Set 1 Q1> Define emotional intelligence. Explain Golemans model of emotional intelligence.

Ans: Emotional intelligence is the capacity for recognizing our own feelings and those of others, for motivating ourselves, for managing emotions well in ourselves and in our relationships. Daniel Goleman and the Hay Group have identified a set of competencies that differentiate individuals with Emotional Intelligence. The competencies fall into four clusters:

Self-Awareness: Capacity for understanding ones emotions, ones strengths, and ones weaknesses. Self-Management: Capacity for effectively managing ones motives and regulating ones behavior. Social Awareness: Capacity for understanding what others are saying and feeling and why they feel and act as they do. Relationship Management: Capacity for acting in such a way that one is able to get desired results from others and reach personal goals. The most popular and accepted mixed model of emotional intelligence is the one proposed by Goleman (1995). He viewed emotional intelligence as a total of personal and social competences. Personal competence determines how we manage ourselves, whereas social competence determines how we handle our interpersonal relationships. Personal competence It comprises of three dimensions of emotional intelligence, such as, self-awareness, selfregulation and motivation. Self-awareness is the ability of an individual to observe him/herself and to recognize a feeling as it happens (Goleman, 1995). The hallmarks of this ability are selfconfidence, self- assessment and openness to positive criticism. Self-regulation is the ability to control emotions and to redirect those emotions that can have negative impact. Trustworthiness, integrity, tolerance of ambiguity and attitude to accept change are some characteristics of this ability. Motivation is the ability to channelize emotion to achieve a goal through self-control and by moderating impulses as per the requirement of the situation. The people who have this ability are optimistic and committed towards organizational as well as individual goals. Social competence It comprises of two dimensions namely, empathy and social skills. Empathy is the ability to feel and get concerned for others, take their perspective and to treat people according to their emotional reactions. People with this ability are experts in generating and motivating others. Social skills are the ability to build rapport and to manage relationships with people. People having this skill are very effective in persuasiveness and team management. Social skill is the culmination of all other components of emotional intelligence assuming that people can effectively manage social and work relationships only when they can understand and control their own emotion and can emphasize with the feelings of others.

Figure: Golemans emotional intelligence model (1995)

Q2> What are the hindrances that we face in perception? Ans: Individuals have a tendency to use a number of shortcuts when they judge others. An understanding of these shortcuts can be helpful toward recognizing when they can result in significant distortions. 1. Selective Perception Any characteristic that makes a person, object, or event stand out will increase the probability that it will be perceived. It is impossible for an individual to internalize and assimilate everything that is seen .Only certain stimuli can be taken in selectively. Selectivity works as a shortcut in judging other people by allowing us to speed-read others, but, not without the risk of drawing an inaccurate picture. The tendency to see what we want to see can make us draw unwarranted conclusions from an ambiguous situation. 2. Halo Effect The halo effect occurs when we draw a general impression on the basis of a single characteristic. For example, while appraising the lecturer, students may give prominence to a single trait, such as, enthusiasm and allow their entire evaluation to be tainted by how they judge the instructor on that one trait which stood out prominently in their estimation of that person. Research suggests that it is likely to be most extreme when the traits to be perceived are ambiguous in behavioral terms, when the traits have moral overtones, and when the perceiver is judging traits with which he or she has had limited experience. 3. Contrast Effects Individuals do not evaluate a person in isolation. Their reaction to one person is influenced by other persons they have encountered recently. For example, an interview situation in which one sees a pool of job applicants can distort perception. Distortions in any given candidates evaluation can occur as a result of his or her place in the interview schedule. 4. Projection This tendency to attribute ones own characteristics to other people which is called projection can distort perceptions made about others. When managers engage in projection, they compromise their ability to respond to individual differences. They tend to see people as more homogeneous than they really are. 5. Stereotyping Stereotypingjudging someone on the basis of our perception of the group to which he or she belongs. Generalization is not without advantages (Hilton & Hippel, 1996). It is a means of simplifying a complex world, and it permits us to maintain consistency. The problem, of course, is when we inaccurately stereotype. In organizations, we frequently hear comments that represent stereotypes based on gender, age, race, ethnicity, and even weight. From

a perceptual standpoint, if people expect to see these stereotypes, that is what they will perceive, whether or not they are accurate. 6. First-impression Individuals place a good deal of importance on first impressions. First impressions are lasting impressions. We tend to remember what we perceive first about a person, and sometimes we are quite reluctant to change our initial impressions. First-impression error means the tendency to form lasting opinions about an individual based on initial perceptions. Primary effects can be particularly dangerous in interviews, given that we form first impressions quickly and that these impressions may be the basis for long-term employment relationships.

