2019

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? To what extend

sound organisation helps in effective management?

-> 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 possi-
ble 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 objec-
tives 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.

7 benefits of a sound organization for managing the business effectively:

1. Facilitates administration:

Sound organisation facilitates the achievement of the objectives of an enterprise

by providing a framework within which the functions of coordination and control
can be per formed effectively. It provides a system of authority and a network for
effective communications. It is the means by which common men can do
uncommon things. Organisation is a network of decision communication centres in
which individual efforts can be coordinated towards group goals.

It integrates the various jobs into an operating system to provide for the
accomplishment of the firm’s objectives. Thus, a properly designed and balanced
organization structure facilitates both management and operation of the
enterprise. Inadequate organisation may not only discourage but actually preclude
effective administration.

2. Encourages growth and diversification:

It is sound organization practices that have enabled enterprises to grow and

expand to giant sizes. An organization structure is the framework within which an
enterprise grows. Systematic division of work and consistent delegation of
authority facilitate taking up of new activities, and meeting new demands. A sound
structure provides the necessary flexibility for growth without losing control over
the various activities. Balanced emphasis can be put on different activities.

3. Optimum use of new technology:

Optimum use of technological improvements can be made through a sound
structure manned with competent employees. In addition, a sound organisation
permits optimum utilization of human resources. It permits humane use of human
beings by avoiding duplication of work and overlapping of efforts. Sound
organisation ensures that every individual is placed on the job for which he is best
suited.

4. Stimulates innovation and creativity:

A well-designed organization stimulates creative thinking and initiative on the

part of employees. It provides for effective management of change and responds
favorably to changes in the environment. By providing well-defined areas of work
and clear-cut responsibility, it provides recognition for the professional and the
specialist in terms of their achievements.

5. Encourages good human relations:

In a sound organisation every individual is assigned the job for which he is best
suited. The assignment of right jobs to right persons improves job satisfaction and
interpersonal relations. Well-defined jobs and clear lines of authority and respon-
sibility help to establish cordial relations between management and workers.

6. Ensures continuity of enterprise:

Sound organisation helps in the continuity of management by providing scope for

the training and development of future management. An effective organisation
provides avenues for development and promotion through extensive delegation
and decentralization of authority.

7. Fosters coordination:

Sound organisation facilitates order and cohesiveness in the enterprise. Division of

labour, better utilization of technology and human talent, etc. help to improve the
efficiency and quality of work. By providing clear channels of communication
among the members of the organisation, it facilitates coordination.

Thus, sound organisation is the backbone or foundation of effective management.

“Organizing is the process by which a manager brings order out of chaos, removes
conflicts between people over work or responsibility, and establishes an
environment suitable for teamwork.’

2(a) What do you mean by delegation of Authority? As a manger, how will

you determine what authority and to what extend it should be delegated?
-> If all organisational activities, strategic and routine, could be managed by the
top executives, the need for formal organisation structure with functional
departments, staffed with people of different calibre, carrying out different
activities would not have arisen. Since it is not possible, because of physical and
mental limitations, for one person to perform all activities with respect to all
functional areas, it becomes necessary that he gives part of his work load to
subordinates along with commensurate authority to carry out the assigned task.

Every type of task cannot be assigned to subordinates. Managers have to choose

between tasks that can be performed by subordinates and those which have to be
carried out by them only. Thus, the entire workload is divided into units; part is
assigned to subordinates with authority to carry out the assigned task. This
division of work and its assignment to people down the scalar chain is called
delegation. “Delegation is a process the manager uses in distributing work to the
subordinates.”
Management is the art of getting things done through others which is possible if
they delegate the authority and responsibility. Delegation is an important skill that
manager must have to effectively manage his organisation. Allen puts it very aptly,
“How well a manager delegates determines how well he can manage.” Delegation
creates healthy atmosphere in the organisation. Companies identify capabilities of
managers by judging their skills in how effectively they get the work done by the
process of delegation.
Principles of Delegation:
The following principles that serve as guidelines for effective delegation of
authority are given below:
1. Functional Clarity:
The functions to be performed, the methods of operations and the results expected
must be clearly defined. The authority delegated must be adequate to ensure that
these functions are well performed.

2. Matching Authority with Responsibility:

Generally authority and responsibility are highly interconnected. So, authority
should be delegated as to be equal to responsibility, consigned to the worker.
Authority should be adequate and should not only match the duties to be
performed but also the personal capabilities of the subordinate.

3. Unity of Command:
The “Unity of Command” means a subordinate should be commanded by one
superior only. In this connection a subordinate should be assigned duties and
delegated authority by only one superior and he should be accountable for the
performance of the assigned duties and exercise of the delegated authority.
In other words, a subordinate should be responsible to only one superior who is
delegating the authority to the subordinate.

4. Principle of Communication:
A misunderstood responsibility can be very dangerous. A general authority can be
easily misused. Accordingly, both the responsibility and authority must be clearly
specified, openly communication must be continuously kept open for issuing
directions as well as for receiving feedback.

5. Responsibility not Delegatable:

Authority can be delegated, but responsibility cannot be delegated. A manager
cannot turn a blind eye to how the assigned duties are performed, and how the
delegated authority is exercised. The ultimate responsibility for the performance
of duties and exercise of delegated authority remains with him.

6. Limits to Authority to be well defined:

A manager cannot properly delegate authority unless he fully knows what his own
authority is. To avoid confusion in this respect, there should be written manuals
and orders to indicate the limits of authority and area of operations of each
manager.

7. Principle of Management by Exception:

Management should delegate the authority and responsibility for routing
operations and decision making to subordinates, but must retain such tasks for
themselves for which they alone are uniquely qualified. On the other hand, the
subordinates must make decisions and take actions wherever they can and should
only refer matters of such nature to their superiors, which are unique, and outside
their domain of authority.

This practice saves valuable time of top management, which can be utilised, for
more important policy matters. Also by trying to solve most of the problems by
themselves, the subordinates prepare themselves for higher challenges and
responsibilities.

Delegation can take three forms:

1. Top to Bottom Delegation:

The process of delegation where superiors delegate workload to subordinates is
top to bottom delegation.
2. Bottom to Top Delegation:
This form of delegation recognises the importance of informal groups in the
formal organisation structures. The force of attraction of group members is so
strong that if they have to obey the superior or group members, they may choose
the latter. Managers have to be careful in issuing orders/directions to
subordinates to carry out the delegated tasks.
They should motivate subordinates as members of the group and not individual
members. According to Allen, “to the extent that the manager convinces the
members of the group that their needs, his own, and those of the company
coincide, he can motivate them to produce according to the standards he sets.”
3. Lateral Delegation:
When managers delegate authority to subordinates in the hierarchy, subordinates
further delegate the tasks informally to people at the same level in other units. For
example, if general manager of sales department asks sales manager to compile
the figures of sales and sales personnel for the month of January, the sales
manager will seek the assistance of finance manager and personnel manager.
Thus, authority and responsibility delegated to sales manager is shared by him
with managers of other departments working at the same level. This is a form of
lateral delegation. Peer groups in this case come together and carry out the task as
a team.

If all organisational activities, strategic and routine, could be managed by the top
executives, the need for formal organisation structure with functional
departments, staffed with people of different calibre, carrying out different
activities would not have arisen. Since it is not possible, because of physical and
mental limitations, for one person to perform all activities with respect to all
functional areas, it becomes necessary that he gives part of his work load to
subordinates along with commensurate authority to carry out the assigned task.

