Fall 2010

Master of Business Administration-MBA Semester 1

MB0038 – Management Process and Organization Behavior - 4 Credits
(Book ID: B1127)
Assignment Set- 1 (60 Marks)
Note: Each question carries 10 Marks. Answer all the questions.
Q.1 Write a note on the managerial roles and skills. [10]
Ans: Ans: Management Skills
A manager's job is varied and complex. Managers need certain skills to
perform the duties and activities associated with being a manager. Robert
L. Katz found that Managers need three essential skills or competencies:
technical, human, and conceptual.
1. Technical skills involve process or technique knowledge and
proficiency in a certain specialized field, such as engineering, computers,
accounting, or manufacturing. These skills are more important at lower
levels of management since these managers are dealing directly with
employees doing the organization's work.
The technical skills involve the manager's understanding of the nature of job
that people under him have to perform. It refers to a person's knowledge
and proficiency in any type of process or technique. In a production
department, this would mean an understanding of the technicalities of the
process of production. Whereas this type of skill and competence seems to
be more important at the lower levels of management, its relative
importance as a part of the managerial role diminishes as the manager
moves to higher positions. In higher functional positions, such as the
position of a marketing manager or production manager, the conceptual
component, related to these functional areas becomes more important and
the technical component becomes less important.
2. Human skills involve the ability to interact effectively with people.
Managers interact and cooperate with employees. Because managers deal
directly with people, this skill is crucial! Managers with good human skills
are able to get best out of their people. They know how to communicate,
motivate, lead, and inspire enthusiasm and trust. These skills are equally
important at all levels of management.
Human skills are also the ability to interact effectively with people at all
levels. This skill develops in the manager sufficient ability:
a) to recognise the feelings and sentiments of others;
b) to judge the possible reactions to, and outcomes of various courses of
action he may undertake; and
c) to examine his own concepts and values which may enable him to
develop more useful attitudes about himself.
This type of skill remains consistently important for managers at all levels.
3. Conceptual skills involve the formulation of ideas, conceptualization
about abstract and complex situations. Managers understand abstract
relationships, develop ideas, and solve problems creatively. Using these
skills, managers must be able to see the organization as a whole. They
have to understand the relationships among various subunits, and
visualize how organization fits into its broader environment. These skills
are most important at the top management levels.
Conceptual skills refer to the ability of a manager to take a broad and
farsighted view of the organisation and its future, his ability to think in
abstract, his ability to analyse the forces working in a situation, his creative
and innovative ability and his ability to assess the environment and the
changes taking place in it. In short, it is his ability to conceptualise the
environment, the organisation, and his own job, so that he can set
appropriate goals for his organisation, for himself and for his team. This skill seems
to increase in importance as a manager move up to higher positions
of responsibility in the organisation. Thus, technical skill deals with things,
human skill concerns people, and conceptual -skill has to do with ideas.
A manager's level in the organization determines the relative importance of
possessing technical, human, and conceptual skills. Top level managers
need conceptual skills in order to view the organization as a whole.
Conceptual skills are used in planning and dealing with ideas and
abstractions. Supervisors need technical skills to manage their area of
specialty. All levels of management need human skills in order to interact
and communicate with other people successfully.