Q3> Describe the bases of power. Ans> Power can be categorized into two types: Formal and informal i. Formal Power: It is based on the position of an individual in an organization. Formal power is derived from either ones ability to coerce or reward others or is derived from the formal authority vested in the individual due to his/ her strategic position in the organizational hierarchy. For example, a manager may threaten to withhold a pay raise, or to transfer, demote, or even recommend the firing of a subordinate who does not act as desired. Such coercive power is the extent to which a manager can deny desired rewards or administer punishments to control other people. The availability of coercive power also varies across organizations. The presence of unions and organizational policies on employee treatment can weaken this power base significantly. Formal power may be categorized into four types which are as follows: ii. Coercive Power: The coercive power base is being dependent on fear. It is based on the application, or the threat of application, of physical sanctions such as the infliction of pain, the generation of frustration through restriction of movement, or the controlling by force of basic physiological or safety needs. In an organization one can exercise power over another if they have the power to dismiss, suspend, demote another assuming that the job is valuable to the person on whom power is being unleashed. iii. Reward Power: The opposite of coercive power is reward power. Reward power is the extent to which a manager can use extrinsic and intrinsic rewards to control other people. Examples of such rewards include money, promotions, compliments, or enriched jobs. Although all managers have some access to rewards, success in accessing and utilizing rewards to achieve influence varies according to the skills of the manager. iv. Legitimate Power: The third base of position power is legitimate power, or formal authority .It stems from the extent to which a manager can use subordinates internalized values or beliefs that the boss has a right of command to control their behavior. For example, the boss may have the formal authority to approve or deny such employee requests as job transfers, equipment purchases, personal time off, or overtime work. Legitimate power represents a special kind of power a manager has because subordinates believe it is legitimate for a person occupying the managerial position to have the right to command. The lack of this islegitimacy will result in authority not being accepted by subordinates. Thus this type of power has the following elements: It represents the power a person receives as a result of his/her position in the formal hierarchy. Positions of authority include coercive and reward powers. Legitimate power, however, is not limited to the power to coerce and reward. It encompasses the acceptance of the authority of a position by members of an organization.

v. Information Power: This type of power is derived from access to and control over information. When people have needed information, others become dependent on them. (For example, managers have access to data that subordinates do not have). Normally the higher the level, the more information would be accessed by managers. vi. Personal Power: Personal power resides in the individual and is independent of that individuals position. Three bases of personal power are expertise, rational persuasion, and reference. Expert power is the ability to control another persons behavior by virtue of possessing knowledge, experience, or judgment that the other person lacks, but needs. A subordinate obeys a supervisor possessing expert power because the boss ordinarily knows more about what is to be done or how it is to be done than does the subordinate. Expert power is relative, not absolute. However the table may turn in case the subordinate has superior knowledge or skills than his/ her boss. In this age of technology driven environments, the second proposition holds true in many occasions where the boss is dependent heavily on the juniors for technologically oriented support. Rational persuasion is the ability to control anothers behavior, since, through the individuals efforts, the person accepts the desirability of an offered goal and a viable way of achieving it. Rational persuasion involves both explaining the desirability of expected outcomes and showing how specific actions will achieve these outcomes. Referent power is the ability to control anothers behavior because the person wants to identify with the power source. In this case, a subordinate obeys the boss because he or she wants to behave, perceive, or believe as the boss does. This obedience may occur, for example, because the subordinate likes the boss personally and therefore tries to do things the way the boss wants them done. In a sense, the subordinate attempts to avoid doing anything that would interfere with the pleasing boss subordinate relationship. Followership is not based on what the subordinate will get for specific actions or specific levels of performance, but on what the individual represents a path toward lucrative future prospects. Charismatic Power is an extension of referent power stemming from an individuals personality and interpersonal style. Others follow because they can articulate attractive visions, take personal risks, demonstrate follower sensitivity, etc.

