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MGT502 Organizational Behavior Lecture Wise Questions and Answers

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MGT502 Organizational Behavior Lecture no.23

What are Behavioral Theories?

There are two types of Behavioral Theories

Ohio State and University of

Michigan

Ohio State is about Employee-Orientation and Production-Orientation

University of

Michigan is about Initiating Structure and

Consideration

What is Directive leader?

• Lets employees know what is expected of them, schedules work to be done, and gives specific

guidance as to how to accomplish tasks.

What is Supportive leader

• Is friendly and shows concern for the needs of employees.

What is Participative leader

• Consults with employees and uses their suggestions before making a decision.

What is Achievement-oriented leader

• Sets challenging goals and expects employees to perform at their highest levels.




What is Trait of a Charismatic Leader

• Self-confidence

• A vision

• Strong conviction in that

vision

• Out of the ordinary behavior

• The image of a change agent

Two Types of Charismatic Leaders

– Visionary Charismatic Leaders

• Through communication ability, the visionary charismatic leader links followers‟

needs and goals to job or organizational goals.

– Crisis-Based Charismatic Leaders

• The crisis-produced charismatic leader communicates clearly what actions need to

be taken and what their consequences will be.

Transformational leaders

– Leading -- changing the organization to fit the environment

– Develop, communicate, enact a vision

Transactional leaders

– Managing -- linking job performance to rewards

– Ensure employees have necessary resources

– Apply contingency leadership theories

What is Five Dimensions of Trust




• Integrity (honesty and truthfulness)

• Competence (technical/interpersonal)

• Consistency (reliability, predictability and good judgment in handling situations)

• Loyalty (willingness to protect and save face for a person)

• Openness (willingness to share ideas and information freely)

What is Types of Trust

• Deterrence-based trust

• Trust based on fear of reprisal if the trust is violated

• Knowledge-based trust

• Trust based on the behavioral predictability that comes from a history of interaction

• Identification-based trust

• Trust based on an emotional connection between the parties

What is Contingency Theories. Explain it

Contingency theory is a behavioral theory

It tells us in simple way there is no single best way to design organizational structures.

The best way of organizing e.g. a company, is, however, contingent upon the internal and

external situation of the company.

Contingency Theory of Organizations




Trait Theories of Leadership...

Trait Theories of Leadership are used for predicting where leadership effectiveness is effective

or not.

The trait model of leadership is base on the characteristics of many leaders successful and

unsuccessful

Leadership

Leadership is the ability to inspire confidence and support among the people who are needed to

achieve organizational goals. Management consists of four functions: Planning, organizing,

controlling and leading. Leading is the major part of a manager‟s job yet a manager must also

plan, organize and control. Broadly speaking, Leadership deals with the interpersonal aspects of

a manager‟s job, whereas planning, organizing and controlling deals with administrative aspects.

Leaders deal change, inspiration, motivation and influence. In contrast management deals more

with maintaining equilibrium and the status quo.

Vision:

Vision is the ability to imagine different and better conditions and better way to achieve them.

The visionary people look beyond the immediate future to create an image of what the

organization or unit is capable of becoming. A vision is deigned to close the discrepancy

between present and ideal condition.

Self- worth:

Self worth is the positive opinion about one‟s own self. When a person thinks that he is capable

of doing any task in a good manner.

Feel free to ask course related questions on MDB.

Legitimate power

Legitimate power emerges as one‟s formal power due to his position in the hierarchy of an

organization; one can have this power in his day to day business, in other words one can have

this power due to his responsibilities in a certain organization, Legitimate power can increase by




adding the responsibilities, as well as it can decrease if someone fails to meet all the

responsibilities, legitimate power is also viewed as coercive and reward power

Deference trust and where fear of reprisal exist then how trust can be remained among people

Deterrence-based trust is actually based on consistency of behavior continued by the threat or

promise of consequences in case the consistency is not maintained. For example: A trading

partner (supplier) do what they say they will do because of a fear of punishment (cancellation of

contracts), if they do not perform and supply consistently. Here the threat of punishment is seen

as a negative factor.

In path goal theory leaders are less motiveted or managers?

Path goal theory specifies that the leader‟s responsibility is to increase followers‟ motivation to

attain organizational goals. The essence of path goal theory is that the leader‟s job is to assist

followers in attaining their goals and to ensure that their goals are compatible with the overall

objectives of the group or organization. A leader‟s behavior is acceptable to employees to the

degree that they view it as an immediate source of satisfaction or as a means of future

satisfaction. The leader will not be able to motivate his followers unless he himself is not

motivated.

what is defference between leader and managers?

Manager is someone who works with and through other people by coordinating their work

activities in order to accomplish organizational goals.

Leader is someone who can influence others and who has managerial authority.