Managerial Roles
To meet the many demands of performing their functions, managers
assume multiple roles. Henry Mintzberg has identified ten roles common to
the work of all managers. The ten roles are divided into three groups:
interpersonal, informational, and decisional. The informational roles link all
managerial work together. The interpersonal roles ensure that information
is provided. The decisional roles make significant use of the information.
The performance of managerial roles and the requirements of these roles
can be played at different times by the same manager and to different degrees
depending on the level and function of management. The ten
roles are described individually, but they form an integrated whole.
The idea of a role comes from sociology and is the pattern of actions
expected of a person in his activities involving others. It arises as a result
of the position that he occupies in a group in a given situation. Thus, a
manager who occupies different positions in different situations plays
different roles because people in each situation have different
expectations of him concerning his functions. supervisor. In the role of
spokesperson, the manager disseminates the
organization's information into its environment. Thus, the top level manger
is seen as an industry expert, while the supervisor is seen as a unit or
departmental expert.
1. Monitor – As monitor, the manager has to perpetually scan his
environment for information, interrogate his liaison contacts and his
subordinates, and receive unsolicited information, much of it as a result
of the network of personal contacts he has developed.
2. Disseminator – In the role of a disseminator, the manager passes
some of his privileged information directly to his subordinates who
would otherwise have no access to it.
3. Spokesman – In this role, the manager informs and satisfies various
groups and people who influence his organisation. Thus, he advises
shareholders about financial performance, assures consumer groups
that the organisation is fulfilling its social responsibilities and satisfies
government that the organisation is abiding by the law.
1.4.3 The Decisional Role
The unique access to information places the manager at the centre of
organizational decision-making. There are four decisional roles. In the
entrepreneur role, the manager initiates change. In the disturbance
handler role, the manager deals with threats to the organization will
expend its efforts. In the negotiator role, the manager negotiates on behalf
of the organization. The top level manager makes the decisions about the
organization as a whole, while the supervisor makes decisions about his or
her particular work unit.
1. Entrepreneur – In this role, the manager constantly looks out for new
ideas and seeks to improve his unit by adapting it to changing
conditions in the environment.
2. Disturbance Handler – In this role, the manager has to work like a fire
fighter. He must seek solutions of various unanticipated problems – a
strike may loom large, a major customer may go bankrupt, a supplier
may renege on his contract, and so on.
3. Resource Allocator – In this role, the manager must divide work and
delegate authority among his subordinates. He must decide who will
get what.
4. Negotiator – The manager has to spend considerable time in
negotiations. Thus, the president of a company may negotiate with the
union leaders, a new strike issue; the foreman may negotiate with the
workers a grievance problem, and so on.

Q.2 Discuss the methods of shaping behavior in detail.

Ans: Learning is a relatively permanent change in behavior. Through learning the
behavior of an individual can be changed or modified. There are various theories of
learning to modify behavior. These theories are dicussed as below:
1. Classical conditioning theory
2. Operant conditioning theory
3. Cognitive learning theory and
4. Social learning theory

2.5.1 Classical Conditioning: Classical conditioning is one of the

simplest forms of learning, yet it has a powerful effect on our attitudes, likes
and dislikes, and emotional responses. We have all learned to respond in
specific ways to a variety of words and symbols. Our lives are profoundly
influenced by associations we learn through classical conditioning. Ivan
Pavlov's research on the conditioned reflex in dogs revealed much of what
we know about the principles of classical conditioning.
Classical Conditioning of Pavlov: Ivan Pavlov (1849 - 1936) organized
and directed research in physiology at the Institute of Experimental Medicine
in St. Petersburg, Russia from 1891 until his death in 1936. His book
"Conditioned Reflexes" is one of the classic works in psychology.
Classical conditioning is modifying behaviour so that a conditioned stimulus
is paired with an unconditioned stimulus and elicits an unconditioned
behaviour. Ivan Pavlov, a Russian psychologist developed classical
conditioning theory based on his experiments to teach a dog to salivate in
response to the ringing of a bell. When Pavlov presented meat
(unconditioned stimulus) to the dog, he noticed a great deal of salivation
(conditioned response). But, when merely bell was rung, no salivation was
noticed in the dog. What Pavlov did next was to link the meat and the
ringing of the bell. He did this several times. Afterwards, he merely rang the
bell without presenting the meat. Now, the dog began to salivate as soon as
the bell rang. After a while, the dog would salivate merely at the sound of
the bell, even if no meat were presented. In effect, the dog had learned to
respond, i.e., to salivate at the sound of bell, since it was conditioned to link
the sound of the bell with the offering of meat.