Q4> Explain sensitivity training. Ans> This approach evolved from the group dynamics concept of Kurt Lewin and the first sensitivity training session was held in 1946 in State Teachers College, New Britain, USA. Since then, it spread to numerous training centers in USA and other countries. Sensitivity training is a small-group interaction process in the unstructured form which requires people to become sensitive to others feelings in order to develop reasonable group activity. The objectives of sensitivity training are as follows: 1. To make participants increasingly aware of, and sensitive to, the emotional reactions and expressions in themselves and others. 2. To increase the ability of participants to perceive, and to learn from, the consequences of their actions through attention to their own and others feelings. 3. To stimulate the clarification and development of personal values and goals consonant with a democratic and scientific approach to problems of personal and social decisions and actions. 4. To develop achievement of behavioral effectiveness in participants. 5. To develop concepts and theoretical framework for linking personal values and goals to actions consistent with these inner factors and situational requirements. Process of Sensitivity Training: Sensitivity training focuses on small group (T-group) with number of members ranging from ten to twelve. T-groups are designed to provide members with experiential learning about group dynamics, leadership and interpersonal relationships. The basic T-group training or sensitivity training is to change the standards, attitudes and behavior of individuals by using psychological techniques and programs. Based on the sources from where these members are drawn, there may be three types of T-group: stranger-lab, cousin-lab, and family-lab. In the stranger-lab, all participants are from different organizations and they are strangers to each other. In cousin-lab, all participants are from the same organization but from different units.

Q5> Explain the different leadership styles as per Managerial Leadership Grid Theory. Ans> The Managerial Grid was the original name which was the modifications were made by Robert R Blake and Anne Adams Mc Canse. After the modifications it was named as Leadership Grid.

Leadership Grid an approach to understanding a leaders concern for results (production) and concern for people The five major leadership styles specified as per Managerial Leadership Grid Theory: 1. The impoverished style (1, 1). The indifferent Leader (Evade & Elude) In this style, managers have low concern for both people and production. Managers use this style to avoid getting into trouble. The main concern for the manager is not to be held responsible for any mistakes, which results in less innovative decisions. A leader uses a delegate and disappear management style. Since they are not committed to either task accomplishment or maintenance; they essentially allow their team to do whatever it wishes and prefer to detach themselves from the team process by allowing the team to suffer from a series of power struggles. 2. The country club style (1, 9). The accommodating Leader (Yield & Comply) This style has a high concern for people and a low concern for production. Managers using this style pay much attention to the security and comfort of the employees, in hopes that this would increase performance. The resulting atmosphere is usually friendly, but not necessarily that productive. This person uses predominantly reward power to maintain discipline and to encourage the team to accomplish its goals. Conversely, they are almost incapable of employing the more punitive coercive and legitimate powers. This inability results from fear that using such powers could jeopardize relationships with the other team members. 3. The produce or perish style (9, 1). The Controlling Leader (Direct & Dominate) This believes in the authority-obedience. With a high concern for production, and a low concern

for people, managers using this style find employee needs unimportant; they provide their employees with money and expect performance back. Managers using this style also pressure their employees through rules and punishments to achieve the company goals. This dictatorial style is based on Theory X of Douglas McGregor, and is commonly applied by companies on the edge of real or perceived failure. This is used in case of crisis management. People who get this rating are very much task-oriented and are hard on their workers (autocratic). There is little or no allowance for co-operation or collaboration. Heavily taskoriented people display these characteristics: they are very strong on schedules; they expect people to do what they are told without question or debate; when something goes wrong they tend to focus on who is to blame rather than concentrate on exactly what is wrong and how to prevent it; they are intolerant of what they see as dissent (it may just be someones creativity), so it is difficult for their subordinates to contribute or develop. 4. The middle-of-the-road style (5, 5). The Status Quo Leader. (Balance & Compromise) It is Organization man management approach, which believes that the adequate organization performance is possible through balancing the necessity to get out work with maintaining morale of people at satisfactory level. Managers using this style try to balance between company goals and workers needs. By giving some concern to both people and production, managers who use this style hope to achieve acceptable performance. 5. The team style (9, 9). The Sound / Team Leader (Contribute & Commit) This is based on the aspect that work accomplishment is from committed people; interdependence through a common stake in the organization purpose leads to relationships of trust and respect. In this style, high concern is paid both to people and production. As suggested by the propositions of Theory Y, managers choosing to use this style encourage teamwork and commitment among employees. This method relies heavily on making employees feel as a constructive part of the company. This type of person leads by positive example and endeavors to foster a team environment in which all team members can reach their highest potential, both as team members and as people. They encourage the team to reach team goals as effectively as possible, while also working tirelessly to strengthen the bonds among the various members. They normally form and lead some of the most productive teams.