Managers are appointed to their position. Their ability to influence is based on appointed or

emerge from within a work group while leaders are able to influence others to perform beyond

the actions dictated by formal authority.




Charismatic leadreship?

Charisma is the special quality of leaders like extraordinary determination that differentiate them

from others. The main feature of charismatic leadership is that it involves very strong

relationship and interaction between the leader and the people being led. Charismatic leaders are

visionary, action oriented with very effective communication skills and self-promoting

personality


What is Contingency approaches?

Contingency approaches are leadership models that describe the relationship between leader‟s

styles and specific organizational situations. It includes leadership model developed by Fiedler

and his associates, the situational theory of Hersey and Blanchard, and path goal theory.

What is Coercive power?

Coercive power is the ability of the power holder to remove something from a person or gain his

personal interest. For example: A threatened strike action by a labor union to force the

management to accept their demands. Or another example can be the threat of preventing

promotion or transfer of a subordinate for poor performance.

What is Deterrence-based trust?

Deterrence-based trust depends on consistent behavior and the threat of punishment; it is based

on fear of reprisal in the case of violation of trust. It can be long-run, but in organizational

perspective most of the time it is short term. Because these relationships are not long lasting and

it lasts until the position hold by the person is changed.

What is "POWER AND POLITICS"?

Power can be defined as “the ability of a person to influence the behavior of others to get things

done is the manner he/she wants them to be done.” Or we can say that “It is ones capability to

influence others.”

For instance, a manager in a company has power of both rewards and punishment, so he uses

these powers in effective way to mold behaviors of the workers for the betterment of the




organization. He punishes them to correct their destructive behavior and on other hand uses the

reward power to strengthen their good behavior in favor of the organization.

Politics in Organization are informal and unofficial efforts to influence organization and increase

power for the achievement of any specific objectives. Organizations are comprised of individuals

with different values, interests and goals, so for achievement of their interests, they use politics.

For Example, Labor and workers unions play a vital role in the organizations for the achievement

of the objectives in shape of resources.

Power and politics are reality of today‟s organizations. Many people and groups use them in

organizations to have control on the scarce resources. It is the main responsibility of a manager

to understand and manage them for the success of the organization and control conflicts.


The first stage of "Conflict process" is:

Potential Opposition or incompatibility

In conflict process, first stage points out towards presence of conditions that can create

opportunities for conflict to arise. They may not directly cause conflict to arise but these

conditions are necessary for conflicts to surface.

There are five conflict handling intentions:

1. Competing

2. Collaborating




3. Avoiding

4. Accommodating

5. Compromising

These intentions provide guideline to the parties in conflict to adopt certain course of action.

what are the antecedent conditions?

The word "Trivial" means of little worth,value or importance.

"Antecedent conditions" refer to the preceding conditions being applied after some events or

occurence. These are actually the conditional elements.

What is meant by this that political behavior can circumvent the lack of organizational power?

Also Explain zero sum allocation?

The answer to the first part of your question is that, as you know that Organizational Power

which is more often known as the Legitimate Power is derived by a person because of his/her

formal position in an organization where he/she works.

For example, If Mr. Aslam is the Director (Finance) of an organization, then the power exerted

by Mr. Saleem on the employees of the Finance Department is simply because he is the director

of this particular department.

Now, „political behavior‟ is any action by a person which is aimed to attain power or simply to

influence decisions. And, the term „circumvent‟ simply means to „bypass‟ or „ignore‟ something.

Now, by examining the whole phrase “political behavior can circumvent the lack of

organizational power”, it simply means that when the different positions in an organization (from

which the organizational/legitimate power is derived) are not clearly defined then employees of

that organization ignore the formal reporting channels of different positions and do certain

actions which can be termed as political behaviors.

For example, in an organization, there are 3 positions namely Manager (Finance), Deputy

Manager (Finance), and Assistant Manager (Finance). The reporting channel in that company is

that Assistant Manager (Finance) reports to Deputy Manager (Finance) who then reports to




Manager (Finance). And it is not clearly mentioned in the company‟s policy that the Assistant

Manager (Finance) would first request the Deputy Manager (Finance) for a leave who will then

forward the leave request to the Manager (Finance), and assume that the Manager (Finance) has

the authority to grant leave. Then in this case the Assistant Manager (Finance) may bypass or

ignore the Deputy Manager (Finance) and ask the Manager (Finance) directly for favour in leave.

Now, the second part of your question is about “zero-sum allocation” which is also known as

Zero-Sum rewards. Zero-Sum is that situation in which two entities cancel the effect of each

other to give a zero. For example, someone says that you have 3 good qualities in your

personality, but the same person also highlights your 3 bad qualities, then to sum it, your good

qualities and bad qualities cancel the effect of each other to form a „zero‟, this is zero-sum effect

or zero-sum allocation.