Every type of task cannot be assigned to subordinates. Managers have to choose

between tasks that can be performed by subordinates and those which have to be
carried out by them only. Thus, the entire workload is divided into units; part is
assigned to subordinates with authority to carry out the assigned task. This
division of work and its assignment to people down the scalar chain is called
delegation. “Delegation is a process the manager uses in distributing work to the
subordinates.”
Management is the art of getting things done through others which is possible if
they delegate the authority and responsibility. Delegation is an important skill that
manager must have to effectively manage his organisation. Allen puts it very aptly,
“How well a manager delegates determines how well he can manage.” Delegation
creates healthy atmosphere in the organisation. Companies identify capabilities of
managers by judging their skills in how effectively they get the work done by the
process of delegation.

Delegation has the following features:

1. Delegation is a process – Managers delegate tasks to subordinates in a
sequential order of steps.
2. On-going process – Delegation is a continuous process. Managers continue to
delegate tasks and get them delegated by their superiors to achieve the
organisational goals.
3. It is an art, not science – When delegator delegates to subordinates, it does not
necessarily mean that subordinates will perform those tasks well. There is no
cause and effect relationship between the task assigned and their actual
performance. Delegation is, thus, not a science. It is the art of how and what
manager delegates to subordinates.
4. Delegation of authority and not accountability – Managers can only delegate
work and authority to perform that work to subordinates. Delegation does not
mean that managers are not accountable to their superiors for the task assigned to
subordinates. They remain accountable for the tasks assigned to subordinates and
are answerable to their superiors for its performance.
5. Necessary organisational activity – Managers cannot avoid delegation. They
cannot perform all the tasks themselves. They have to master the art of delegation
that is, how to delegate and what to delegate. Corporate performance is judged by
how good the managers are in getting the work done through others by the
process of delegation.
6. It has different forms – Delegation can take different forms. It can be downward,
upward or lateral.

The process of delegation involves the following steps:

1. Determine the Goals:
The first step of delegation is to establish the goal or objective of the position/post
so that the person determines the need for delegation. If delegation is initiated in
the sales department, the objective should be made clear; sales promotion or sales
retention.
2. Define Responsibility:
Once requirement of the job is defined, responsibility of different individuals is
determined in terms of tasks assigned to them. This helps them to know their
bosses and subordinates to whom they can issue instructions.
3. Define Authority:
The job having been assigned, authority is given so that people can discharge
responsibilities related to that job.
4. Motivate Subordinates:
The duty of manager does not end by delegating authority and responsibilities to
subordinates. He makes sure that subordinates willingly contribute to the job
assigned so that organisational goals can be optimally achieved. Managers
motivate the subordinates to work with zeal and enthusiasm. They use financial
and non-financial (participative decision-making, recognition etc.) incentives to
motivate the subordinates.
5. Hold Accountability:
Whatever the nature and extent of delegation, managers continuously monitor the
activities of subordinates to review their progress and provide guidance,
whenever necessary. They hold them accountable for the work assigned but
remain ultimately accountable to their superiors for successful completion of the
task and its coordination with the overall organisational work.
6. Train Subordinates:
Despite the authority commensurate with responsibility, subordinates may not be
able to effectively carry out the delegated tasks. Managers, therefore, organise
training programmes to enhance their knowledge on the tasks assigned.
7. Establish Control:
Specific standards of performance are framed so that subordinates can assess
their performance against standards, control their activities and coordinate them
with goals of the organisation.

Factors:
1. Willingness of Subordinates:
The degree of delegation will depend upon the willingness of subordinates to
accept responsibility.

If the subordinates are shy of bearing greater responsibility then executive will not
be able to delegate authority.

The willingness of subordinates to accept additional responsibility is essential for

the process of delegation.

2. Manager’s Attitude:

The delegation not only depends upon the willingness of subordinates to share
additional work but will also be determined by the attitude of the manager. The
manager should be ready to delegate and the subordinate should be willing to
accept it.

If the attitude of the managers to concentrate all powers in his hands only then he
will not delegate his authority an autocratic manager will not like to share his
powers with others while a democrat manager will encourage his subordinates to
work independently. The attitude of the manager is an important factor in
determining the delegation of authority.

3. Desire to Dominate:

Sometimes executives are in the habit of dominating others. They will not like to
delegate authority to others. They will keep every important work with them and
take even minor decisions themselves. Such executives will not encourage
subordinates by giving them authority to work independently. The desire to
dominate resists executives from delegation of authority.

4. Quantum of Work:

The delegation of work also depends upon the quantum of work. If work is small
then there will be no need to delegate. When the work increases the need for
delegation arises. More the quantum of work greater will be the degree of
delegation.

5. Confidence in Subordinates:

The delegation is also determined by the confidence which superior has in his
subordinates. If the subordinates are not considered worthy of taking decisions
independently then there will be no delegation. On the other hand, if superior has
full confidence in the capacity of his subordinates then he will delegate more and
more authority and will utilize the subordinates to the maximum.

(b) Describe the important elements of bureaucracy. What are it unintended

consequences? Suggest whether it is feasible to design an organisation free
from bureaucratic elements.

-> Bureaucracy usually refers to a system in which selected officials take the
decisions instead of the elected professionals and representatives. We find divided
opinions on the advantages and disadvantage of the bureaucratic system. But most
of the general public is clearly against it because of its numerous problems and
shortcomings.
John Stuart Mill, the famous philosopher and political economist, believed that
bureaucracy had some specific benefits. But even he claimed that its negatives far
outweigh the positives. Bureaucracy, which is also commonly referred as red tape,
complicates things by excessively following prescribed methods to the letter. It
actually kills the basic concept of having a structured framework in the first place
– the purpose of which was to speed things up.
Here are the 5 biggest problems of bureaucracy:
1. Rigidity Stampedes Creativity:
The whole bureaucratic system is formed around rigid rules and regulations. This
excessive form of rigid structures stampedes creativity and restricts growth. In
all types of officialdom there is always adamant, inflexible and unaccommodating.
Furthermore, bureaucracy requires everything to follow a given system, which
diminishes any chances of creativity and out-of-the-box solutions.
With the modern-world changing fast and evolving in light of new challenges, this
rigidity of bureaucracy is a big problem for any organization or government.
2. Impersonal:
According to Max Weber’s theory of bureaucracy, it all works within a structure
that does not have enough room for human emotions, satisfaction, needs and
values. It is impersonal in nature and neither cares for the consumers nor the
employees working around.
In a bureaucratic system, the fixed rules and regulations of an organization are
more important than any individual’s emotions, values or needs. It is one of the
biggest shortcomings of bureaucracy, which makes it one of the most disliked
forms of administration.
3. Customer Dissatisfaction:
Although bureaucracy claims to have a framework to organize things, but the by-
products of it makes it all the more difficult to manage things quickly and
efficiently. There are a lot of paperwork, files, registrations and processes in a
bureaucratic system. This makes dealing with customers or consumers more
troublesome, complex and problematic.
For example, if a consumer complains about a product or service, he requires
immediate redemption and action on his complain. The consumer does not want
to get bogged down with filing procedures, structured hierarchy and complex
systems.
4. Slower Decision Making:
As you know that a bureaucratic system runs in accordance with its structure and
set mechanics of officialdom, it significantly slows down the decision-making
processes. Bureaucracy most often fails to quickly respond to the ever-changing
competitive world. It cannot react to business changes, consumer complaints and
demand-and-supply needs as quickly as some of the other competitors can do.
This is one of the reasons that we see unnecessary delays in a bureaucratic system.
Today’s world requires fast-paced decisions and instant reactions – something
that bureaucracy will always fail to comply with.
5. Limits Capabilities of Employees:
Last, but not the least, limiting capabilities of its employees is one of the biggest
drawbacks and problems of bureaucracy. You must know that a bureaucratic
system believes in heavy departmentalization and division of job responsibilities.
Although compartmentalization may bring some advantages, but on the other
hand, it significantly limits the potential and capabilities of the employees.
The job compartmentalization does not allow an employee to work beyond its
delegated responsibilities. This not only limits the personal growth and motivation
of the employee, but it also confines the overall productivity level of the
organization.