Classical conditioning introduces a simple cause-and-effect relationship

between one stimulus and response. It also makes the response reflective
or involuntary after the stimulus-response relationship has been established.
This leaves no ground for making choices, which factor differentiates human
beings from dogs. Under certain situations, classical conditioning does
explain human behaviour. For example, if a student is always reprimanded
by his Principal when he is summoned to the principal's office, he may
become nervous whenever asked to come to the principal's office because
of this association.
2.5.2 Operant Conditioning Theory: Operant conditioning argues that
behaviour is a function of its consequences. People learn to behave to get
something they want or avoid something they don't want. Operant behaviour
means voluntary or learned behaviour in contrast to reflexive or unlearned
behaviour. The tendency to repeat such behaviour is influenced by the
reinforcement or lack of reinforcement brought about by the consequences
of the behaviour. Reinforcement therefore strengthens behaviour and
increases the likelihood that it will be repeated.
What Pavlov did for classical conditioning, the Harvard psychologist B.F
Skinner did for operant conditioning.
Operant conditioning induces a voluntary change in behaviour and learning
occurs as a "consequence" of such change. It is also known as
reinforcement theory and it suggests that behaviour is a function of its
consequences. It is based upon the premise that behaviour or job
performance is not a function of inner thoughts, feelings, emotions or
perceptions but is keyed to the nature of the outcome of such behaviour.
The consequences of a given behaviour would determine whether the same
behaviour is likely to occur in future or not. Based upon this direct
relationship between the consequences and behaviour, the management
can study and identify this relationship and try to modify and control
behaviour. Thus, the behaviour can be controlled by manipulating its
consequences. This relationship is built around two principles:
 The behaviour that results in positive rewards tends to be repeated and
behaviour with negative consequences tends not to be repeated.
 Based upon such consequences, the behaviour can be predicted and
controlled.
Hence, certain types of consequences can be used to increase the
occurrence of a desired behaviour and other types of consequences can be
used to decrease the occurrence of undesired behaviour. The
consequences of behaviour are used to influence, or shape behaviour
through three strategies: reinforcement, punishment and extinction. Thus,
operant conditioning is the process of modifying behaviour through the use
of positive or negative consequences following specific behaviours.
From an organizational point of view, any stimulus from the work
environment will elicit a response. The consequence of such a response will
determine the nature of the future response. For example, working hard and
getting the promotion will probably cause the person to keep working hard in
the future.
2.5.3 Cognitive Learning theory
Cognitive focuses on an unobservable change in mental knowledge.
Cognitive learning is learning achieved by thinking about the perceived
relationship between events and individual goals and expectations.
Cognition refers to individual's ideas, thoughts, knowledge, interpretation
and understanding about the individuals and environment.
2.5.4 Social learning Theory
Social learning focuses on the learning that occurs within a social context. It
considers how people learn from one another, encompassing such concepts
as observational learning, imitation, and modelling. Modelling, learning is
done by observing others behaviour through reinforcement, environment
and the interactions with the world and society.
Principles of Social Learning Theory
1. People can learn by observing the behaviours of others and the
outcomes of those behaviours.
2. Learning can occur without a change in behaviour.
3. The consequences of behaviour play a role in learning.
4. Cognition plays a role in learning.
Four processes have been found to determine the influence that a model
will have on an individual.
1. Attention processes: People only learn from a model when they
recognize and pay attention to its critical features. We tent to be most
influenced by models that are attractive, repeatedly available, important
to us, or similar to us in our estimation.
2. Retention processes: A model influence will depend on how well the
individuals remember the model action after the model is no longer
readily available.
3. Motor reproduction processes: After a person has a new behaviour by
observing the model, watching must be converted to doing.

Q.3 Explain the classification of personality types given by Myers -Briggs.

Ans: Myers- Briggs Personality Type Indicators:
Myers-Briggs developed the Myers-Briggs Type Indicator, a commercially
available questionnaire, which is widely used in business and training, etc.
and which provides information and exercises for better understanding one's
own personality type and others with who the individual interacts and works.
Keirsey has renamed and re-conceptualized the Jungian types, but they
relate very closely to the Jungian types. Keirsey refers to "temperaments"
rather than personality.
Underlying all these typologies are four personality traits (functions):
1. Extroversion (E) --- Introversion (I)
Do you recharge your energy via external contact & activity
(Extroversion) or spending time in your inner space (Introversion)?
2. Intuition (N) --- Sensing (S)
Do you rely on your inner voice (Intuition) or observation (Sensing)?
3. Thinking (T) --- Feeling (F)
When making decisions, what do you rely most on? Your thoughts or
your feelings?
4. Judgement (J) --- Perception (P)
Do you tend to set schedules and organize your life (Judgement), or do
you tend to leave the options open and see what happens (Perception)?
Using the letters above, it is possible to have a unique 4 letter code to
indicate each of the 16 Jungian personality types, e.g., I am an INTJ.

Q.4 What are the factors influencing perception?