In Organizational Behavior, we say that Zero-Sum Allocations is a factor that contributes to

Political Behavior. For example, when an employee Mr. Naveed is rewarded, he will feel happy,

but when he is assigned a burden of duties, and if that rewards and additional duties are assumed

by Mr. Naveed to be some what equal, it will create a „zero-sum effect‟ and Mr. Naveed will not

be motivated, and he will tend to engage in political behaviors to reduce those additional duties

or increase reward, because he will think that the previous reward was not enough when

compared with the additional duties.


Difference between "compromising and collaboration style".

Compromising is the reaction of a conflict where both parties reach to mutually acceptable

solution by achieving only a part of his or her objectives. This style is appropriate in situations

where speedy solution is more important than to find the best solution.

Collaboration is the reaction of the conflict in which both parties work together to achieve their

objectives. It is appropriate in situations where commitment is highly desirable.




360-degree feedback

360-degree feedback, also called 'multi-rater feedback', is employee development feedback. In

360-feedback, feedback is gathered from subordinates, managers, peers as well as person

himself. In some cases external factors like customers or suppliers are also involved in feedback.

Opportunity Network

Influential networks are very important for every person as they bring different career

opportunities for him. Therefore the group of high-achievers and influential people that can be

helpful for a person in his career development is called opportunity network.

Reinforcement theory

Reinforcement theory is the process through which the behavior of an individual can be shaped

by controlling the outcomes of a behavior. In this theory combination of rewards and/or

punishment is used to strengthen desired behavior or eliminating undesirable behavior.

Positive reinforcement means following a response with something pleasant. For example if a

sales man makes high sales, he will get a commission. Or if any employee work hard and do a

good job then he will get a bonus or promotion.

Negative reinforcement means following a response by the termination or withdrawal of

something unpleasant. For example for a student negative reinforcement is to get “F” grade in

exams.

Punishment is causing an unpleasant condition in an attempt to eliminate an undesirable

behavior. For example: Pay reduction for lateness.

Extinction When the behavior is not reinforced, it tends to gradually be extinguished. For

example if a child is conducting an undesirable behavior then just ignore him when he will find

no response then he will ultimately leave it.




Political behavior better for the organization

Organizational politics have both positive and negative effects. The ethical use of political power

can motivate people to work together to accomplish common goals that provide overall benefits

to both individuals and organizations. But, the use of political power for personal objectives may

benefit individuals only and in long-run can badly effect trust, loyalty and commitment of

employees.


Maintenance roles

Maintenance role deals with building positive relationships within a group. People who take on

maintenance roles include those who encourage quite members to participate or try to neutralize

a tense situation. For example a leader who inspires group members to cooperate or injects

humor at tense or boring time.

Bias

Bias refers to inclination, tendency or preference towards something which affects the balanced

judgment. It can be either in favor or against any person, thing or group in comparison with

another. It leads to rash decisions and discriminatory actions on our part.

In-group Bias

If a group manager supports his group only, it can be termed as “In-group Bias”, which is a

phenomenon of in-group favoritism and preference for the members within one‟s group over

those outside

Difference between a manager & coalitions




Managers are individuals who work in an organization and get things done thorough other

people. They make decisions, allocate resources and direct the activities of others to attain goals.

Coalition is an agreement or treaty between individuals and groups , during which they

cooperate in joint action, each in their own self interest, getting forces together for a common

cause. This alliance may be temporary or a matter of convenience.


What is Legitimate Power ?

Legitimate Power refers to the power which is vested in a particular position in the formal

hierarchy of a formal group or organization. This power is accepted by the members of the

organization or group and expected to be followed by all within authority of the particular

position.

For Example: A Production manager has the power to direct his subordinates to produce 400

items a day. The manager‟s position gives him the authority or power to order his subordinates

with his sphere of authority to act accordingly.


hard work or smart work which is more successful

The smart work and the hard work are correlated and equally important while conducting any

sort of project. If you are working very hard towards some stuff with a wrong logic then it is of

no use and vice versa. Consequently, you should work hardly with smart ideas. Both are

important for achieving success in life.

Difference b/w Job enlargement & Job enrichment




Job enlargement is increase of the job‟s tasks (activities). For example: In making a wooden

table different tasks are involved which are completed by a team of skilled workers like cutting

of wood, shaping wooden pieces, joining them and painting. Suppose one of the workers

responsible for cutting of wood is assigned additional tasks of shaping wooden pieces and then

joining them in shape of table. This is job enlargement.

Job Enrichment is the addition to a job of tasks that increase the amount of employee control or

responsibility. For example a company may decide to cross train its HR generalists to use the

HRIS so they can run their own reports. Rather than submitting requests and waiting for

someone else to run the reports, they have the additional control over their job of being able to

get the reports whenever they need them.