Q6> Mr. Suresh Kumar is the VP- HR of a leading Financial services company. He is having a meeting with Ms. Rejani Chandran leading HR consultant. Mr. Suresh is concerned about creating an environment that helps in increasing the job satisfaction amongst employees. Assume that you are Ms. Rejani, the HR consultant. What suggestions you will give to Mr. Suresh, for creating an environment that increases job satisfaction? Ans> Job satisfaction is the sense of fulfillment and pride felt by people who enjoy their work and do it well. For an organization, satisfied work force ensures commitment to high quality performance and increased productivity. Job satisfaction helps organizations to reduce complaints and grievances, absenteeism, turnover, and termination. Job satisfaction is also linked to a healthier work force and has been found to be a good indicator of longevity. And although only little correlation has been found between job satisfaction and productivity, it has also been found that satisfying or delighting employees is a prerequisite to satisfying or delighting customers, thus protecting the bottom line. Below are the suggestions that as a leading HR consultant I will give to Mr. Suresh, for creating an environment that increases job satisfaction:

Mentally Challenging Work: Employees tend to prefer jobs that give them opportunities to use their skills and abilities and offer a variety of tasks, freedom and feedback on how well they are doing. Under conditions of moderate challenge, most employees will experience pleasure and satisfaction. Personality-Job Fit: People with personality types congruent with their chosen vocations should find they have the right talents and abilities to meet the demands of their jobs; and because of this success, they have a greater probability of achieving high satisfaction from their work. It is important, therefore to fit personality factors with job profiles. Equitable Rewards: Employees want pay systems and promotion policies that they perceive as being just, unambiguous, and in line with their expectations. When pay is seen as fair based on job demands, individual skill level, and industry pay standards, satisfaction is likely to result. Similarly, employees seek fair promotion policies and practices. Promotions provide opportunities for personal growth, more responsibilities and increased social status. Individuals who perceive that promotion decisions are made in a fair and just manner are likely to experience job satisfaction. Supportive working conditions: Employees prefer physical conditions that are comfortable and facilitate doing a good job. Temperature, light, noise and other environmental factors should not be extreme and provide personal comfort. Further, employees prefer working relatively close to home, in clean and relatively modern facilities and with adequate tools and equipment. Supportive Colleagues: Employees have need for social interaction. Therefore, having friendly and supportive co-workers and understanding supervisors leads to increased job satisfaction. Most employees want their immediate supervisor to be understanding and friendly, those who offer praise for good performance, listen to employees opinions and show a personal interest in them. Whistle blowing: Whistle-blowers are employees who inform authorities of wrongdoings of their companies or co-workers. Whistle blowing is important because committed organizational members sometimes engage in unethical behavior in an intense desire to succeed.

Organizations can manage whistle blowing by communicating the conditions that are appropriate for the disclosure of wrongdoing. Clearly delineating wrongful behaviour and the appropriate ways to respond are important organizational actions. Social Responsibility: Corporate social responsibility is the obligation of an organization to behave in ethical ways in the social environment in which it operates. Socially responsible actions are expected of organizations. Current concerns include protecting the environment, promoting worker safety, supporting social issues, investing in the community, etc. Managers must encourage both individual ethical behavior and organizational social responsibility.

Set 2 Q1> What are the consequences of conflict in organizations? Ans> Outcomes of Conflicts Not all conflicts are bad. In fact, some types of conflict encourage new solutions to problems and enhance the creativity in the organizations. In these cases, managers will want to encourage the conflicts. Functional conflicts are conflicts that support the goals of the group and improve its performance. There are also conflicts that hinder group performance. These are dysfunctional or destructive forms of conflict. Therefore, managers should stimulate functional conflict and prevent or resolve non-dysfunctional conflict. This is the key to conflict management. The consequences of conflict can be positive or negative, as shown below: 1 2 3 4 5 6 Positive Consequences Leads to new ideas. Stimulates creativity. Motivates Change. Promotes organizational vitality. Helps individuals and groups establish identities Serves as a safety valve to indicate problems. 1 2 3 4 5 6 Negative Consequences Diverts energy from work. Threatens psychological wellbeing. Wastes resources. Creates a negative climate. Breaks down group cohesion. Can increase hostility and aggressive behaviors

