Q. No.

3 (Word Limit: 200 Words)

a) Enumerate McClelland‘s Achievement Motivation Theory.

In the early 1940s, Abraham Maslow created his theory of needs . This
identified the basic needs that human beings have, in order of their
importance: physiological needs, safety needs, and the needs for
belonging, self-esteem and "self-actualization".
Later, David McClelland built on this work in his 1961 book, "The Achieving
Society." He identified three motivators that he believed we all have: a need
for achievement, a need for affiliation, and a need for power. People will
have different characteristics depending on their dominant motivator.
According to McClelland, these motivators are learned (which is why this
theory is sometimes called the Learned Needs Theory).

McClelland says that, regardless of our gender, culture, or age, we all have
three motivating drivers, and one of these will be our dominant motivating
driver. This dominant motivator is largely dependent on our culture and life
experiences.

c) Bring out a comparative analysis of ‘Theory x’ and ‘Theory y’.

The idea that a manager’s attitude has an impact on employee motivation was
originally proposed by Douglas McGregor, a management professor at the
Massachusetts Institute of Technology during the 1950s and 1960s. In his 1960
book, The Human Side of Enterprise, McGregor proposed two theories by which
managers perceive and address employee motivation. He referred to these opposing
motivational methods as Theory X and Theory Y management. Each assumes that
the manager’s role is to organize resources, including people, to best benefit the
company. However, beyond this commonality, the attitudes and assumptions they
embody are quite different.

Theory X

According to McGregor, Theory X management assumes the following:

 Work is inherently distasteful to most people, and they will attempt to avoid
work whenever possible.
 Most people are not ambitious, have little desire for responsibility, and prefer to
be directed.
 Most people have little aptitude for creativity in solving organizational problems.
 Motivation occurs only at the physiological and security levels of Maslow’s
hierarchy of needs.
 Most people are self-centered. As a result, they must be closely controlled and
often coerced to achieve organizational objectives.
  Most people resist change.
 Most people are gullible and unintelligent.

Essentially, Theory X assumes that the primary source of employee motivation is

monetary, with security as a strong second. Under Theory X, one can take a hard or
soft approach to getting results.

The hard approach to motivation relies on coercion, implicit threats,

micromanagement, and tight controls— essentially an environment of command and
control. The soft approach, however, is to be permissive and seek harmony in the
hopes that, in return, employees will cooperate when asked. However, neither of
these extremes is optimal. The hard approach results in hostility, purposely low
output, and extreme union demands. The soft approach results in a growing desire
for greater reward in exchange for diminished work output.

It might seem that the optimal approach to human resource management would lie
somewhere between these extremes. However, McGregor asserts that neither
approach is appropriate, since the basic assumptions of Theory X are incorrect.

Drawing on Maslow’s hierarchy of needs, McGregor argues that a need, once

satisfied, no longer motivates. The company uses monetary rewards and benefits to
satisfy employees’ lower-level needs. Once those needs have been satisfied, the
motivation disappears. Theory X management hinders the satisfaction of higher-level
needs because it doesn’t acknowledge that those needs are relevant in the
workplace. As a result, the only way that employees can attempt to meet higher-level
needs at work is to seek more compensation, so, predictably, they focus on
monetary rewards. While money may not be the most effective way to self-fulfillment,
it may be the only way available. People will use work to satisfy their lower needs
and seek to satisfy their higher needs during their leisure time. However, employees
can be most productive when their work goals align with their higher-level needs.

McGregor makes the point that a command-and-control environment is not effective

because it relies on lower needs for motivation, but in modern society those needs
are mostly satisfied and thus are no longer motivating. In this situation, one would
expect employees to dislike their work, avoid responsibility, have no interest in
organizational goals, resist change, etc.—creating, in effect, a self-fulfilling prophecy.
To McGregor, a steady supply of motivation seemed more likely to occur
under Theory Y management.

Theory Y

The higher-level needs of esteem and self-actualization are ongoing needs that, for
most people, are never completely satisfied. As such, it is these higher-level needs
through which employees can best be motivated.

In strong contrast to Theory X, Theory Y management makes the following

assumptions:

 Work can be as natural as play if the conditions are favorable.

  People will be self-directed and creative to meet their work and organizational
objectives if they are committed to them.
 People will be committed to their quality and productivity objectives if rewards
are in place that address higher needs such as self-fulfillment.
 The capacity for creativity spreads throughout organizations.
 Most people can handle responsibility because creativity and ingenuity are
common in the population.
 Under these conditions, people will seek responsibility.

Under these assumptions, there is an opportunity to align personal goals with

organizational goals by using the employee’s own need for fulfillment as the
motivator. McGregor stressed that Theory Y management does not imply a soft
approach.