Power is the ability to influence other person. It can be personal power or positional power while

authority is the legitimate power or the right to influence others.


virtual structure

An organization that uses telecommunications and information technology to conduct its

operations so that it‟s geographically dispersed employees and operations can be managed and

collaborated properly. Virtual University of Pakistan is an example of Virtual Structure.

social class shapes thoughts and actions in organizations

Social class is the level of economic income or the status of a person and his perceived rank

within the social hierarchy of society. People from different social class have different

assumptions and beliefs and act accordingly. These differences if not managed properly can

create conflicts in organizations and resultantly cause decrease in overall productivity of

organization. Therefore management should consider these facts while developing the culture of

the organization as its culture is a source of shaping behaviors of employees according to the

requirements of organizations.

Organizational Design




Organizational Design can be defined as a formal process of integrating organizational roles and

structure in such a way that it supports the organizational strategies. It is arrangement of process,

structure, metrics and rewards in effective way. It helps in understanding power relations and

functions.

Job Evaluation

Job Evaluation is a technique to rank jobs in an organization on the basis of the duties and

responsibilities assigned to the job. This term is used to evaluate or measure the job contents like

the complexity of jobs, importance of job responsibilities, its critical value within the

organization etc. For example the worth of regional manager is more than the peon of that

organization as the task related to regional manager is of more significance than that of peon, in

such way different jobs within an organization are evaluated & accordingly compensated.


What is Unity of Command

Unity of Command states that “a subordinate should have only one superior to whom he or she is

directly responsible”.

As per the situation you are talking about, if a person is reporting to two managers for different

matters. Such reporting mechanism refers to dual chain of command applied in Matrix structures,

which negates and breaks “Unity of Command”.

Deliberately Structured means decision made on design of the working of an organization at

micro and macro level and design of working of departments and divisions as per requirements.

As a structure of educational institute may vary from the structure of a manufacturing firm, so

structures are deliberately designed as per specifications and requirements of the organizations.

The mechanistic organizations are those organizations that have formal rules and regulations

systems, centralized decision making authority, and high worker specialization. Like

bureaucratic or government organizations.

The organic organizations also called flexible management system as they show less rigidity, low

formalization and decentralized decision making authority.




For further details watch lecture no 30.

Accountability means that people with authority and responsibility are subject to reporting and

justifying task outcomes to those above them in the chain of command. Accountability is often

built into the organization structure so that people may know they will be held accountable for

specific task.

Dual chain of command is opposite to unity of command. It is used in matrix structure where a

person has to report to more than one supervisor. One of them can be a functional head or other

can be from project head.

Allocation of specialist: In Matrix structure specialist from different functions or tasks are

combined to work on a project. In this way the project is done by the specialists that can ensure

high level of quality and speed


Difference between downsizing and rightsizing.

Downsizing is to reduce the size of a business or organization, especially by cutting the work

force. It becomes important to reduce organizational expenditures which are exceeding from the

available resources. Although downsizing creates de-motivation among employees but

sometimes organizations have to adopt it to reduce its cost.

Rightsizing is corporate restructuring with the goal of reducing costs and improving efficiency

and effectiveness. Rightsizing can involve both increasing or reducing a company's workforce to

the point where the number of employees remaining is consider to be "right" for the company's

current condition.

Selecting job

Selecting job candidate is one of the functions of HRM. In recruitment process a pool of eligible

candidate is generated. And after interviewing the most appropriate person is selected for a

particular job. This process is called “selecting job candidate.”





Job Description is a written list pertaining to the tasks, responsibilities, account-abilities

functions, specifications and qualifications required for any position. It is important document

usually narrative in nature explaining whom to report, salary range and hierarchical position of

the job in organization.

Job specification determines employee characteristics (like age, qualification, gender etc) to

perform a particular job, reporting relations and working conditions.

The reward package offered to an employee for his/her performance on the relative position

within an organization is termed as a compensation package. It includes both monetary & non-

monetary rewards.

Performance appraisal may be defined as a structured & formal method to evaluate employees'

performance to check whether the set goals are met or not.

Job Description is a written list pertaining to the tasks, responsibilities, accountabilities,

functions, specifications and qualifications required for any position. It is important document

usually narrative in nature explaining whom to report, salary range and hierarchical position of

the job in organization.


Compensation is the total of all rewards/incentives provided to an employee for his/her services.

It can be given in monetary or nonmonetary terms. Direct monetary compensation refers to the

salaries, wages, commissions, bonuses and indirect monetary compensation is paid in the form of

benefits such as health care facilities, life insurance, employee stock option plans, family and

medical leave etc.`




Incentives are the part of compensation for example individual incentives include piece rate

incentives, commissions and bonuses, skill based incentives and pay raises. Other than individual

incentives, some times organizations give group incentives such as gain sharing and profit

sharing.