A bureaucracy is an organization, whether publicly or privately

owned, made up of several policymaking departments or units. People who work
in bureaucracies are informally known as bureaucrats. While the hierarchical
administrative structure of many governments is perhaps the most common
example of a bureaucracy, the term can also describe the administrative structure
of private-sector businesses or other non-governmental organizations, such as
colleges and hospitals.

In an ideal bureaucracy, the principles and processes are based on rational,

clearly-understood rules, and they are applied in a manner that is never influenced
by interpersonal relationships or political alliances.

However, in practice, bureaucracies often fail to achieve this ideal. Thus, it's
important to consider the pros and cons of bureaucracy in the real world.

The hierarchical structure of bureaucracy ensures that the bureaucrats who

administer the rules and regulations have clearly-defined tasks. This clear "chain
of command" allows management to closely monitor the organization’s
performance and deal effectively with problems when they arise.

The impersonal nature of bureaucracy is often criticized, but this "coldness" is by

design. Applying rules and policies strictly and consistently reduce the chances
that some people will receive more favorable treatment than others. By remaining
impersonal, the bureaucracy can help to ensure that all people are treated fairly,
without friendships or political affiliations influencing the bureaucrats who are
making the decisions.

Bureaucracies tend to demand employees with specialized educational

backgrounds and expertise related to the agencies or departments to which they
are assigned. Along with ongoing training, this expertise helps to ensure that the
bureaucrats are able to carry out their tasks consistently and effectively. In
addition, advocates of bureaucracy argue that bureaucrats tend to have higher
levels of education and personal responsibility when compared to
non‐bureaucrats.

While government bureaucrats do not make the policies and rules they implement,
they nevertheless play an integral part in the rule-making process by providing
essential data, feedback, and information to the elected lawmakers.

Due to their rigid rules and procedures, bureaucracies are often slow to respond to
unexpected situations and slow to adapt to changing social conditions. In addition,
when left with no latitude to deviate from the rules, frustrated employees can
become defensive and indifferent to the needs of the people who deal with them.

The hierarchical structure of bureaucracies can lead to internal “empire-building.”

Department supervisors may add unnecessary subordinates, whether through
poor decision-making or in order to build their own power and status. Redundant
and non-essential employees quickly reduce the organization’s productivity and
efficiency.

Absent of adequate oversight, bureaucrats with decision-making power could

solicit and accept bribes in return for their assistance. In particular, high-level
bureaucrats can misuse the power of their positions to further their personal
interests.

Bureaucracies (especially government bureaucracies) are known to generate a lot

of "red tape." This refers to lengthy official processes that involve submitting
numerous forms or documents with many specific requirements. Critics argue that
these processes slow down the bureaucracy's ability to provide a service to the
public while also costing taxpayers money and time.
Examples of Bureaucracy

Examples of bureaucracies can be found everywhere. State departments of motor

vehicles, health maintenance organizations (HMOs), financial lending
organizations like savings and loans, and insurance companies are all
bureaucracies that many people deal with regularly.

In the U.S. government’s federal bureaucracy, appointed bureaucrats create rules

and regulations needed to efficiently and consistently implement and enforce the
laws and policies made by the elected officials. All of the approximately 2,000
federal government agencies, divisions, departments, and commissions are
examples of bureaucracies. The most visible of those bureaucracies include the
Social Security Administration, the Internal Revenue Service, and the Veterans
Benefits Administration.

3(a) What do you mean by Organisational Behaviour? Discuss the various

determinants of organisational 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:

1. Impact of personality on performance
2. Employee motivation
3. Leadership
4. How to create effective teams and groups
5. Study of different organizational structures
6. Individual behaviour, attitude and learning
7. Perception
8. Design and development of effective organization
9. Job design
10. Impact of culture on organizational behaviour
11. Management of change
12. Management of conflict and stress
13. Organizational development
14. Organizational culture
15. Transactional analysis
16. Group behaviour, power and politics
17. Job design
18. 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.

Determinants of organisational behaviour:-

1. Nature of the Objectives:
The objectives of an enterprise govern the selection of persons with appropriate
skills and equipment capable of delivering the goods. The objectives, thus,
determine the basis of the organisation structure. For example, an organisation
structure of an industrial concern cannot be the same as that of a religious or
governmental institution.

2. Operative Activities:
An individual in an enterprise may negotiate a sale to a customer; another may be
engaged in assembling the parts of a motor car; and a third may be collecting
market data or cost information. The operative activities and the inter-relations
that exist among different tasks have an important bearing on the structure of an
organisation.

3. Technology:
The organisation structure of an enterprise depends upon the type and nature of
technological process adopted for the production. Therefore, technology is a factor
for consideration in determining the structure of an organisation.

4. Sequence of Tasks:
The nature of technology often dictates the sequence of tasks to be performed and
human relationships are required to be adjusted according to this sequence of
tasks. This sequence of tasks also acts as a major determinant to influence the
structure of the organisation.

5. Limitations of Skill and Working Capacity:

Individuals in an enterprise differ in their skills and abilities. These individual
differences affect the tasks to be assigned to an individual and, as such, the
structure is required to be adjusted taking into account the limitations of human
skill and ability.

6. Managerial Functions:
The managerial functions at one level or department may be different from that of
other level or department. Therefore, the structure of organisation is to be devised
to maximise effective inter-relationships at different management levels so that it
can facilitate the attainment of objectives by the effective efforts of the
subordinate employees.

7. Size and Scope:

The smaller the firm, the more informal and loose becomes the interpersonal
contacts and relationships. But they will be otherwise in the case of big concerns.
So, the size of the enterprise and its scope of performance have an effective
influence on the organisation structure.

8. Strategy:
After considering the organisation structure of various enterprises the
management thinkers have come to the conclusion that the strategy plays a special
role in determining the outline of authority and flow of communication in an
organisation.

9. Social Needs:
The social needs of an individual such as—status, recognition, sense of belonging,
opportunity for development of abilities or the satisfaction of ego need—require
that they should be given due weight for their fulfilment within the organisation.
The structure of an organisation cannot ignore these social needs.

(b) What is personality? What are its determinants? Which of them you feel
are more important in shaping personality and why?

-> The term ‘personality’ is derived from the Latin word ‘persona’ which means a
mask. According to K. Young, “Personality is a patterned body of habits, traits,
attitudes and ideas of an individual, as these are organised externally into roles
and statuses, and as they relate internally to motivation, goals, and various aspects
of selfhood.” G. W. Allport defined it as “a person’s pattern of habits, attitudes, and
traits which determine his adjustment to his environment.”