Ans: Factors Influencing Perception
A number of factors operate to shape and sometimes distort perception.
These factors can reside:
i) In the perceiver.
ii) In the object or target being perceived or
iii) In the context of the situation in which the perception is made.
1. Characteristics of the Perceiver: Several characteristics of the
perceiver can affect perception. When an individual looks at a target and
attempts to interpret what he or she stands for, that interpretation is
heavily influenced by personal characteristics of the individual perceiver.
The major characteristics of the perceiver influencing perception are:
a) Attitudes: The perceiver's attitudes affect perception. For example,
suppose Mr. X is interviewing candidates for a very important position
in his organization - a position that requires negotiating contracts with
suppliers, most of whom are male. Mr X may feel that women are not
capable of holding their own in tough negotiations. This attitude will
doubtless affect his perceptions of the female candidates he
interviews.
b) Moods: Moods can have a strong influence on the way we perceive
someone. We think differently when we are happy than we do when
we are depressed. In addition, we remember information that is
consistent with our mood state better than information that is
inconsistent with our mood state. When in a positive mood, we form
more positive impressions of others. When in a negative mood, we
tend to evaluate others unfavourably.
c) Motives: Unsatisfied needs or motives stimulate individuals and may
exert a strong influence on their perceptions. For example, in an organizational
context, a boss who is insecure perceives a
subordinate's efforts to do an outstanding job as a threat to his or her
own position. Personal insecurity can be translated into the
perception that others are out to "get my job", regardless of the
intention of the subordinates.
d) Self-Concept: Another factor that can affect social perception is the
perceivers' self-concept. An individual with a positive self-concept
tends to notice positive attributes in another person. In contrast, a
negative self-concept can lead a perceiver to pick out negative traits
in another person. Greater understanding of self allows us to have
more accurate perceptions of others.
e) Interest: The focus of our attention appears to be influenced by our
interests. Because our individual interests differ considerably, what
one person notices in a situation can differ from what others perceive.
For example, the supervisor who has just been reprimanded by his
boss for coming late is more likely to notice his colleagues coming
late tomorrow than he did last week. If you are preoccupied with a
personal problem, you may find it hard to be attentive in class.
f) Cognitive Structure: Cognitive structure, an individual's pattern of
thinking, also affects perception. Some people have a tendency to
perceive physical traits, such as height, weight, and appearance,
more readily. Others tend to focus more on central traits, or
personality dispositions. Cognitive complexity allows a person to
perceive multiple characteristics of another person rather than
attending to just a few traits.
g) Expectations: Finally, expectations can distort your perceptions in
that you will see what you expect to see. The research findings of the
study conducted by Sheldon S Zalkind and Timothy W Costello on
some specific characteristics of the perceiver reveal:
• Knowing oneself makes it easier to see others accurately.
• One's own characteristics affect the characteristics one is likely to
see in others.
• People who accept themselves are more likely to be able to see
favourable aspects of other people.
• Accuracy in perceiving others is not a single skill.
These four characteristics greatly influence how a person perceives
others in the environmental situation.
Q.5 Mr. Solanki is the VP- HR of a leading Financial services company. He is having a meeting
with Ms. Ramani leading HR consultant. Mr. Solanki is concerned about creating an
environment that helps in increasing the job satisfaction amongst employees. Assume that you
are Ms. Ramani, the HR consultant. What suggestions you will give to Mr. Solanki, for creating
an environment that increases job satisfaction [10]
Q.6 Given below is the HR policy glimpse of the “VARK-LEARNING” a learning and training
solutions company
1. It offers cash rewards for staff members
2. It promotes the culture of employee referral and encourages people to refer people they know
may be their friends, ex. Colleagues batch mates, relatives.
3. What all needs do it takes care off according to maslow’s need hierarchy
4. It recognizes good performances and give fancy titles and jackets to the people who perform
well and also felicitates them in the Annual Day of the company.
What all aspects does it takes care of according to the Maslow’s Need Hierarchy ? [10] Fall 2010
Master of Business Administration-MBA Semester 1
MB0038 – Management Process and Organization Behavior - 4 Credits
(Book ID: B1127)
Assignment Set- 2 (60 Marks)
Note: Each question carries 10 Marks. Answer all the questions.
Q.1 Write a note on classical era for evolution of Organization behaviour. [10]

Ans: Classical Organization Theory

Classical organization theory evolved during the first half of this century. It represents the
merger of scientific management, bureaucratic theory, and administrative theory.

Frederick Taylor (1917) developed scientific management theory (often called "Taylorism") at
the beginning of this century. His theory had four basic principles: 1) find the one "best way" to
perform each task, 2) carefully match each worker to each task, 3) closely supervise workers, and
use reward and punishment as motivators, and 4) the task of management is planning and
control.

Initially, Taylor was very successful at improving production. His methods involved getting the
best equipment and people, and then carefully scrutinizing each component of the production
process. By analyzing each task individually, Taylor was able to find the right combinations of
factors that yielded large increases in production.