Lateral skill path is the movement of an employee to another equivalent designation. It provides

opportunities to develop new skills and employees are rewarded by increased job challenge

rather then pay increments. For example assistant admin officer can be switched to assistant HR

officer. Where his designation will remain same but he may learn a different set of skills or

experience.

The Development Phase

In effective career development, there are three phases which are:

• The Assessment Phase

• The Direction Phase

• The Development Phase

In development phase practical actions are taken in order to increase the skills and capabilities of

an employee for any possible future opportunity. In this phase emphasis is given on the self

improvement and growth of the employees.

To achieve this goal, the following techniques are used:

• Tuition assistance programs are used to help the employees to plan there careers and provided

with enough information so that they have better choices in choosing the career.

• Job rotation is applied to broaden the horizon and experience of the individuals.

• Mentoring and coaching is done by the senior employees to provide guidance and assistance.





Job Incumbents is used for a person who is currently holding a job or position.

Demotion means a reduction in the rank, status, or position of somebody. Demotion can be

because of organizational politics, lack of educational requirements or lack of appropriate

behavior or any unethical or immoral activities within the premises of the organization.

The halo effect refers to a cognitive bias whereby the perception of a particular trait is influenced

by the perception of the former traits in a sequence of interpretations. When we consider a

person good (or bad) in one category, we are likely to make a similar evaluation in other

categories.

Stereotyping is judging someone on the basis of perception of the group to which he or she

belongs. For example people usually perceive about Blacks that they are good athlete and

Europeans like privacy etc.

Vertical/Horizontal Differentiation

The mechanistic organizations are those organizations that have formal rules and regulations

systems, centralized decision making authority, and high worker specialization. Like

bureaucratic or government organizations. Mechanistic structure is vertically designed and a

strict chain of command is observed. Horizontal differentiation is done among the same units or

functions of an organization. It is based on the education, experience and training of employs and

the nature of jobs they perform. While vertical differentiation is about the number of hierarchical

levels that an organization has.

Culture

Culture is a set of key values, assumption, beliefs, understanding and norms that members of an

organization share. It is a pattern of shared assumptions about how things are done in the

organization. This pattern is invented or learned as organizational members cope with internal

and external problems and than taught to new members as the correct way to perceive, think and

feel in relation to those problems. Material symbols: A symbol may be an object, act or event




that conveys special meaning to others. Rite, ceremonies and stories are symbols. Other symbols

are physical artifacts of the organization. These are very important as they focus attention on a

specific item and its meaning. For example, when a CEO gives increment to innovative and

creative employees he emphasizes the importance of innovation in his organization.


Radical change and Revoluntary change

When a firm adopts or brings sudden and major changes in its processes or procedures, it is

called radical change. For example in past all the production of firms was done through manual

processes and through labor force, but with the advent of technology some organizations have to

change their ways of doing business on immediate bases to remain competitive or ahead of the

competitors.

Define dominant culture and subculture

The set of key values, assumptions, beliefs, understandings and norms that members of an

organization share is called its culture. The overall culture of an organization is its dominant

culture. While dominant culture has many subcultures. Culture is a pattern of shared assumption

about how things are done in an organization. This pattern is invented or learned as

organizational members cope with internal and external problems and then taught to new

members as the correct way to perceive, think and feel in relation to those problems.

Sub cultures are the mini-cultures within an organization that are developed and shared by the

members of a team, function or a department. It is the combination of common goals, problems

and experiences.

Rituals are organized and planned activities that make up a special event and are often conducted

for the benefit of an audience. Company managers can schedule rites or ceremonies to provide

dramatic examples of what the company values. These are special occasions that reinforce

valued accomplishments, create a bond among people by allowing them to share an important




event. For example one of the prestigious pharmaceutical companies of Pakistan sends its best

sales person on foreign tours on achieving annual sales goals. These kinds of rituals strengthen

and reinforce employee‟s commitment to the goals of the organization.


Power

Power is a person‟s potential to influence other people‟s behavior or to resist the influence of

others while empowerment is the delegation of power or authority to subordinates in an

organization.

What is Business process reengineering ?

Business process reengineering is a basic concept of Organizational Development, it helps the

organization to fundamentally rethink that how they redesign their processes to support their

mission and reduce cost.

Following are some reasons that why organizations need process reengineering?

When organizations need to improve their customer services

when they need to reduce their operational costs

to be more innovative

to become a world class competitor

Business leader organizations are becoming bolder in using this technology to support their

mission and to keep their competitive position high.




What is Candidate order error?

Candidate order error is an error of judgment on the part of interviewer due to interviewing one

or more very good or very bad candidates just before the interview in question. Candidate order

error is same like Contrast Effect.