According to Robert E. Park and Earnest W. Burgess, personality is “the sum and
organisation of those traits which determine the role of the individual in the
group.” Herbert A. Bloch defined it as “the characteristic organisation of the
individual’s habits, attitudes, values, emotional characteristics which imparts
consistency to the behaviour of the individual.” According to Arnold W. Green,
“personality is the sum of a person’s values (the objects of his striving, such as
ideas, prestige, power and sex) plus his non- physical traits (his habitual ways of
acting and reacting).” According to Linton, personality embraces the total
“organised aggregate of psychological processes and status pertaining to the
individual.”

Personality, as we understand it, says MacIver, “is all that an individual is and has
experienced so far as this “all” can be comprehended as unity.” According to
Lundberg and others, “The term personality refers to the habits, attitudes, and
other social traits that are characteristic of a given individual’s behaviour.” By
personality Ogburn means “the integration of the socio psychological behaviour of
the human being, represented by habits of action and feeling, attitudes and
opinions.” Davis regards personality “a psychic phenomenon which is neither
organic nor social but an emergent from a combination of the two.”

On the basis of these definitions it may be said there are two main
approaches to the study of personality:

(1) The psychological, and

(2) The sociological.

Although there is also a third approach, the biological approach, but the biological
definition of personality which comprehends only the bio-physical characteristics
of the individual organism is inadequate. The psychological approach considers
personally as a certain style peculiar to the individual. This style is determined by
the characteristic organisation of mental trends, complexes, emotions and
sentiments.

The psychological approach enables us to understand the phenomena of

personally disorganisation and the role of wishes, of mental conflict, and of
repression and sublimation in the growth of personality. The sociological
approach considers personality in terms of the status of the individual in the
group, in terms of his own conception of his role in the group of which he is a
member. What others think of us plays a large part in the formation of our
personality.

Thus personality is the sum of the ideas, attitudes and values of a person which
determine his role in society and form an integral part of his character. Personality
is acquired by tie individual as a result of his participation in group life. As a
member of the group he learns certain behaviour systems and symbolic skills
which determine his ideas, attitudes and social values.

These ideas, attitudes and values which an individual holds, comprise his
personality. The personality of an individual denotes an adult’s inner construction
of the outer world. It is the result of the inter-action processes by which standards
of ethical judgment, belief and conduct are established in social groups and
communities.
To sum up we would say that:
(i) Personality is not related to bodily structure alone. It includes both structure
and dynamics

(ii) Personality is an indivisible unit.

(iii) Personality is neither good nor bad.

(iv) Personality is not a mysterious phenomenon.

(v) Every personality is unique.

(vi) Personality refers to persistent qualities of the individual. It expresses

consistency and regularly.

(vii) Personality is acquired.

(viii) Personality is influenced by social interaction. It is defined in terms of

behaviour.

The Types of Personality:

Some attempts have been made to classify personalities into types. In the 5th
century B. C., the Greek physician Hippocrates divided human beings into four
types: the sanguine, the melancholic, the choleric, and the phlegmatic. The Swiss
psychoanalyst, Carl Gustac Jung, distinguished between two main types, the
introvert and the extrovert. The introvert is preoccupied with his own self; the
extrovert with things outside self.

In these two types there is a third type—the ambiverts who are neither the one
nor the other but vacillate between the two. The majority of people are ambiverts.
According to Ernest Kretchmer the German psychiatrist, the extrovert personality
is a stout person while the introvert one is a tall and slender person. The first type
of persons he called “pykrnic” the second type he called “leptosome” W.I. Thomas
and Florian Znaniecki distinguished among the Bohemian, the Philistine, and the
Creative.

Determinants of Personality:
Personality is a result of the combination of four factors, i.e., physical environment,
heredity, culture, and particular experiences. Here we discuss each factor
determining personality separately.

Personality and Environment:

Above we described the influence of physical environment on culture and pointed
out that geographical environment sometimes determines cultural variability.
That the Eskimos have a culture different from that of the Indians is due to the fact
that the former have a geography different from the latter.
Man comes to form ideas and attitudes according to the physical environment he
lives in.

To the extent that the physical environment determines cultural development and
to the extent, that culture in turn determines personality, a relationship between
personality and environment becomes clear. Some two thousand years ago,
Aristotle claimed that people living in Northern Europe were owing to a cold
climate, full of spirit but lacking in intelligence and skill. The natives of Asia, on the
other hand, are intelligent and inventive but lack in spirit, and are, therefore,
slaves.

Montesquieu, in the eighteenth century, claimed that the bravery of those blessed
by a cold climate enables them to maintain their liberties. Great heat enervates
courage while cold causes a certain vigour of body and mind. At high
temperatures, it is said there is disinclination to work and so civilizations have
grown up where the temperatures have been average near or below the optimum.

The people of mountains as well as deserts are usually bold, hard and powerful.
Huntington’s discussion of the effects of physical environment on man’s attitudes
and mental make-up is very exhaustive. However, as told previously, the physical
conditions are more permissive and limiting factors than causative factors. They
set the limits within which personality can develop.

Heredity and Personality:

Heredity is another factor determining human personality. Some of the similarities
in man’s personality are said to be due to his common heredity. Every human
group inherits the same general set of biological needs and capacities. These
common needs and capacities explain some of our similarities in personality. Man
originates from the union of male and female germ cells into a single cell which is
formed at the moment of conception.

He tends to resemble his parents in physical appearance and intelligence. The

nervous system, the organic drives and the duchess glands have a great bearing
upon personality. They determine whether an individual will be vigorous or
feeble, energetic or lethargic, idiot of intelligent, coward or courageous.

Heredity may affect personality in another way, i.e., indirectly. If boys in a society
prefers slim girls as their companion, such girls will receive greater attention of
the society providing them thereby more opportunities to develop their
personality. According to Allport, Gordon, W. no feature of personality is devoid of
hereditary influence.

However, heredity does not mould human personality alone and unaided. “For the
present, we can only assume that there are -genes for normal personality traits
just as there are genes for other aspects of human make-up and functioning.
Where in members of the same family, in a similar environment, we can see great
differences in personality; we may ascribe these in part at least to differences in
gene contributions.

We can also guess that some of the family similarities in personality are genetically
influenced. But we are still a long way from identifying specific ‘personality’ genes,
gauging their effects or hazarding predictions as to what the personality of a given
child will be on the basis of what we know about its parents.” However, according
to a news report (Times of India, Jan. 3, 1996) the scientists have identified a gene
which influences impulsiveness, excitability and extravagance.

In short, heredity can never be considered as charting a fixed and definite course
of anyone’s personality. At the best, what anyone inherits are the potentialities for
a wide range of personalities, the precise form into which a personality will “jell”
being determined by circumstances. Osborn and Nimkoff write, “It would be an
error to hold, as’ endocrine enthusiasts do, that the glands determine the whole
personality, include rich things, as one’s opinions, one’s habits, and one’s skills.” t
is possible to over-activate or under-activate some of these kinds by injecting
certain kinds of hormones and thereby affect human personality. In other words, it
may be said that the available evidence does not support the dogmatic view that
personality is biologically transmitted.

Of course, there are some traits which seem to be more directly affected by
heredity than others. Manual skills, intelligence and sensory discriminations are
some of the abilities which appear more highly developed in some family lines
than others. But other traits such as one’s beliefs, loyalties, prejudices and
manners are for the most part the result of training and experience.