While Taylor's scientific management theory proved successful in the simple industrialized
companies at the turn of the century, it has not faired well in modern companies. The philosophy
of "production first, people second" has left a legacy of declining production and quality,
dissatisfaction with work, loss of pride in workmanship, and a near complete loss of
organizational pride.

Max Weber (1947) expanded on Taylor's theories, and stressed the need to reduce diversity and
ambiguity in organizations. The focus was on establishing clear lines of authority and control.
Weber's bureaucratic theory emphasized the need for a hierarchical structure of power. It
recognized the importance of division of labor and specialization. A formal set of rules was
bound into the hierarchy structure to insure stability and uniformity. Weber also put forth the
notion that organizational behavior is a network of human interactions, where all behavior could
be understood by looking at cause and effect.

Administrative theory (i.e., principles of management) was formalized in the 1930's by Mooney
and Reiley (1931). The emphasis was on establishing a universal set of management principles
that could be applied to all organizations.

Classical management theory was rigid and mechanistic. The shortcomings of classical
organization theory quickly became apparent. Its major deficiency was that it attempted to
explain peoples' motivation to work strictly as a function of economic reward.

Neoclassical Organization Theory

The human relations movement evolved as a reaction to the tough, authoritarian structure of
classical theory. It addressed many of the problems inherent in classical theory. The most serious
objections to classical theory are that it created overconformity and rigidity, thus squelching
creativity, individual growth, and motivation. Neoclassical theory displayed genuine concern for
human needs.

One of the first experiments that challenged the classical view was conducted by Mayo and
Roethlisberger in the late 1920's at the Western Electric plant in Hawthorne, Illinois (Mayo,
1933). While manipulating conditions in the work environment (e.g., intensity of lighting), they
found that any change had a positive impact on productivity. The act of paying attention to
employees in a friendly and nonthreatening way was sufficient by itself to increase output. Uris
(1986) referred to this as the "wart" theory of productivity. Nearly any treatment can make a wart
go away--nearly anything will improve productivity. "The implication is plain: intelligent action
often delivers results" (Uris, 1986, p. 225).

The Hawthorne experiment is quite disturbing because it cast doubts on our ability to evaluate
the efficacy of new management theories. An organization might continually involve itself in the
latest management fads to produce a continuous string of Hawthorne effects. "The result is
usually a lot of wheel spinning and cynicism" (Pascale, 1990, p. 103). Pascale believes that the
Hawthorne effect is often misinterpreted. It is a "parable about researchers (and managers)
manipulating and 'playing tricks' on employees." (p. 103) Erroneous conclusions are drawn
because it represents a controlling and manipulative attitude toward workers.

Writing in 1939, Barnard (1968) proposed one of the first modern theories of organization by
defining organization as a system of consciously coordinated activities. He stressed in role of the
executive in creating an atmosphere where there is coherence of values and purpose.
Organizational success was linked to the ability of a leader to create a cohesive environment. He
proposed that a manager's authority is derived from subordinates' acceptance, instead of the
hierarchical power structure of the organization. Barnard's theory contains elements of both
classical and neoclassical approaches. Since there is no consensus among scholars, it might be
most appropriate to think of Barnard as a transition theorist.

Simon (1945) made an important contribution to the study of organizations when he proposed a
model of "limited rationality" to explain the Hawthorne experiments. The theory stated that
workers could respond unpredictably to managerial attention. The most important aspect of
Simon's work was the rigorous application of the scientific method. Reductionism,
quantification, and deductive logic were legitimized as the methods of studying organizations.

Taylor, Weber, Barnard, Mayo, Roethlisberger, and Simon shared the belief that the goal of
management was to maintain equilibrium. The emphasis was on being able to control and
manipulate workers and their environment.

Contingency Theory

Classical and neoclassical theorists viewed conflict as something to be avoided because it

interfered with equilibrium. Contingency theorists view conflict as inescapable, but manageable.
Chandler (1962) studied four large United States corporations and proposed that an organization
would naturally evolve to meet the needs of its strategy -- that form follows function. Implicit in
Chandler's ideas was that organizations would act in a rational, sequential, and linear manner to
adapt to changes in the environment. Effectiveness was a function of management's ability to
adapt to environmental changes.

Lawrence and Lorsch (1969) also studied how organizations adjusted to fit their environment. In
highly volatile industries, they noted the importance of giving managers at all levels the authority
to make decisions over their domain. Managers would be free to make decisions contingent on
the current situation.