Candidate order error means the order in which you see the applicants affect how you rate them.

For example at time managers evaluate an average candidate with high scores after evaluating

many unfavorable candidates, because in contrast to those unfavorable candidates that average

candidate looks much better than he actually is. So this error of judgment is called contrast effect

or candidate order error.


Bureaucratic structure,

In Bureaucratic structure, highly routine operating tasks are achieved through specialization,

formalized rules and regulations. In it, tasks are divided into functional departments, there is

centralized authority in place, span of control is narrow and decisions are made in a formal chain

of command. It is used in the environments, where there is high complexity. The disadvantage

associated with it is that it is very rigid and very slow in adoption of the changing environment.

The role of 360 degree feedback in the measurement of performance

360 feed back is a multisource or multi rater feed back , in which an employee get feed back

from his / her supervisor, peers, coworkers and also from his or herself .

360 Feedback as a Development Tool to help employees recognize strengths and weaknesses and

become more effective.

360 feedback measures behaviors and competencies

360 assessments provide feedback on how others perceive an employee

360 feedback concentrates on skills such as listening, planning, and goal-setting




A 360 evaluation focuses on subjective areas such as teamwork, character, and leadership

effectiveness

how can we asses interpersonal skills of interviewee

As we know that interpersonal skills are the skills use to interact with others, these are referred as

communication skills, people skills or soft skills, how we deal with others can greatly influence

our professional and personal life.

To assess the interpersonal skills of an interviewee, most of the time professional interviewers

gave situations and ask him how he or she responded in that situation.

e.g. they may use situations like this….

Tell me about a time when you had to work closely with a coworker whom you disliked or with

whom you had trouble working. What did you do to make the relationship work so you could

succeed for your company?

Tell me about a time when you disagreed with the actions or decisions of your manager or

supervisor. How did you approach the situation? Was the situation resolved to your satisfaction

or did nothing change?

A good candidate may answer that how hedeveloped an effective relationship with his

coworkers and peers to resolve the situation.

What are Baby Boomers?

Baby Boomers are the individuals who born after world war-II, and retirement is a point when a

person stops employment copmletely, and gets pension benefits, and retiring of baby boomers

mean that people who born after world war-II, majorly in year 1946 are reached to the age to




leave their employments completely, most of these people brought revolutionary change in

every aspect of life , but now their physical conditions (age factor) doesnot allow them to work

more.


Difference between Salary and Compensation

Compensation refers to the sum of both monetary and non-monetary rewards provided to an

employee by an employer.

In Other words, it can also be defined as, the gross earning (salary) including all benefits and

perks that an employee gets for the service rendered. It includes bonuses, vacation, sick leave,

stock options as well as non-cash benefits and retirement plans.

Salary is part of compensation and refers to a the fixed amount of money paid to an employee

weekly, bi-weekly or monthly for work performed.

Difference between Gratuity & Provident Fund

Gratuity and provident fund are both employee benefit funds, the major difference is provident

fund is the equal contribuition from both employee as well as from employer side, while gratuity

is only paid by the employer at the end of employment contract of the employee, for provident

fund a specific amount or percentage of total salary of employee is deducted every month and

the same propotion is added from employer side, and let this amount to be collected in an

account and given to empolyee at the end of employment contract. while gratuity is total

contribution from employer which is mostly equal to employee's last pay drawn multiplied by

number of year worked in that organization.




how we can save from stress or management stress

There are two approaches through which we can manage the stress carefully.

One is individual approach in which an employee himself tries to manage the stress with the help

of time management techniques, physical exercise, relaxation, and expanding social network.

The second one is organizational approach in which the organization tries to manage the stress

by improved personal selection, job placement, training, redesigning job and trough corporate

wellness programs.


What is Overt resistance?

Overt resistance means a resistance that is open or not hidden, for example if any change comes

in organization the employees raise thier voices against it, is called overt resistance

Implicit Resistance means a resistance which apparently employees donot show if any change

comes in the environment or policies of organization,but they reduce the speed of work, make

mistakes, increased absenteeism due to " Sickness" and hence imlicit resistance is more difficult

to recognize.

Immediate Resistance means a resistance which higher management face when they annouce

any change in organization.

Deferred Resistance means a resistance which does come on surface immediately..it takes time ,

also called delayed resistance.

Scanlon plan




Scanlon plan is a widely used form of gain sharing. It involves employee participation in

reducing labor costs. The two main features are a system of departmental and plant wide

screening committees to evaluate and implement employee cost saving suggestions and sharing

labor cost savings with employees as an incentive.

Stress is considered good when it becomes a cause of improving performance/productivity. For

example sometimes meeting or engaging in a challenge can be stressful, but this can lead to

maximum performance.