Heredity only furnishes the materials out of which experience will mould the
personality. Experience determines the way these materials will be used. An
individual may be energetic because of his heredity, but whether he is active on his
own belief or on behalf of others is a matter of his training.

Whether he exerts himself in making money or in scholarly activity is also

dependent upon his bringing. If personality is a direct consequence of heredity
tendencies or traits then all the sons and daughters of the same parents brought
up in the same environment should have identical personalities or at least
personalities that are very much alike.

But investigation shows that even at the tender age of three or four years they
show quite distinct personalities. The new born human being is, to use the phrase
of Koenig, Hopper and Gross, a “candidate for personality.” It is, therefore, clear
that an individual’s heredity alone would not enable us to predict his traits and
values.

Personality and Culture:

There can be little doubt that culture largely determines the types of personality
that will predominate in the particular group. According to some thinkers,
personality is the subjective aspect of culture. They regard personality and culture
as two sides of the same coin.

Spiro has observed, ‘The development of personality and the acquisition of culture
are not different processes, but one and the same learning process.” Personality is
an individual aspect of culture, while culture is a collective aspect of personality.”
Each culture produces its special type or types of personality.

In 1937 the anthropologist Ralph Linton and the psychoanalyst Abram Kardinar
began a series of joint explorations of the relationship between culture and
personality by subjecting to minute study reports of several primitive societies
and one modern American village. Their studies have demonstrated that each
culture tends to create and is supported by a “basic personality type.” A given
cultural environment sets its participant members off from other human beings
operating under different cultural environments.

According to Frank, ‘culture is a coercive influence dominating the individual and

moulding his personality by virtue of the ideas, conceptions and beliefs which had
brought to bear on him through communal life.” The culture provides the raw
material of which the individual makes his life. The traditions, customs, mores,
religion, institutions, moral and social standards of a group affect the personality
of the group members. From the moment of birth, the child is treated in ways
which shape his personality. Every culture exerts a series of general influences
upon the individuals who grow up under it.

Ogburn as we noted above, divided culture into “material” and “non-material.”

According to him, both material and non-material culture have a bearing on
personality. As for the termer he provides examples of the influence of plumbing
on the formation of habits and attitudes favourable to cleanliness and the relation
of time-pieces to punctuality. The American Indians who have no clocks or
watches in their culture have little notion of keeping appointments with any
exactness.

According to him, they have no sense of time. The personality of an American

Indian differs from that of a white man in the matter of punctuality and this is
because of differences in their culture. Similarly, some cultures greedy value
cleanliness as witnessed by the saying: “Cleanliness is next to godliness.” This trait
of cleanliness is greatly encouraged by the technology of plumbing and other
inventions that are found with it.

The Eskimos are dirty because they have to hang a bag of snow down their backs
to melt it in order to get water. A man who has just to turn on a tap of water will
naturally be more clean than an Eskimo. Cleanliness, therefore, is a matter not of
heredity but of the type of culture. As for the connection between the non-material
culture and personality, language affords an instructive example. We know that
one of the principal differences between man and animals is that he alone
possesses speech.

Language can be learnt only in society. People who cannot speak exhibit warped
personality. Since language is the essential medium through which the individual
obtains his information and his attitudes, therefore, it is the principal vehicle for
the development of personality. Moreover, speech itself becomes a trait of
personality. The coarse voice of woodcutter can be readily distinguished from the
hushed tones of a man.

The short, crisp, guttural speech of the German seems to be part of his personality,
as does the fluid, flowing voluble speech of the Spaniard. Movements of the hands
and shoulders in speech are regarded as part of the very core of the personalities
of Italians and Jews. The Jews use their gestures for emphasis only, while Italians
depend upon them to convey part of the meaning.

Another illustration of the influence of culture on personality is the relationship of

men and women. In the earlier period when farming was the principal business,
women generally had no occupations outside the home, and naturally, therefore,
they were economically dependent upon their fathers or husbands. Obedience was
a natural consequence of such conditions. But today hundreds of women work
outside the homes and earn salaries.

They enjoy equal rights with men and are not as dependent upon them as they
were in the past. Attitude of independence instead of obedience has today become
a trait of women’s personality. With the growing realisation of the importance of
culture for personality, sociologists have recently made attempts to identify the
factors in particular cultures which give a distinctive stamp to the individuals
within the group. Ruth Benedict analyzed the cultures of three primitive tribes and
found that cultures may be divided into two major types—The Apollonian and the
Dionysian.

The Apollonian type is characterised by restraint, even temperance’s, moderation

and co- cooperativeness, whereas the Dionysian type is marked by emotionalism,
excess, pursuit of prestige, individualism and competitiveness. The Zuni culture is
classified as Apollonian, while the Kwakiutl and Dobbins as Dionysian.

The personality of the Hindus in India differs greatly from that of Englishmen.
Why? The answer is ‘a different Hindu culture’. The Hindu culture lays emphasis
not on material and worldly things, but on things spiritual and religious. In every
Hindu family there is a religious environment. The mother gets up early in the
morning, takes bath and spends an hour in meditation. When the children get up,
they go and touch the feet of their parents and bow before the family gods or
goddesses. The Hindu child from the very birth begins to acquire a religious and
philosophical personality built on the “inner life.”
From the various illustrations cited so far it is thus clear that culture greatly
moulds personality. The individual ideas and behaviour are largely the results of
cultural conditioning. There is a great difference of ideas between the Hindu
devotee immersed in religion and the Russian Communist who thoroughly rejects
it.

However, it should not be concluded that culture is a massive die that shapes all
that come under it with an identical pattern. All the people of a given culture are
not of one cast. Personality traits differ within any culture, some people in any
culture are more aggressive than others, and some are more submissive, kind and
competitive. Personality is not totally determined by culture, even though no
personality escapes its influence. It is only one determinant among others. Ruth
Benedict writes, “No anthropologist with a background of experiences of other
cultures has ever believed that individuals were automatons, mechanically
carrying out the decrees of their civilizations.

No culture yet observed has been able to eradicate the difference in the
temperaments of the persons who compose it. It is always a give and take affair.”
Linton classified cultural influence into the universals, specialities and alternatives
and came to the conclusion that culture makes for uniformity of personality only
through the universals and since universals are few in number as compared with
specialities and alternatives, the effect of culture is to make for variety as well as
uniformity.

Personality and Particular Experiences:

Personality is also determined by another factor, namely, the particular and
unique experiences. There are two types of experiences one, those that stem from
continuous association with one’s group, second, those that arise suddenly and are
not likely to recur. The type of people who meet the child daily has a major
influence on his personality. The personality of parents does more to affect a
child’s personality.

If the parents are kind, tolerant of boyish pranks, interested in athletics and
anxious to encourage their child’s separate interests the child will have a different
experience and there shall be different influence on his personality than the one
when the parents are unkind, quick tempered and arbitrary. In the home is
fashioned the style of personality that will by and large characterise the individual
throughout his life.

Social rituals,’ ranging from table manners to getting along with others, are
consciously inculcated in the child by parents. The child picks up the language of
his parents. Problems of psychological and emotional adjustments arise and are
solved appropriately by each child in terms of the cultural values and standards of
the family. The family set up tends to bring the child into contact with his play-
mates and teachers. What his play-game members are, and his school teachers are
will also determine his personality development.

Group influences are relatively greater in early childhood. This is the period when
the relationships of the child with his mother, father and siblings affect profoundly
the organisation of his drives and emotions, the deeper and unconscious aspects of
his personality.

