Free-Rein Leadership

The leadership style which allows maximum freedom to followers may be called free-rein leadership. It gives employees a high degree of independence in their operations.

A free rein leader completely abdicates his leadership position, to give all responsibility of most of the work entrusted to him to the group which he is supposed to lead, limiting his authority to maintain the contact of the group with persons outside the group.

This is also known as the permissive style of leadership.

Diagrammatically it may be shown in the following way;

Advantages of free rein leadership

§ Opportunity for individual development is offered to group members.

§ All persons are given a chance to express themselves and to function relatively independently.

Disadvantages of free rein leadership

§ It may result in a lack of group cohesion and unity toward organizational objectives.

§ Without a leader, the group may have little direction and a lack of control.

§ The result can be inefficiency or even worse, chaos.

Paternalistic Leadership

Under Paternalistic Leadership, the leader assumes that his function is paternal or fatherly.

His attitude is that of treating the relationship between the leader and the group as that of a family with the leader as the head of the family.

He works to help, guide, protect, and keep his followers happily working together as members of a family.

He provides them with good working conditions and employee services.

This style has been successful, particularly in Japan because of its cultural background. It is said that employees under such leadership will work harder out of gratitude.

This mode of leadership produces good and quick results if the followers are highly educated and brilliant, and have a sincere desire to go ahead and perform with responsibility.

5(a) Define communication as a process. Discuss the steps for making communication effective.

-> The Communication is a two-way process wherein the message in the form of ideas, thoughts, feelings, opinions is transmitted between two or more persons with the intent of creating a shared understanding.

Simply, an act of conveying intended information and understanding from one person to another is called as communication. The term communication is derived from the Latin word “Communis” which means to share. Effective communication is when the message conveyed by the sender is understood by the receiver in exactly the same way as it was intended. The communication is a dynamic process that begins with the conceptualizing of ideas by the sender who then transmits the message through a channel to the receiver, who in turn gives the feedback in the form of some message or signal within the given time frame. Thus, there are seven major elements of communication process:

1. Sender: The sender or the communicator is the person who initiates the conversation and has conceptualized the idea that he intends to convey it to others.

2. Encoding: The sender begins with the encoding process wherein he uses certain words or non-verbal methods such as symbols, signs, body gestures, etc. to translate the information into a message. The sender’s knowledge, skills, perception, background, competencies, etc. has a great impact on the success of the message.

3. Message: Once the encoding is finished, the sender gets the message that he intends to convey. The message can be written, oral, symbolic or non-verbal such as body gestures, silence, sighs, sounds, etc. or any other signal that triggers the response of a receiver.

4. Communication Channel: The Sender chooses the medium through which he wants to convey his message to the recipient. It must be selected carefully in order to make the message effective and correctly interpreted by the recipient. The choice of medium depends on the interpersonal relationships between the sender and the receiver and also on the urgency of the message being sent. Oral, virtual, written, sound, gesture, etc. are some of the commonly used communication mediums.

5. Receiver: The receiver is the person for whom the message is intended or targeted. He tries to comprehend it in the best possible manner such that the communication objective is attained. The degree to which the receiver decodes the message depends on his knowledge of the subject matter, experience, trust and relationship with the sender.

6. Decoding: Here, the receiver interprets the sender’s message and tries to understand it in the best possible manner. An effective communication occurs only if the receiver understands the message in exactly the same way as it was intended by the sender.

7. Feedback: The Feedback is the final step of the process that ensures the receiver has received the message and interpreted it correctly as it was intended by the sender. It increases the effectiveness of the communication as it permits the sender to know the efficacy of his message. The response of the receiver can be verbal or non-verbal.

Effective communication is a good business and very essential for the success of an organization. Communication takes place when one person transfers information and understanding to another person. An effective communication is one which is followed by the receiver of the message and his reaction or response is known to the sender. It is a two-way process. It may not be possible to achieve perfect communication.

The following steps may be taken to minimize barriers to communication and making it more effective:

1. Clarity and Completeness:

In order to communicate effectively, it is very essential to know the ‘audience’ for whom the message is meant. The message to be conveyed must be absolutely clear in the mind of the communicator because if you do not understand an idea, you can never express it to someone. The message should be adequate and appropriate to the purpose of communication. The purpose of communication, itself, should be clearly defined.

2. Proper Language:

To avoid semantic barriers, the message should be expressed in simple, brief and clear language. The words or symbols selected for conveying the message must be appropriate to the reference and understanding of the receiver.

3. Sound Organization Structure:

To make communication effective, the organizational structure must be sound and appropriate to the needs of the organization. Attempt must be made to shorten the distances to be travelled for conveying information.

4. Orientation of Employees:

The employees should be oriented to understand the objectives, rules, policies, authority relationships and operations of enterprise. It will help to understand each other, minimize conflicts and distortion of messages.

5. Emphatic Listening and Avoid Premature Evaluation:

To communicate effectively, one should be a good listener. Superiors should develop the habit of patient listening and avoid premature evaluation of communication from their subordinates. This will encourage free flow of upward communication.

6. Motivation and Mutual Confidence:

The message to be communicated should be so designed as to motivate the receiver to influence his behaviour to take the desired action. A sense of mutual trust and confidence must be generated to promote free flow of information.

7. Consistent Behaviour:

To avoid credibility gap management must ensure that their actions and deeds are in accordance with their communication.

8. Use of Grapevine:

Grapevine or the informal channels of communication help to improve managerial decisions and make communication more effective. Thus, formal channels of communication must be supplemented with the use of grapevine.

9. Feedback:

Communication is not complete unless the response or reaction of the receiver of the message is obtained by the communicator. The effectiveness of communication can be judged from the feedback. Therefore, feedback must be encouraged and analyzed.

10. Gestures and Tone:

The way you say something is also very important along with the message for gestures such as a twinkle of an eye, a smile or a handshake, etc., convey sometimes more meaning than even words spoken or written. Thus, one should have appropriate facial expression, tone, gestures and mood, etc. to make communication effective.

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