Contemporary change

There are few forces for change, which trigger the managers to incorporate changes accordingly

to be in competition. They are also termed as contemporary change issues/problems managers

are facing these days because of the speed of changes occurring in them.

The factors/forces are:

• Nature of the workforce/human resources.

• Innovations • Technology

• Competition in the market (Global competitions, mergers, growth of e-commerce)

• Economic shocks

• World politics

• Social trends

Zero sum allocation is an approach in which the reward “pie” is treated as fixed. And the

allocation is made in such a way that a gain of a person or group has to come at expense of

another person or group. Whenever the organization‟s culture emphasis on zero-sum or win/lose

approach to reward allocations, it motivates employees more towards politics in an organization.

For Example: An amount of Rs.15000 is to be distributed among 5 employees. If anyone gets

more than Rs.3000, it‟ll mean that he/se has taken share of someone else. It‟ll surely annoy other

employees getting share less than Rs.3000 and they will motivated to have political behavior.




Devil's Advocacy is an approach in which an individual or group is appointed to critique a

proposed group of action and identify problems to consider before the decision is final.”

For Example: In group meetings, Mr. A is appointed as Devil‟s advocate to point out the short

falls in the decision they are about to take. And tell them about the possible changes which can

make it a near-to-perfect decision. .

Symptom can be defined as “any indication or sign of the existence of something”. We can say

that it is a subjective evidence of any phenomenon to be happened.

Stress can be recognized by the following three symptoms:

• Physiological symptoms

• Psychological Symptoms

• Behavioral Symptoms

Physiological symptoms include increased heart and breathing rates, increased blood pressure

and headaches.

How the stress can be recognized in organization

Stress can be recognized by the following three symptoms:

Physiological symptoms: They include increased heart and breathing rates, increased blood

pressure and headaches.




Psychological Symptoms: They include job dissatisfaction, tension, anxiety, boredom, irritability

and procrastination.

Behavioral Symptoms: Stress can also be recognized by the behavioral symptoms like absence

from job, changes in productivity level, changes in eating habits, increase in smoking or taking

any other drugs, sleep disorders and speaking rapidly.


Formalization

Formalization refers to the degree to which jobs within the organization are standardized and the

extent to which employee behavior is guided by rules and procedures. If a job is highly

formalized, then the person doing that job has a minimum amount of discretion over what is to

be done, when it's to be done, and vice versa. The degree of formalization can vary widely

between organizations and even within organizations. For instance, at a newspaper publisher,

news reporters often have a great deal of discretion in their job. They may pick their news topics,

find their own stories, research them the way they want and write them up usually with minimum

guidelines. On the other hand, the competitors and typesetters who lay out the newspaper pages

don‟t have that type of freedom. They have constraints- both time and space- that standardized

hoe they do their work.

Stress

Stress is considered good when it becomes a cause of improving performance/productivity and

most of the time stress is productive at initial stage because when stress is prolonged it creates

negative impact. For example sometimes meeting or engaging in a challenge can be stressful, but

this can lead to maximum performance.

Ethical culture can be developed in an organization by the management by adopting the

following steps:

• Establishing fully enforceable code of conduct within organization.




• Initiating and conducting ongoing training programs for employees to let them know the

expectations of them and better understanding culture within.

• Ensuring regular communication between all.

• Establishing anonymous reporting hotline to report any misconduct.

• Ensuring the reinforcement of code of conduct and actions is taken in case of non-conformity.

• Rewarding the employees who are living up to the standard.

When one company takes over another and clearly establishes itself as the new owner, the

purchase is called an acquisition. From a legal point of view, the target company ceases to exist,

the buyer "swallows" the business and the buyer's stock continues to be traded.

In the pure sense of the term, a merger happens when two firms agree to go forward as a single

new company rather than remain separately owned and operated. This kind of action is more

precisely referred to as a "merger of equals". The firms are often of about the same size. Both

companies' stocks are surrendered and new company stock is issued in its place. For example, in

the 1999 merger of Glaxo Wellcome and SmithKline Beecham, both firms ceased to exist when

they merged, and a new company, GlaxoSmithKline, was created.

Downsizing is basically of two types i-e retrenchment and layoffs

Retrenchment means the reduction of expenditures in order to become financially stable.

Layoff is the temporary suspension or permanent termination of employment of an employee or

(more commonly) a group of employees for business reasons, such as the decision that certain

positions are no longer necessary or a business slow-down or interruption in work.

but most of the time downsizing refers to the permanent reduction of a company's workforce and

is generally associated with corporate reorganization, or creating a "leaner, meaner"

company.Downsizings such as also commonly called reorganizing, reengineering, restructuring,

or rightsizing. Regardless of the label applied, however, downsizing essentially refers to layoffs

that may or may not be accompanied by systematic restructuring programs, such as staff




reductions, departmental consolidations, plant or office closings, or other forms of reducing

payroll expenses.