A certain degree of maturation is needed before the child can understand the adult
norms. The basic personality structure that is formed during this period is difficult
to change. Whether a person becomes a leader, a coward, an imitator? Whether he
feels inferior or superior, whether he becomes altruistic or egoistic depends upon
the kind of interaction he has with others. Group interaction moulds his
personality.

Away from the group he may become insane or develop queer attitudes. As a child
grows he develops wish for response and wish for recognition. To his organic
needs are added what are called ‘sociogenic’ needs which are highly important
motivating forces in personality. How the idea of self develops in the child is an
important study. The self does not exist at birth but begins to arise as the child
learns something of the world of sensation about him.

He comes to learn of what belongs to him and takes pride in his possessions. He
learns that parts of his body belong to him. He becomes acquainted with his name
and paternity and comes to distinguish himself from others. The praise and blame
he receives from others account in large measure for his conduct. The
development of self leads to the growth of conscience and ego.

Our view of self conception is usually based on the opinion of others about us. It
does not. However, mean that we value all opinions about our conduct equally. We
attach importance only to the opinions of those whom we consider for one reason
or the other significant than others.

Our parents are usually most significant than others since they are the ones who
are intimately related to us and have greatest power than others over us especially
during the early years of life. In short, our early experiences are very important in
the formation of our personality. It is in early life that the foundations of
personality are laid.

Why are the children brought up in the same family differing from one another in
their personality, even though they have had the same experiences? The point is
that they have not had the same experiences. Some experiences are similar while
others are different. Each child enters a different family unit.

One is the first born; he is the only child until the arrival of the second. The parents
do not treat all their children exactly alike. The children enter different play
groups, have different teachers and meet different incidents. They do not share all
incidents and experiences. Each person’s experience is unique as nobody else
perfectly duplicates it. Thus, each child has unique experiences exactly duplicated
by no one and, therefore, grows a different personality.

Sometimes a sudden experience leaves an abiding influence upon the personality

of an individual. Thus a small child may get frightened at the view of a bloody
accident, and even after the accident he may be obsessed of the horror of fear.
Sometimes a girl’s experience with a rapist may condemn her to a life of sexual
maladjustment.

A book may not uneaten challenge a man to renounce the world and seek God. If a
man meets an accident which cripples or weakens him, he may come to entertain
the feelings of inadequacy. Lord Buddha is said to have been led to renunciation by
the sight of a funeral procession. In this way experiences also determine one’s
personality.

However, it may be noted that one’s own personality that one has acquired at any
moment will in part determine how the experiences influence his pre-acquired
personality. Thus a child who is robust, outgoing, athletic would find his parents in
the first case a model for behaviour, a model that would deepen the already
apparent personality traits. But if the child is shy, retiring and bookish he may find
such parents’ personality distasteful and intensify the opposed personality trends
already apparent.

It may also be referred that personality is a matter of social situations. It has been
shown by social researchers that a person may show honesty in one situation and
not in another. The same is true for other personality traits also. Personality traits
tend to be specific responses to particular situations rather than general
behaviour patterns. It is a dynamic unity with a creative potential.

Heredity, physical environment, culture and particular experiences are thus the
four factors that explain personality—its formation, development and
maintenance. Beyond the joint influence of these factors, however, the relative
contribution of each factor to personality varies with the characteristic or
personality process involved and, perhaps, with the individual concerned.

Genetic or hereditary factors may be more critical for some personality

characteristics, while environmental factors, (cultural, financial), may be more
important for others. Furthermore, for any one characteristic, the relative
contribution of one or another factor may vary from person to person.

Also there is no way yet known to measure the effect of each factor or to state how
the factors combine to produce a given result. The behaviour of a juvenile
delinquent is affected by his heredity and by his home life. But how much is
contributed by each factor, cannot be measured in exact terms.
4(a) Critically examine the need of hierarchy theory of Motivation.

-> Maslow’s Need Hierarchy Theory:

Probably the most widely known theory of individual need and motivation comes
from Abraham Maslow who was a clinical psychologist in U.S.A., Maslow. He
suggested that every individual has a complex set of exceptionally strong needs
and the behaviour of an individual at a particular moment is usually determined
by his strongest need. According to psychologists, human needs have a certain
priority.

As the more basic needs are satisfied, the individual seeks to satisfy the higher
needs. If the basic needs are not satisfied, efforts to satisfy the higher needs will be
postponed. Maslow stated that people have five basic levels of needs which they
tend to satisfy in a hierarchical fashion. He proposed that human needs can be
arranged in a particular order from the lowest level need to the highest level need.

This need hierarchy can be explained as follows:

1. Physiological Needs:
The physiological needs are taken at the first or starting step for motivation theory
because these are the strongest needs until they are reasonably satisfied. There
are the basic bodily needs comprising of hunger, thirst, shelter, clothing, air and
other necessities of life. Human beings first try to acquire these basic necessities of
life, only then they tend to move to the second level of needs.

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. Social Needs:
Once the second level is satisfied, the human beings strive to satisfy their social
needs. Man is a social animal; he wants to belong to a social group where his
emotional needs for love, affection, warmth and friendship are satisfied. Social
needs can be satisfied by being in the company of friends, relatives or other group
such as work groups or voluntary groups.

4. Esteem Needs:
Fourth in the hierarchy of needs is ego or self esteem needs which are concerned
with self respect, self confidence, recognition, appreciation, applause, prestige,
power and control. These needs give the individuals a sense of self worth and ego
satisfaction.

5. Self Actualization Needs:

At the top of the hierarchy is the need for self actualization or the need to fulfil
what a person considers to be the mission in his life. After all his other needs are
fulfilled, a man has the desire for personal achievement. He wants to do something
which is challenging and since this challenge gives him enough push and initiative
to work, it is beneficial to him and the society. The sense of achievement gives him
a sense of psychological satisfaction.

Thus, Maslow suggested the following points:

1. There are five levels of needs.

2. All these are arranged in a hierarchy.
3. A satisfied need is no longer a need. Once a need or certain order of need is
satisfied it ceases to be a motivating factor.
4. Once one level of need is satisfied, the next level of need will emerge as the
depressed needs seeking to be satisfied.
5. The physiological and security needs are finite but the needs of higher order are
infinite and are likely to be dominant in persons at higher levels in the
organisation.
6. Maslow suggests that various levels are interdependent and overlapping. Each
higher level emerging the lower level need has been completely satisfied. Even
though a need is satisfied it will influence behaviour because of interdependent
and overlapping characteristic of needs.

Critical Analysis of Maslow’s Theory:

Maslow theory has been widely appreciated:
(i) It helps the managers in understanding how to motivate the employees.

(ii) This theory is very simple, common and easily understandable.

(iii) It accounts for both inter-personal and intra-personal variations in human

behaviour.
(iv)This theory is dynamic because it presents motivation as a changing force;
changing from one level of needs to another level.

But despite the appreciation for this theory, it has been criticized by many
on the following grounds:
1. Researchers have proved that there is lack of hierarchical structure of needs as
suggested by Maslow, though every individual has some ordering for his need
satisfaction. Some people may be deprived of their lower level needs but may
strive for self actualization needs. The example of MAHATMA GANDHI is one of the
most important. There are always some people in whom, the need for self esteem
is more prominent than social needs.

2. Another problem is that there is a lack of direct cause and effect relationship
between need and behaviour. One particular need may cause different type of
behaviour in different persons. On the other hand, as a particular individual
behaviour may be due to the result of different needs. Thus, need hierarchy is not
as simple as it appears to be.