Systems Theory

Systems theory was originally proposed by Hungarian biologist Ludwig von Bertalanffy in 1928,
although it has not been applied to organizations until recently (Kast and Rosenzweig, 1972;
Scott, 1981). The foundation of systems theory is that all the components of an organization are
interrelated, and that changing one variable might impact many others. Organizations are viewed
as open systems, continually interacting with their environment. They are in a state of dynamic
equilibrium as they adapt to environmental changes.

Senge (1990) describes systems thinking as:

understanding how our actions shape our reality. If I believe that my current state was created by
somebody else, or by forces outside my control, why should I hold a vision? The central premise
behind holding a vision is that somehow I can shape my future, Systems thinking helps us see
how our own actions have shaped our current reality, thereby giving us confidence that we can
create a different reality in the future. (p. 136)

A central theme of systems theory is that nonlinear relationships might exist between variables.
Small changes in one variable can cause huge changes in another, and large changes in a variable
might have only a nominal effect on another. The concept of nonlinearity adds enormous
complexity to our understanding of organizations. In fact, one of the most salient argument
against systems theory is that the complexity introduced by nonlinearity makes it difficult or
impossible to fully understand the relationships between variables.

Q.2 . What is groupthink. Explain.

Ans:Definition: “Decision making by a group (especially in a manner that discourages
creativity or individual responsibility).”
“Groupthink is a type of thought exhibited by group members who try to minimize
conflict and reach consensus without critically testing, analyzing, and evaluating ideas.”
“A process of reasoning or decision-making by a group, especially one characterized by
uncritical acceptance or conformity to a perceived majority view.”

Groupthink is an interesting phenomenon which can occur when a group of people gathers to make a decision. Essentially,
desires for group cohesiveness and a quick decision cloud the judgment of the people in the group, leading to a decision
which is less than ideal. Social psychologists have studied groupthink extensively in an attempt to understand the warning
signs of this phenomenon, and to develop methods for avoiding groupthink.

Irving Janis was one of the first social psychologists to delve into groupthink, publishing a study on groupthink in the
context of foreign policy decisions in 1972. He argued that groupthink was probably responsible for some of the more
unwise decisions made by the United States government, backing up his claim with studies of group dynamics. Many
studies of groupthink focus on foreign policy, since the groups who make these kinds of decisions tend to be classically
pressured and very cohesive, setting up an ideal situation for groupthink.

Several things characterize groupthink. Members of the group tend to experience illusions of unamity, morality, and
invulnerability within the group, meaning that they think everyone agrees, they are under the impression that their
decisions are morally based, and they think that the decisions made within the group are always sound. Groupthink is also
accompanied by self-censoring, in which members of the group stifle their opinions because they are afraid of controversy.
The group often engages in heavy stereotyping of other groups and the situation they are dealing with, and there is often
an immense pressure for conformity within the group.

One of the hallmarks of groupthink is collective rationalization, in which the members of the group rationalize thoughts or
decisions in flawed ways. This rationalization is often supported by so-called “mindguards,” who prevent contradictory
information from entering the group discussion. As the members of the group work with incomplete information, high
pressure, and a desire to conform, they come up with an idea which may not be balanced and well considered, like the
decision to invade another country on the basis of flimsy evidence.

There are a number of ways to avoid groupthink. Most importantly, the group must start out with no clear expectations and
desires, and dissenting opinions must be encouraged, to the point of asking individual members of the group to argue
against ideas as they are presented. Many organizations also break groups up into smaller committees which come back to
the main group with their ideas, in the hopes of stimulating more discussion and creative ideas. In a situation where
discussing decisions with people outside the group is feasible, people are encouraged to talk with people not in the group,
to see whether their ideas will hold up in the outside world.

Q.3 Explain the process of negotiation.

