1st Internal Exam 2018-19

BBA - 3rd YEAR

Subject : Organization Behaviour
Set-A
Time: 2 Hrs. M.M. : 40
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Attempt All Questions (2x5)
1. Define Organization.
Ans: An organization is an official group of people, for example a political party, a business,
a charity, or a club.
2. Write the name of Key Elements in OB
Ans: These key forces are-
a. People.
b. Structure.
c. Technology.
d. Environment.
There is an interaction of people, structure, and technology and these elements are
influenced by the environment.
3. What is group?
Ans: A group of people or things is a number of people or things which are together in one
place at one time.
4. What is behaviour?
Ans: A response of an individual or group to an action, environment, person, or stimulus.
5. What is team?
Ans: A team becomes more than just a collection of people when a strong sense of mutual
commitment creates synergy, thus generating performance greater than the sum of the
performance of its individual members.
Attempt All Questions (5x2)
1. Explain the nature and role of OB. What is its limitation?
Ans: Organizational behaviour has emerged as a separate field of study. The nature it has
acquired is identified as follows :
i. 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.
ii. 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.
iii. 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.
iv. 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 accepted 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.
v. 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 actualize these potentials if they are given
proper conditions and environment. Environment affects performance or workers
working in an organization.
vi. 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.
Role of Organizational behavior
Organizational behavior helps the managers in the following areas:
1. Understanding human behavior: Organizational behavior provides a way for
understanding human behavior in the organization. For shaping human behavior in
definite direction for achieving certain predetermined objectives, managers must know
how the people in the organization behave. Organizational behavior provides way for
understanding human behavior in all the directions in which human beings interact.
Group level and intergroup level.
  Individual level: The behavior of human beings as a social man is the first issue
in behavioral science. It provides for analysis why and how an employee acts in a
particular way. As will be seen later, human behavior is a complex phenomenon
and is affected by a large number of factors-psychological, social, cultural and
others. Organizational behavior integrates these factors to provide simplicity in
understanding human behavior.
 Interpersonal level: human behavior can be understood at the level of
interpersonal interaction. Such interpersonal interaction is normally in when one
focuses on the influence of one’s peer and its effect in working relationship, or
examines the superior subordinate relationship; it is obvious that the two-person
relationship is inevitable in the organization. Organizational behavior provides
means for understanding this interpersonal relationship in the organization.
Analysis of reciprocal relationship, role analysis, and transactional analysis are
some of the common methods which provide such understanding.
 Group level: Though people interpret in any way at their individual level, they
are often modified by group pressure which, thus, becomes a force in shaping
human behavior. Thus, individuals should be studied in group also. Research in
group dynamics has contributed vitally to organizational behavior and shows how
a group behavior. Thus, individuals should be studied in group understanding
group behavior which is very important for organizational is build its
organizational morale and productivity.
2. Controlling and Directing human behavior: After understanding the mechanism of
human behavior, managers are required to control and direct the behavior so that it
conforms to standards required for achieving organizational objectives. Thus,
managers are required to control and direct the behavior at all levels of individual
interaction. For this organizational behavior helps managers in many areas: use of
power and sanction, leadership, communication, and building organization climate
conducive for better interaction.
3. Organizational Adaptation: Organizations as dynamic entities are characters by
pervasive change. In this age of environment variability, the real job of managers is to
provide continuity in organizations changes by making suitable internal arrangements.
However, such organizational arrangements are mostly resisted by the internal people.
Thus, managers have to face without adversely affecting the need for satisfaction of
organizational people it is also the essence of managing change. Management of
change is seen as a self-perpetrating ever-evolving phenomenon.
Limitations of Organizational Behavior:
1. Behavioral bias: It further causes dependence, dis-contentment, indiscipline, and
irresponsibility.
2. Law of diminishing returns: It says that beyond a certain point, there is a decline in
output even after each additional good or positive factor.
 3. Unethical practices and manipulation of people: Knowledge of motivation and
communication acquired can be used to exploit subordinates in an Organization by the
manipulative managers.