3. Need and satisfaction of needs is a psychological feeling. Sometimes even the

person may not be aware about his own needs. How can the managers come to
know about these needs?

4. Some people say that hierarchy of need simply does not exist. At all levels needs
are present at given time. An individual motivated by self actualization needs
cannot afford to forget his food. But this criticism is solved by Maslow by saying
that needs are interdependent and overlapping.

5. Another problem with this theory is the operationalization of some of his

concepts which makes it difficult for the researchers to test his theory. For
instance, how does one measure self actualization?

Despite its drawbacks, Maslow’s theory offers managers a good handle on

understanding the motives or needs of individuals and how to motivate
organisational members.

(b) Who is a leader? Discuss the nature of Leadership. Discuss briefly the
selected factors in influencing Leadership effectiveness.

-> Leaders are a beacon of change. They question ideas and give answers to
questions nobody wants to. And it is not easy. Most of us would not even dare to
tread on these thin ropes that hang stretched thin between the pillars of right and
wrong. But people need leaders to show them, what is indeed right. That is where
your leadership abilities come into play, and even the world of leaders has rules.
To be the leader you want to be, you need to follow some principles of leadership
that will help you stay sane in the midst of people who continuously look up to
you.

This is a selfish world no doubt. It is not hard to find people who prefer living for
themselves in the shroud of complete disregard of others. Marcus Aurelius
believes that we came into this world for the sake of one another and we were
meant to live, survive, and thrive in harmony. Being a leader, you should try to
instil the realization in people that life is not just about them. Leaders should
become guardians of their followers and inspire them to help each other. And
when this thought finds its ground in an organization, there is a wide horizon for
growth.

Leaders are humans, and humans make mistakes. Every leader should try to make
sure that they do not over-exalt themselves for when they do so, they reduce the
waiver for mistakes, which small or big, humans are bound to make, and so are
leaders. Be humble to yourself and your followers and try to rectify the mistakes
they make. This will help you gain closure about your followers and beget respect
in their minds for you.

Most of the leaders in today’s industry adapt leadership roles as they see fit. In
that order, there is no specific formula which predefines a certain leadership style,
or type of a leader for that matter. However, it doesn’t hurt anyone to know a thing
or two about leadership before actually performing that role within any capacity.

Nature of Leadership:-

1. Leadership derives from the power and is similar to, yet distinct from,
management. In fact, “leadership” and “management” are different. There can be
leaders of completely unorganized groups, but there can be managers only of
organized groups. Thus it can be said that a manager is necessarily a leader but a
leader may not be a manager.

2. Leadership is essential for managing. The ability to lead effectively is one of the
keys to being an effective manager because she/he has to combine resources and
lead a group to achieve objectives.

3. Leadership and motivation are closely interconnected. By understanding

motivation, one can appreciate better what people want and why they act as they
do. A leader can encourage or dampen workers’ motivation by creating a
favourable or unfavourable working environment in the organization.

4. The essence of leadership is followership. In other words, it is the willingness of

people to follow a person that makes that person a leader. Moreover, people tend
to follow those whom they see as providing a means of achieving their desires,
needs and wants.
5. Leadership involves an unequal distribution of power between leaders and
group members. Group members are not powerless; they can shape group
activities in some ways. Still, the leader will usually have more power than the
group members.

6. Leaders can influence the followers’ behaviour in some ways. Leaders can
influence workers either to do ill or well for the company. The leader must be able
to empower and motivate the followers to the cause.

7. The leader must co-exist with the subordinates or followers and must have a
clear idea about their demands and ambitions. This creates loyalty and trust in
subordinates for their leader.

8. Leadership is to be concerned about values. Followers learn ethics and values

from their leaders. Leaders are the real teachers of ethics, and they can reinforce
ideas. Leaders need to make positive statements of ethics if they are not
hypocritical.

9. Leading is a very demanding job both physically and psychologically. The leader
must have the strength, power, and ability to meet the bodily requirements; zeal,
energy, and patience to meet the mental requirements for leading.

Factors:-

There are four major factors in leadership such as Leader, Followers,

Communication and Situation. Leader must have an honest understanding of who
he is, what he knows, and what he can do. It is the followers, not the leader or
someone else who determines whether the leader is successful. If they do not trust
or lack confidence in their leader, then they will be uninspired. To be successful,
one has to convince his followers, not himself or his superiors, that he is worthy of
being followed. Followers are the subordinates of a head. Leader must know his
people. The fundamental starting point is having a good understanding of human
nature, such as needs, emotions, and motivation. Leader must come to know his
employees’ be, know, and do attributes. Communication maintains good
relationship between leader and followers as well as shows the leader efficiency. A
head lead through two-way communication. Much of it is nonverbal.
Communication should be polite and gentle in manner. It should strengthen the
human relations. There are many different situations one leader has to face. What
the leader do in one situation will not always work in another. He must use his
judgment to decide the best course of action and the leadership style needed for
each situation. For example, leader may need to confront an employee for
inappropriate behaviour, but if the confrontation is too late or too early, too harsh
or too weak, then the results may prove ineffective. The situation normally has a
greater effect on a leader's action than his or her traits. This is because while traits
may have an impressive stability over a period of time, they have little consistency
across situations (Mischel, 1968). Various forces will affect these four factors.
Examples of forces are relationship with seniors, the skill of followers, the informal
leaders within the organization, and how the organization is organized.

Attributes of Effective Leader

Effective leaders utilize different ways to lead a group. Some maintain a low profile
but are analytical; some are charismatic and intuitive. There is no single leadership
style that is effective in all situations. The effectiveness of a leadership style
depends on the nature of situation which it faces. Most important thing is that all
effective leaders should have a high degree of emotional intelligence. Goleman
(1998) pointed out that the self awareness, self regulation, motivation, empathy
and social skill are the attribute of an effective leader, and all these constitute ones’
emotional intelligence which is indispensable for effective leadership.

Self awareness - when an individual expresses deep understanding of emotions,

strengths, weakness, needs and drives, he may be branded with the quality of self
awareness. An effective leader badly needs the quality of self awareness. Leaders
with strong self awareness are neither overly critical of their subordinates, nor
unrealistically hopeful in their expectation. They will be honest with themselves
and with others. Leaders with high self awareness understand how their feelings
affect themselves and others, and also their performance on the job. High self
aware leaders are aware of their values and goals clearly, they are confident of
what they are doing and where they are leading, have realistic self assessment,
ability to admit mistakes, are comfortable on talking about their strengths and
weaknesses, and they appreciate constructive criticism. Self aware leaders express
self confidence in their task and ready to take help from others when they feel
necessary. They do not strain themselves on assignment but are eager to take
ability bounded risks.

Self regulation - makes people free from being tensioned of their own feelings. It
helps them control bad moods and emotional impulses, and even redirect them to
achieve a purpose. It is an important characteristic of an effective leader. Effective
leader can control their feelings and impulses and create an environment of trust
and fairness. Such an environment facilitates focusing all energies on achieving the
desired objectives rather than on internal politics as well as fighting each other,
which loose the integrity and mental health of the group. Talented people prefer to
join, and stay on at, such organizations. Self regulation enhances integrity, a
personal virtue which is an organizational strength as well. Most unethical
incidents that occur in organizations arise from impulsive behaviour. In most cases
people do not plan to exaggerate results, or use power for selfish purposes.
However, when they come across an opportunity, they surrender to their baser
impulses as they lack self control. Effective leaders are capable of a high degree of
self regulation, and do not allow themselves to act on impulses.
Motivation - effective leaders are not motivated by external factors such as
extended salary, royal power and so forth, instead an internal enthusiasm which
motivates him to achieve a particular task. They seek creative challenges, have a
passion for learning, and enjoy the pleasure of successful performance of job. They
display remarkable patience in improving past performances. Effective leaders are
highly energetic and are often restless. Creative and innovative way performing
task is another attraction of effective leaders.