Ans: Negotiation
Negotiation is the process through which the parties to a conflict define what
they are willing to give and accept in an exchange. Negotiation permeates
the interactions of almost everyone in groups and organizations. If the
conflict is complex, the negotiation process may incorporate different
strategies for different issues: avoiding some, compromising on others, and
so on.
Steps in Negotiation
We can identify four basic steps in the negotiation process. They are:
1. Preparation: Preparation for negotiations should begin long before the
formal negotiation begins. Each party gathers information about the
other side – its history, likely behaviour, previous interactions and
previous agreements reached by the parties. Each party polls its
members to determine their wishes, expectations, and preferences
regarding a new agreement.
2. Evaluation of Alternatives: The two sides attempt to identify the
bargaining range (i.e., the range in which both parties would find an
agreement acceptable). The bargainers determine the alternatives
acceptable to them and also identify their best alternative if a negotiated
settlement is not reached. Identifying a set of alternatives, including the
best one, helps individuals determine whether to continue the
negotiation or seek another course of action.
3. Identifying Interests: Negotiators act to satisfy their own interests,
which may include substantive, relationship, personal or organizational
ones. The person or group must assess the other party's interests and
then decide how to respond to those interests in their offers. Effective
negotiations call for satisfying interests by identifying and exploring a
range of possible positions on specific issues.
4. Making Trade-offs and Creating Joint Gains: Bargainers use tradeoffs
to satisfy their own and others' interests. Either position would meet
the interests of maintaining a certain standard of living. One way to
assess tradeoffs is
 Begin by identifying the best and worst possible outcomes.
 Next, specify what impact trade-offs will have on these outcomes.
 Finally, consider whether the changed outcomes will better meet the
parties' interest.
Negotiators need to overcome the idea that a fixed pie of outcomes exists,
avoid non-rational escalation of conflict, pay attention to others' cognitions
and avoid devaluating the others' concessions while overvaluing their own.

Negotiating Approaches
There are two major negotiating approaches;
1. Distributive Bargaining: Distributive bargaining is an approach in
which the goals of one party are in direct conflict with the goals of the
other party. Each party wants to maximize its share of the limited
resources. Distributive bargaining is a competitive or win-lose
approach to negotiations.
2. Integrative Negotiation: Under this approach to negotiation, the parties'
goals are not seen as mutually exclusive; the focus is on making it
possible for both sides to achieve their objectives. Integrative negotiation
focuses on the merits of the issues and is a win-win approach.
Third-Party Negotiations
When individuals and groups reach a stalemate and are unable to
resolve their differences through direct negotiations, especially when a
conflict is emotionally charged, they may turn to a third party to help them
find a solution. The third party may be a manager, a well-respected
colleague or someone whose formal role is to resolve conflicts.
1. Mediator: A mediator is neutral third party who facilitates a
negotiated solution by using reasoning and persuasion, suggesting
alternatives, etc. A mediator's role involves exerting high control over the process
but not the outcome. A mediator interviews the parties
separately, and then tries to help them reach a solution by bringing
those together or ferrying messages back and forth during labourmanagement
negotiations.
2. Arbitrator: An arbitrator is a third party with the authority to dictate
an agreement. An arbitrator's role involves exerting low control over the
process and high, control over the outcome. The arbitrator allows
each party to present facts or arguments and then decides on the
outcome and may even enforce it. Arbitration can be voluntary or
compulsory.
3. Consultant: A consultant is a skilled and impartial third party who
attempts to facilitate problem solving through communication and
analysis, aided by his or her knowledge of conflict management. This
approach has a longer term focus to build new and positive
perception and attitude between the conflicting parties.
4. Inquisitor: The role of an inquisitor involves high control over both
the process and the outcome of conflict resolution. An inquisitor asks
questions, directs the way evidence is presented, calls for
additional evidence and referees arguments, then decides the
outcome of the dispute and enforces his or her decision.
5. Avoider, delegator or impetus provider: A category of roles that
involve exerting little control over the process and the outcome. They are:
a. Avoider: tries to ignore the conflict and minimize its significance.
b. The delegator: asks another person to help in the negotiation.
c. Impetus provider: delegates the conflict to the parties along with
a threat that if they fail to resolve it, the manager will dictate a
solution they are sure to dislike.
Q.4 The environmental stressors have a great impact on work performance and adjustment of
the individual in an organization. Discuss the different categories of environmental stressors.
Ans. Stress
Stress is an exceedingly complex concept that does not lend itself to a
simple definition. It can best be understood in terms of the internal and
external conditions necessary for its arousal and the symptoms by which it
is identified. Its identifiable symptoms are both psychological and
physiological. Stress carries a negative connotation for some people, as
though it were something to be avoided. This is unfortunate, because
stress is a great asset in managing legitimate emergencies and achieving
peak performance. Some definitions of stress are given below:
According to J. C Quick and J.D Quick "Stress, or the stress response,
is the unconscious preparation to fight or flee a person experiences when
faced with any demand".
According to Mikhail A "Stress refers to a psychological and physiological
state that results when certain features of an individual's environment
challenge that person, creating an actual or perceived imbalance between
demand and capability to adjust that results in a non-specific response".