McGregor recognized that some people may not have reached the level of maturity
assumed by Theory Y and may initially need tighter controls that can be relaxed as
the employee develops.

If Theory Y holds true, an organization can apply the following principles of scientific
management to improve employee motivation:

 Decentralization and delegation: If firms decentralize control and reduce the

number of levels of management, managers will have more subordinates and
consequently need to delegate some responsibility and decision making to
them.
 Job enlargement: Broadening the scope of an employee’s job adds variety
and opportunities to satisfy ego needs.
 Participative management: Consulting employees in the decision-making
process taps their creative capacity and provides them with some control over
their work environment.
 Performance appraisals: Having the employee set objectives and participate
in the process of self-evaluation increases engagement and dedication.

If properly implemented, such an environment can increase and continually

fuel motivation as employees work to satisfy their higher-level personal needs
through their jobs.

d) What are the different types of Groups?

TYPES OF WORK GROUPS

Whatever may be the causes for which groups are formed, the formation of groups
has become inevitable phenomenon in every organisation. There exists different types
of groups in organisations. Each group plays crucial role in achieving organisational
effectiveness. There are different ways through which we can classify the groups.
One broad way to classify the group is on the basis their formation. Accordingly, the
group can be formal group or informal group.

12.5.1 Formal Work Groups

Formal work groups are formed by the organisations. These groups are formed in
order to help the organisation to achieve its specific goals. The goals of formal work
group are determined according to the needs of the organisation. For example,
purchase committee, quality control group, disciplinary action committee are the
formal groups constituted by an organisation. These groups are established to
accomplish certain organisational goals such as increasing product quality, safety,
discipline, etc. in an organisation.
Types of Formal Work Groups
There are different types of formal groups in an organisation. Four important kinds of
formal groups are command groups, the committees, teams, and self-managed work
teams. Let us learn them in detail.
Command Group : It is the collection of employees who report to the same
supervisor. Command groups are based on the basic reporting relationship in
organisations. The existence of formal groups is represented on organisational charts
as departments (such as finance, personnel, marketing, sales, or accounting).
Command groups help an organisation to accomplish variety of tasks. They have
tremendous impact upon the extent to which an organisation is able to achieve its
goals. The leaders of the command group play an important role in determining the
effectiveness of these groups.
The Committees : It is the collection of people who are brought together by the
organisation to accomplish a specific goal. Once the goal is achieved, the organisation
disbands the committees. In case such committees are dealing with long term
problems, in that case they may not be disbanded but the members in the committees
can be changed or rotated on the basis of seniority and other criteria. These kinds of
committees are known as standing committees.

The Team : It is a formal work group. People work in a group does not mean that
they work in a team. A team is formed by the organisation for some specific purpose.
In a team, there is a high level of interaction among its members. The members of the
team work together very intensely to achieve a common goal. In course of working
together, the member of the team learn the abilities and experiences of their members
to accomplish things that could not be achieved by individuals working separately or
by any other kinds of work groups.
Self-Managed Work Teams : Self-managed work teams are little different from
normal teams . The members of self-managed work team are responsible for ensuring
that the team accomplishes its goals. Leader of this team is identified by its members.
The performance of leadership tasks is assigned to individual group members. The
team is empowered to discipline its members who are not performing at an adequate
level. There is coordinating efforts across group members, and even hiring and firing
for and within the team is done by the team itself. In the recent years self-managed
teams are gaining popularity and they have created a dramatic impact on
organisations as well as on their members.
12.5.2 Informal Work Groups
Informal work groups emerge naturally in organisations. It is just like the shadow of
the formal organisation. It is because organisational members perceive that it is
difficult for their organisations to formally fulfill some of the bare needs and feel that
membership in a group can help them to achieve their goals and meet their needs. For
example, when a group of five factory workers who go for a picnic, movie, or booz
together to satisfy their common need for affiliation and friendship this is the case of
an informal group. Even sometimes, some employees form informal group.due to
their ideological similarity.
Types of Informal Work Groups
Informal groups can be broadly divided into two types They are : (i) friendship
groups; and (ii) interest groups.