Empathy is the most visible trait of an effective leader. Empathy does not mean
adopting others emotions as one’s own. Nor it is attempting to please everyone.
Empathy means thoughtfully considering employees’ feelings-along with other
factors in the process of making intelligent decisions.

Social skills are the ability of an individual to deal with society effectively in
accordance with the situations. Socially skilled people have wide circle of
connections. They are extremely good at establishing common ground with all
kinds of people. This ability helps them in building rapport with the society quickly.
They incorporate many hands while performing the common and social welfare
dealings. They believe that nothing important get done alone.

These characteristics of effective leaders complement and reinforce each other.

Effective leaders good at self regulation can understand and control their emotions.
Their self regulation helps them in building and managing relationships, high level
of motivation helps them in displaying superior social skills. Motivated people are
optimistic even when they face setbacks and failures. They are happy in their
conversations and social encounters. This too helps them in building relationships.
Socially skilled people are expert at managing the team. Their influential skills,
complemented by self awareness, self regulation, and empathy, make this possible.
They know when to make an emotional plea and when to appeal to reason.

5(a) Discuss the process of Communication. Mention how Communication

can be made more 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.

(b) Define Organisational Development. Describe the characteristics of

Organisational Development.

-> Organizational development can be defined as an objective-based methodology

used to initiate a change of systems in an entity. Organizational development is
achieved through a shift in communication processes or their supporting
architecture. The behaviour of employees allows professionals to examine and
observe the work environment and anticipate change, which is then effected to
accomplish sound organizational development.

Benefits of Organizational Development

Increasing productivity and efficiency comes with many benefits. However, the
best way to encourage positive results is by using a well-thought-out
organizational development structure. Organizational development is used to
equip an organization with the right tools so that it can adapt and respond well to
changes in the market. The benefits of organizational development include:

1. Continuous development

Entities that participate in organizational development continually develop their

business models. Organizational development creates a constant pattern of
improvement in which strategies are developed, evaluated, implemented, and
assessed for quality.

In essence, the process builds a favourable environment in which a company can

embrace change, both internally and externally. The change is leveraged to
encourage periodic renewal.

2. Increased horizontal and vertical communication

Of considerable merit to organizational development is effective communication,

interaction, and feedback in an organization. An efficient communication system
aligns employees with mutual goals, values, and objectives.

An open communication system enables employees to understand the importance

of change in an organization. An active organizational development increases
communication in an organization, and feedback is shared continuously shared to
encourage improvement.

3. Employee growth

Organizational development places significant emphasis on effective

communication to encourage employees to effect necessary changes. Many
industry changes require employee development programs. As a result, many
organizations are working towards improving the skills of their employees to
equip them with market-relevant skills and the right attitude.

4. Enhancement of products and services

Innovation is one of the main benefits of organizational development, and it is

often associated with the improvement of products and services. One approach to
change is employee development, and its critical focal point is a reward for
motivation and success.

In such a case, the engagement of employees is very high, which leads to

innovation and productivity. Through competitive analysis, consumer
expectations, and market research, organizational development promotes change.

5. Increased profit margins

Organizational development influences the bottom line in many different ways. As

a result of increased productivity and innovation, profits and efficiency increase as
well. Costs come down because the organization can manage turnover and
absenteeism. After the alignment of an entity’s objectives, it can focus entirely on
development and product and service quality, leading to improvements in
employee satisfaction.

Characteristics of Organisational Development:-

1. Planned Change:
Organisational development (OD) is an educational strategy for bringing about
planned change. Planned change concept makes it different from other approaches
for change in organisations.

2. Encompasses the Whole Organisation:

This change covers the entire organisation. Organisational Development is the
development of the whole organisation so that it can respond to change
effectively. OD tends to ensure that all parts of the organisation are well
coordinated in order to solve the problems and opportunities that are brought by
change.

3. Long Range Change:

OD is a long term process. It may take months or years to implement it. OD is
never intended to be a stopgap arrangement or measure.
4. Systems Orientation:
OD is concerned with the various groups in the organisation and their interactions
with each other. It is concerned with formal as well as informal or social
relationships. It is concerned with group structures, processes and attitudes. OD
emphasizes on the relationships among the groups not on the groups themselves.

5. Change Agent:
The services of outside experts are obtained, generally, to implement the OD
process. In OD, “Do it yourself” programmes are discouraged. When the primary
change agent is a consultant from outside the organisation, he can operate
independently without ties to the organisational hierarchy and politics of the
organisation. The personnel director is the internal agent of the organisation who
coordinates the programme with the management and the external agent.

As the external agent also works with the management, there is a three way
relationship of the personnel director, management and the outside consultant as
they develop the OD programme. Very rarely, an internal change agent is used by
the organisation, who usually is a specialist on the personnel staff.

6. Problem Solving:
OD emphasizes on problem solving rather than just theoretical discussion of the
problems. The focus on real, ongoing problems rather than the theoretical or
artificial ones is called actions research. Action research is a very important
feature of OD. Sometimes, OD is called organisational improvement through action
research.

7. Experiential Learning:
In the traditional approaches, training was provided to the people by lecture and
discussion method, in which people talk about only abstract ideas. But in OD,
particularly learn by experiencing in the training environment the kind of human
problems they face on the job. This approach tends to produce more changed
behaviour than the traditional approach. Theory is also necessary and desirable,
but the ultimate test is how it applies in real practice. These answers are provided
by OD.

8. Collaborative Management:
In contrast to the traditional management structure where orders are issued at
upper levels and simply carried out by low levels, OD stresses collaboration among
levels. In OD, organisations are viewed in a systems perspective.

9. Group Process:
In OD, an effort is made to improve interpersonal relations, open communication
channels, build trust and encourage responsiveness to others. For this OD relies on
group processes like group discussions, inter group conflicts, confrontations and
procedures for co-operations.
10. Organisational Culture:
OD assumes that the culture of every organisation is different from the culture of
the other organisations. The assumption that a particular solution can be applied
to the problems of all the organisations is generally not made in OD. Instead the
culture of each organisation must be understood and relations consistent with
culture be developed.

11. Feedback:
In OD, feedback is given to all the participants about themselves, which provides
them a basis for their next activities. They generally base their decisions on this
concrete data. With the help of feedback of information, employees will be
encouraged to understand a situation and take self corrective action before
somebody else tells them what to do.

12. Situational and Contingency Oriented:

OD is flexible and pragmatic, adapting the actions to fit particular needs. Although
some occasional OD change agent may have to impose a single best way on the
group, there is, usually, open discussion of several better alternatives rather than a
single best way.

13. Team Building:

The basic objective of OD is to build better team work throughout the
organisation. OD tries to tie all the groups, small and large, working in the
organisation, together to make one integrated and cooperative group. If any
groups have some differences, OD will help them to find out the ways for solving
the differences. The result of effective team work will be improved organisational
performance.