Environmental Stressors
Environmental and internal conditions that lie beyond an individual's
control are called environmental stressors. Such stressors can have a
considerable impact on work performance and adjustment. We can
organize environmental stressors into the following categories:
1. Task Demands: Task demands are factors related to a person's job.
They include the design of the individual's job, working conditions, and
the physical work layout. Changes and lack of control are two of the
most stressful demands people face at work. Change leads to
uncertainty, a lack of predictability in a person's daily tasks and
activities and may be caused by job insecurity related to difficult
economic times. Technology and technological innovation also create
change and uncertainty for many employees, requiring adjustments in
training, education and skill development.
Lack of control is a second major source of stress, especially in work
environments that are difficult and psychologically demanding. The
lack of control may be caused by inability to influence the timing of
tasks and activities, to select tools or methods for accomplishing the
work, to make decisions that influence work outcomes, or to exercise
direct action to affect the work outcomes.
2. Role Demands: The social-psychological demands of the work
environment may be every bit as stressful as task demands at work.
Role demands relate to pressures placed on a person as a function of
the particular role he or she plays in the organization. Role conflicts
create expectations that may be hard to reconcile or satisfy. Role
conflict results from inconsistent or incompatible expectations
communicated to a person. The conflict may be an inter-role, intra-role
or person-role conflict.
a. Inter-role Conflict: is caused by conflicting expectations related
to two separate roles, such as employee and parent. For
example, the employee with a major sales presentation on Monday
and a sick child at home is likely to experience inter-role conflict,
b. Intra-role Conflict: is caused by conflicting expectations related to a
single role, such as employee. For example, the manager who presses employees
for both very fast work and high-quality work
may be viewed at some point as creating a conflict for employees.
c. Person-role Conflict: Ethics violations are likely to cause personrole
conflicts. Employees expected to behave in ways that violate
personal values, beliefs or principles experience conflict.
The second major cause of role stress is role ambiguity. Role ambiguity
is created when role expectations are not clearly understood and the
employee is not sure what he or she is to do. Role ambiguity is the
confusion a person experiences related to the expectations of others.
Role ambiguity may be caused by not understanding what is expected,
not knowing how to do it, or not knowing the result of failure to do it.
3. Inter-personal Demands: are pressures created by other employees.
Lack of social support from colleagues and poor interpersonal
relationships can cause considerable stress, especially among
employees with a high social need. Abrasive personalities, sexual
harassment and the leadership style in the organization are
interpersonal demands for people at work.
a. The Abrasive Person: May be an able and talented employee, but
one who creates emotional waves that others at work must
accommodate.
b. Sexual Harassment: The vast majority of sexual harassment is
directed at women in the workplace, creating a stressful working
environment for the person being harassed, as well as for others.
c. Leadership Styles: Whether authoritarian or participative, create
stress for different personality types. Employees who feel secure
with firm, directive leadership may be anxious with an open,
participative style. Those comfortable with participative leadership
may feel restrained by a directive style.
4. Physical Demands: Non-work demands create stress for people,
which carry over into the work environment or vice versa. Workers
subject to family demands related to marriage, child rearing and
parental care may create role conflicts or overloads that are difficult to
manage. In addition to family demands, people have personal
demands related to non-work organizational commitments such as
religious and public service organizations. These demands become
more or less stressful, depending on their compatibility with the
person's work and family life and their capacity to provide alternative
satisfactions for the person.

Q.5 Given below are certain instances observed by the summer trainee – Ritu, while making an
observational study at GlobalGreen consultants. An organization dealing with recycling of
plastic products waste etc. She makes the following observation about two key people in the
organization.
1. Mr. Patnayak – He is a very friendly person and encourages his team members by giving
those recommendations and appreciations. This helps HR to decide about giving a bonus or
promotion to employees.
2. Mr. Dutta - He is an aggressive person. He frequently loses his temper. Ritu observes that he
frequently punishes the non-performers and also give them warnings regarding suspension etc.
Now explain what base of power does Mr. Patnayak and Mr. Dutta belongs to. Explain the type
of power they use often
[10]
Q.6 “Fashion4Now” is a famous and old magazine. The top management decides to start the e-
edition of the magazine.
They also decide the redefine the policies and culture of window to truth’
To start implementing, this change, they frequently call meetings of employees. They have also
formed groups at different levels to clarify doubts and explain the perspective of change.
Analyze the situation in the context of organizational change and elaborate why the
top management is following the discussed practices and what approach is most
evident in the context. [10]