The Team : It is a formal work group. People work in a group does not mean that
they work in a team. A team is formed by the organisation for some specific purpose.
In a team, there is a high level of interaction among its members. The members of the
team work together very intensely to achieve a common goal. In course of working
together, the member of the team learn the abilities and experiences of their members
to accomplish things that could not be achieved by individuals working separately or
by any other kinds of work groups.
Self-Managed Work Teams : Self-managed work teams are little different from
normal teams . The members of self-managed work team are responsible for ensuring
that the team accomplishes its goals. Leader of this team is identified by its members.
The performance of leadership tasks is assigned to individual group members. The
team is empowered to discipline its members who are not performing at an adequate
level. There is coordinating efforts across group members, and even hiring and firing
for and within the team is done by the team itself. In the recent years self-managed
teams are gaining popularity and they have created a dramatic impact on
organisations as well as on their members.
12.5.2 Informal Work Groups
Informal work groups emerge naturally in organisations. It is just like the shadow of
the formal organisation. It is because organisational members perceive that it is
difficult for their organisations to formally fulfill some of the bare needs and feel that
membership in a group can help them to achieve their goals and meet their needs. For
example, when a group of five factory workers who go for a picnic, movie, or booz
together to satisfy their common need for affiliation and friendship this is the case of
an informal group. Even sometimes, some employees form informal group.due to
their ideological similarity.
Types of Informal Work Groups
Informal groups can be broadly divided into two types They are : (i) friendship
groups; and (ii) interest groups.
18.4 RESISTANCE TO CHANGE
Resistance to change is an attitude or behaviour that shows unwillingness to approve
a particular change. This resistance is to be overcome for successful change.
Sometimes resistance to change serves as a feedback to reconsider the proposed
change. Thus resistance to change can also be used for the benefit of the organisation.
The essence of constructive approach to resistance is to consider objections raised and
make suitable amendments and educate the employees about the proposed change.

esistance can be overt, implicit, immediate and differed. When it is overt and
immediate, the management can take immediate remedial steps to deal with such
resistance. Implicit resistance may result in loss of loyalty, loss of motivation,
increased mistakes, increased absenteeism etc. In course of time, similarly differed
resistance creates problem to the management particularly when substantial amounts
have already been invested in carrying out the change. Resistance to change may be
introduced by the organisation, the individual or both.
We shall now examine the different sources of resistance either from organisation or
from individuals.
Organisational Resistance
The following six major sources of organisational resistance have been identified.
i) Structural Inertia: Every organisation has built in mechanisms or systems to
maintain stability. It may be training and other socialised techniques or formulation
procedures. The people are recruited; they are trained and they are shaped to behave
in certain ways. When change is proposed in any of these systems and procedures, the
existing employees may not accept it.
making authority may threat individuals‟ power relationship with others and leads to
resentment.
vi) Resource Allocation: The groups in the organisation, which control resources
often consider change as a threat.
Individual Resistance
The reasons for resistance from individuals can be traced to basic human
characteristics such as perceptions, personalities and needs. The following are the six
reasons for individual resistance to change.

i) Habit : The human beings prefer to carry out their daily jobs in the same way.
Introduction of any new steps in carrying out the job makes them feel that the job
has
become difficult. So they resist this change.
ii) Security : People with high need of job security are likely to resist the change
which is likely to affect their feelings of safety. Introduction of new technological
changes in an organisation may make the employees feel that their jobs are in
jeopardy.
iii) Economic Factors : Employees may feel that the proposed changes may
reduce their monthly pay. Hence they oppose such changes.
iv) Fear of Unknown : When the change is proposed, a known situation is
sought to be replaced by an ambiguous and uncertain situation, which may not be
liked by the employees. As a result, they develop a negative attitude towards the
 proposed change.
v) Lack of Awareness : People may not be aware of the benefits of the proposed
changes and consequently they resist those changes due to ignorance.
vi) Social Factors : Individual employee may resist changes either because of the
influence of the group or the union to which they belong. They may feel that if
those
changes are accepted, they may be ridiculed by their colleagues or the union
officials

When there is a resistance to change, the management has to take appropriate steps to
overcome the resistance. The following six ways have been suggested for dealing
with the resistance to the change:
i) Education and Communication: The first approach to overcome resistance
is through education and communication. Under this approach, the employees are
educated about the change before it is implemented. This helps them to understand
the logic of the change and its benefits. This method is the best method when
resistance is based on inaccurate or incomplete information.
ii) Participation and Involvement: Resistance to change can be reduced
significantly by inviting the concerned employees to participate in its decision
making process. They feel that it is their own proposal and consequently they stand
by its implementation.
iii) Facilitation and Support: This involves providing both emotional, training
and financial assistance to employees experiencing the hardships of change.
iv) Negotiation and Incentives: This approach Provides for negotiation with
concerned employees and offers incentives to make them agree to the change.
v) Manipulation and Co-optation: This method consists of attempts to
influence the employees and more especially, the opinion makers, through some
special benefits or providing more attractive information or by withholding
undesirable information.
vi) Coercion: This is the application of direct threats or force upon the resisters.
The threats may consist of transfer, loss of promotion, retrenchment etc.