2. Define team building and its importance?

Ans: Team building is a collective term for various types of activities used to enhance social
relations and define roles within teams, often involving collaborative tasks. It is distinct
from team training, which is designed by a combine of business managers, learning and
development/OD (Internal or external) and an HR Business Partner (if the role exists) to
improve the efficiency, rather than interpersonal relations.
Importance of team building-
Work Efficiency: Teamwork enables you to accomplish tasks faster and more efficiently
than tackling projects individually. Cooperating together on various tasks reduces
workloads for all employees by enabling them to share responsibilities or ideas.
Teamwork also reduces the work pressure on every worker, which allows him to be
thorough in the completion of the assigned roles. In sharing ideas or responsibilities, every
employee should have a role that suits his specialization. You should also consider
employees' levels of interest in the project at hand, which positively influences the
efficiency or speed of their output in accomplishing the task.
Improved Employee Relations: Teamwork is important in an organization because it
provides employees with an opportunity to bond with one another, which improves
relations among them. Workers who constitute a team working on a project often feel
valued upon the successful completion of such tasks. A situation in which all of them find
a chance to contribute towards the tasks improves relations within the team and enhances
their respect for each other. Improved employee relations also result from the fact that
teamwork enhances cohesion among members, thanks to increased trust among them.
Increased Accountability: Teamwork increases the accountability of every member of
the team, especially when working under people who command a lot of respect within the
business. Team members do not want to let each other down and hence do their best to
contribute to the successes of their teams. In contrast to working solo on a project, peer
pressure is usually high within teams such that cases of low morale are less likely to
impact individuals. As a business owner, you would benefit from increased productivity
through efficient team projects, which may be completed well ahead of the deadline.
Learning Opportunities: Cooperating on a project is an opportunity for new workers to
learn from more experienced employees. Teams often consist of members who differ from
one another in terms of skills or talents. Working together is a great opportunity to acquire
skills that an employee never had beforehand. Unlike working alone on a project,
teamwork affords people the opportunity to challenge the ideas of each other and come up
with a compromise solution that contributes to the successful completion of the task.
 Attempt all Questions (10x2)
1. What are the different theories of group formation? Do they explain group formation
fully? How?
Ans: Theories of Group Formation: Though a number of theories have been propounded by
various experts to explain the dynamics of group formation, the most important ones are
discussed hereunder:
Homan's Theory: Homan's theory of group formation is based on three elements,
namely, activities, interaction and sentiments. According to Homan, these three
elements are directly related to each other. The required activities are the assigned tasks to
people to work. The required interaction takes place when any person's activity takes place
or is influenced by the activity of any other person. As regards sentiments, these are the
feelings or attitudes of a person towards others, i.e., his likes or dislikes, approval or
disapproval.
This theory explains the basic idea behind forming groups. Scott observes that interaction
is not only helps in attaining goals but also to solve problems, facilitate co-ordination,
reduce tension and achieve a balance. Participants interacting in this manner tend to form
powerful groups.
The following imaginary example will help understand Homan's theory in a better
manner: Suppose, the students of Business Administration are in queue to deposit their
examination fees in the State Bank of India. All of them have a common purpose, that is,
to deposit fees when there turn comes. They see, a student from Mass Communication
Department comes and breaks the queue to go ahead. The student whose turn was
dislocated by the queue breaker tells the queue breaker not to do so and pushes him out.
This influences all other students standing in the queue to follow the student whose turn
was dislocated, in telling him not to break the queue. In this example, they can see
activities and interaction taking place among the students. When the students actually
disapprove the queue breaker in doing so, it reflects their sentiments towards each other.
In sum and substances, all these activities took place because of the sentiments or feelings
of the students/people.
The key element is interaction because of which they develop common sentiments for one
another as shown in Fig.
 Exchange Theory of Reward and Cost Outcome

Thaibaunt and Kelly put forward their theory of group formation, stating the outcome of
interaction as the basis of group formation. According to them, the outcome of interaction
should result in attraction and affiliation, also called rewards, among the persons of a
group. In case, the interaction incurs anxiety or frustration or embarrassment or fatigue to
the members of a group, it is, then, called cost for the members rather than a reward. In
exchange theory, affiliation, interaction and common attitude play an important role.
Balance Theory: This theory was propounded by Newcomb. According to this theory,
groups are formed on the basis of attractions of people towards each other having similar
attitudes and values. Rao and Barman form relationship because of their common attitudes
and values. They try to maintain a symmetrical relationship between the attraction and
common attitudes and values. As and when, their relationship becomes unbalanced, both
try to restore balance. However, if balance cannot be restored, then their relationship gets
dissolved. Thus, one will appreciate that both attraction and interaction play a significant
role in balance theory.
1. Short notes on:
(A) Neo Classical Theory

Ans: Neoclassical theorists recognized the importance of individual or group behaviour and
emphasized human relations. Based on the Hawthorne experiments, the neoclassical approach
emphasized social or human relationships among the operators, researchers and supervisors
(Roethlisberger and Dickson, 1943). It was argued that these considerations were more
consequential in determining productivity than mere changes in working conditions. Productivity
increases were achieved as a result of high morale, which was influenced by the amount of
individual, personal and intimate attention workers received.
Principles of the neoclassical approach

The classical approach stressed the formal organization. It was mechanistic and ignored major
aspects of human nature. In contrast, the neoclassical approach introduced an informal
organization structure and emphasized the following principles:

The individual An individual is not a mechanical tool but a distinct social being, with
aspirations beyond mere fulfilment of a few economic and security works. Individuals differ
from each other in pursuing these desires. Thus, an individual should be recognized as
interacting with social and economic factors.

The work group The neoclassical approach highlighted the social facets of work groups or
informal organizations that operate within a formal organization. The concept of 'group' and its
synergistic benefits were considered important.

Participative management Participative management or decision making permits workers to

participate in the decision making process. This was a new form of management to ensure
increases in productivity.

(B) Modern Theory.

Ans: The Modern Theory is the integration of valuable concepts of the classical models with
the social and behavioral sciences. This theory posits that an organization is a system that
changes with the change in its environment, both internal and external. There are several
features of the modern theory that make it distinct from other sets of organizational
theories, these are:
1. The modern theory considers the organization as an open system. This means an
organization consistently interacts with its environment, so as to sustain and grow in
the market. Since, the organization adopts the open system several elements such as
input, transformation, process, output, feedback and environment exists. Thus, this
theory differs from the classical theory where the organization is considered as a
closed system.
2. Since the organization is treated as an open system, whose survival and growth is
determined by the changes in the environment, the organization is said to be adaptive
in nature, which adjusts itself to the changing environment.
3. The modern theory considers the organization as a system which is dynamic.
4. The modern theory is probabilistic and not deterministic in nature. A deterministic
model is one whose results are predetermined and whereas the results of the
probabilistic models are uncertain and depends on the chance of occurrence.
5. This theory encompasses multilevel and multidimensional aspects of the
organization. This means it covers both the micro and macro environment of the
 organization. The macro environment is external to the organization, while the micro
environment is internal to the organization.
6. The modern theory is multi-variable, which means it considers multiple variables
simultaneously. This shows that cause and effect are not simple phenomena. Instead,
the event can be caused as a result of several variables which could either be
interrelated or interdependent.
The scientists from different fields have made major contributions to the modern theory.
They emphasized on the importance of communication and integration of individual and
organizational interest as prerequisites for the smooth functioning of the organization.