Correcting Poor Performance

It is very important for the success of an organization to identify the poor performance and

correct and align it according to the goals and objectives of organization. It is the responsibility

of a manager to guide his subordinates regarding the criteria of required performance. An

employee should be properly informed about the expected performance and should be trained to

achieve that milestone.

Zero-Sum condition refers to a situation in which a gain is offset by an equal loss.

Or

A situation in which two entities cancel the effect of each other to give a zero.

Span of Control is a term used for the number of subordinates a manager is expected to

supervise.

Or

The number of subordinate employees directly accountable to a manager.

A wide span of control reduces expenses, but requires more management skill and may reduce

effective feedback.

Chain of command refers to the order in which power and authority in an organization is

exercised and delegated from top management to every employee at every level of the

organization.




Stereotype refers to a general view of people about a specific group or individuals. In other

words, It is a popular belief about specific social groups or types of individuals held by others in

general.

EPM Supports Best Practices

EPM is an abbreviation of Employee Performance Management. It includes a variety of HR

processes e.g., goal management, performance appraisals, multi-rater/360 feedback,

compensation management, workforce & succession planning, development planning and

training. When these processes are connected correctly in an enterprise they help employees to

understand their roles, overall strategic business objectives, expectations in their day-to-day

activities based on the business objectives and performance success as viewed by the

management, peers, customers, etc.

It is one of the advantages of EPM that it supports best practices, due to which we can manage

performance of an employee more realistically and effectively


Organizational Design and Structure

Organizational Design and Structure are processes for improving the probability that an

organization will be successful.

Organizational Structure emphasizes on systems and processes. It is the formal system of task

and reporting relationships that controls,coordinates and motivates the employees to cooperate

each other ,so that the objectives of organization can be achieved.

While Organizational design emphasizes on management and leadership styles. It is the

selection and management of various dimensions of structure and culture to achieve goals. for

example authoritative style of management or bureaucratic style of management.

Zero-Sum Condition refers to a situation in which a gain is balanced by an equal loss.




Inertia refers to condition in organization when change is introduced and people are reluctant to

acept the change. Then whole of the organization comes to stand still and static mode. It is said

to be a tendency to remain in a fixed condition without change and disinclination to move or act

upon the change.

Antecedent condition is the the pre-condition or requirements for some thing. We can say : a

preceding event, condition, or cause

Coaching is "a process which enables learning and development to occur and help in improving

performance."

Counseling is a support process in which a counselor holds face to face talks with another person

to help him/her solve a personal problem. It also help improve that person's attitude, behavior, or

character. We can say that it is an assistance especially provided by a professional for the

resolution of personal difficulties/problems.

Burnout refers to a psychological condition in which one experience long-term exhaustion and

diminished interest. It is a state of emotional, mental, and physical exhaustion caused by

excessive and prolonged stress. It occurs when you feel overwhelmed and unable to meet

constant demands.


"Learned helplessness




The American psychologist Martin Seligman's was the first person to conduct foundational

experiments and the theory of learned helplessness in 1967 at University of Pennsylvania.

Learned Helplessness is a condition or state of mind in which a person feels lack of control on

the situation thus behaves in a helpless manner. In such situation, this inaction can result in

overlooking any opportunity arising to avoid unpleasant circumstances and any opportunity for

change or relief. This theory is connected with Clinical Depression and related mental illnesses,

in which one perceives lack of control over the outcome of any situation.

Demographics or demographic data refers to characteristics of human population. Demographics

include human characteristics like age, gender, race, disabilities and income etc. These types of

data are used in various researches of marketing, sociology and public policy making.

Geographic is from Geography which refers to the study of earth and distribution of life on earth.

It also includes human life and effects of human activity. Or

Geography is concerned with topography of a specific region.

Or

It is the physical characteristics, especially the surface features of any area.

Demographic influence refers to influence due to the demographic factors like age, race, gender

etc on any other thing.

There are three types of trust, namely: Deterrence-based trust, Knowledge-based trust,

identification-based trust.

Deterrence-Based Trust is based on fear of reprisal if the trsut is violated.




Knowledge -Based Trust is based on behavioral predictability that comes from a history of

interaction

Identification-Based Trust is based on a mutual understanding of each other's intentions and

appeciation of each other's wants and desires.

Radical Change refers to the major changes brought in the overall operations of an organization.

Incremental Change refers to changes brought with the passage of time. In this, small changes

are made from time to time.

Reactive Change refers to changes brought as a result of changes in the external or internal

environment.

Anticipatory Change refers to anticipate change as per changes by the compititors to stay ahead

in competition.

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