Finally we consider the factors influencing successful management of organisational

change. The following six factors are to be considered in this context:
i) Environmental Influences: Environment is an important factor in bringing
about organisational change. The demands of the environment have to be considered
in finalising the change. The environmental complexities increase as the area of the
organisation‟s operations increase – local, regional, national and international. Further
acceptance of change varies widely from place to place and from culture to culture.
Moreover, the techniques to be adopted for managing change also differ from country
to country.
ii) Whole View of the Organisation : It is always necessary that managers
should take whole view of organisation while proposing change. A partial view can
affect the change effort adversely.
 ii) Support of Top Management: The success of any change effort depends to a
large extent on the support of top management. Complaints may be made against
the
change proposals of local/regional managers to the top management. Therefore,
unless the top management is informed in advance and their support is ensured,
problems may arise and the local/regional management may fail in implementing
the
change.
iv) Employee’s Participation: Employees or their representatives may be invited
to participate in discussions relating to the proposed change. If they are given a
role in
designing the change, they are likely to cooperate with the management in
implementing the change.
v) Open Communication: Open communication between management and
employees is an important factor in managing the change. Employees are likely to
have certain misapprehensions about the change and unless correct information is
provided through open communication system, the change efforts are likely to
fail.
v) Incentives and Rewards: Employees who are responsible for the successful
implementation of the change should be recognized and appropriately rewarded.
Sometimes people who resist in the beginning or oppose throughout are given
more
importance than employees who support the change right from the beginning.
Employees who support the change actively and help others adjust to changes
deserve
special recognition by way of news release; special consideration in performance
appraisal; an increment in pay or a promotion etc. Look at Table 18.3 which
shows
he factors and impact of managing.

The informal channel of communication, also known as grapevine, is the result of the
operation of social forces at work place. The term grapevine arose during the days of
U.S. Civil War. At that time, intelligence telephone lines were strung loosely from
tree to tree in the manner of a grapevine, and the message there on was often
distorted: hence any rumour was said to be from the grapevine. While formal
communication exists to meet the utilitarian needs of the organisation, informal
communication is the method by which people carry on social, non-programmed
activities within the formal boundaries of the system. It, thus, exists outside the
official network, though continuously interacting with it. This informal channel is
generally multiple in natures: same person having social relationships with a number
of people working in the same organisation.
This channel also satisfies the communication needs of the various persons in the
organisation, more particularly those persons who mix up with others freely and rely
upon informal relationships. Informal communication is thus a need-fulfillment
device generated when it is found that the existing formal communication is
inadequate or insufficient. The requirement of speedier communication creates
conditions for informal communication, which is supplement to the formal one.
Chester Barnard opines that communication function of the executives help the
maintenance of informal executive organisation. The functions of informal executive
organisation are the communication of intangible facts, suggestions that cannot pass
through formal channels without the requirement for decisions, without dissipating
dignity and objective authority. L.M. Prasad found in his study that between 50 and
100 percent subordinates communicating unfavourable work performance, problems
relating to work, unfavourable reactions to various organisational practices, used to
communicate through informal channel. The major reasons for using informal
channel for such communication were: it being more convenient and such subject
matter of upward communication did not require formal channel.
In single strand network, the individual communicates with other individuals‟ through
intervening persons. In the gossip network, the individual communicates nonselectively. In
probability network, the individual communicates randomly with other
individuals according to the law of probability. In the cluster network, the individual
communicates with only those individuals whom he trusts. Out of these informal
networks, the cluster is most popular.
Sometimes word rumour is used as a synonym for the whole informal
communication, but there is a difference between the two. Rumour is grapevine
information that is communicated without secure standard of evidence. It is the
injudicious and untrue part of the grapevine. Since, in most cases, it is incorrect
information, it is presumed to be the most undesirable feature of grapevine. Rumour
is a product of interest and ambiguity in a situation. Since perception of interest and
ambiguity differs among individuals, rumour tends to change from person to person.
Depending upon the interest, each person subtracts or adds something to the original
message through the process of elaboration and assimilation.
Informal communication, on the other hand, has certain basic limitations. It is less
orderly and less static also. Sometimes, messages communicated through the informal
channel are so erratic that any action based on these may lead to a difficult situation
in the organisation. In this case, the irresponsibility of the persons communicating
through the informal channel is the most important factor. Since origin and direction
of the flow of information is hard to pinpoint, it is difficult to assign responsibility for
false information or morale lowering rumours. Moreover, as each person conveying
33
the message may add, subtract or change the original message may add, subtract or change
the original message according to his
motive, informal communication problems multiply. There is a chance that by the
time a communication completes a complex journey, it may be completely distorted.