Functional vs. Dysfunctional Conflict Functional, constructive forms of conflict support the goals of the group and improve its performance. Conflicts that hinder group performance are dysfunctional or destructive forms of conflict. Task conflict relates to the content and goals of the work. Low-to-moderate levels of task conflict are functional and consistently demonstrate a positive effect on group performance because it stimulates discussion, improving group performance. Dysfunctional Conflict: There are conflicts that hinder group performance, and are therefore known as dysfunctional or destructive forms of conflict. Dysfunctional conflict is an unhealthy, destructive disagreement between two or more people. A key for recognizing a dysfunctional conflict is that its origin is often emotional or behavioral. Disagreements that involve personalized anger and resentment directed at specific individuals rather than specific ideas are dysfunctional. In dysfunctional conflict, the losses to both parties may exceed any potential gain from the conflict.

1> State the characteristics of management. Ans> The main characteristics of management are as follows: Management is an activity: Management is an activity which is concerned with the efficient utilization of human and non-human resources of production. Invisible Force: Management is an invisible force. Its existence can be felt through the enterprise or institution it is managing. Goal Oriented: Management is goal oriented as it aims to achieve some definite goals and objectives. According to the Haimann, Effective management is always management by objectives. Managers and other personnel officers apply their knowledge, experience and skills to achieve the desired objectives. Accomplishment through the efforts of Others: Managers cannot do everything themselves. They must have the necessary ability and skills to get work accomplished through the efforts of others. Universal activity: Management is universal. Management is required in all types or organizations. Wherever there are some activities, there is management. The basic principles of management are universal and can be applied anywhere and in every field, such as business, social, religious, cultural, sports, administration, educational, politics or military. Art as well as Science: Management is both an art and a science. It is a science as it has an organized body of knowledge which contains certain universal truths and an art as managing requires certain skills which apply more or less in every situation. Multidisciplinary Knowledge: Though management is a distinct discipline, it contains principles drawn from many social sciences like psychology, sociology etc. Management is distinct from ownership: In modern times, there is a divorce of management from ownership. Today, big corporations are owned by a vast number of shareholders while their management is in the hands of paid qualified, competent and experienced managerial personnel. Need at all levels: According to the nature of task and scope of authority, management is needed at all levels of the organization, i.e., top level, middle and lower level. Integrated process: Management is an integrated process. It integrates the men, machine and material to carry out the operations of the enterprise efficiently and successfully. This integrating process is result oriented.

2> Explain the four processes of Social Learning Theory. Ans> Social Learning The social learning theory was proposed by Bandura. It recognizes the importance of observing and modeling the behaviors, attitudes, and emotional reactions of others. According to Bandura (1977), most human behavior is learned observationally through modeling: from observing others one forms an idea of how new behaviors are performed, and on later occasions this coded information serves as a guide for action. Social learning theory explains human behavior in terms of continuous reciprocal interaction between cognitive, behavioral, and environmental influences Social learning has four processes: 1. Attention processes People learn from a model only when they recognize and pay attention to its critical features. In order to learn, it is required to pay attention. Anything that detracts the attention is going to have a negative effect on observational learning. If the is model interesting or there is a novel aspect to the situation, it is more likely to dedicate the full attention to learning. 2. Retention processes A models influence will depend on how well the individual remembers the models action after the it is no longer readily available. The ability to store information is also an important part of the learning process. Retention can be affected by a number of factors, but the ability to pull up information later and act on it is vital to observational learning. 3. Motor reproduction processes After a person has seen a new behavior by observing the model, the watching must be converted to doing. The ability to store information is also an important part of the learning process. Retention can be affected by a number of factors, but the ability to pull up information later and act on it is vital to observational learning. 4. Reinforcement processes Individuals will be motivated to exhibit the modeled behavior if positive incentives or rewards are provided. Finally, in order for observational learning to be successful, you have to be motivated to imitate the behavior that has been modeled. Reinforcement and punishment play an important role in motivation. While experiencing these motivators can be highly effective, so can observing other experience some type of reinforcement or punishment. For example, if you see another student rewarded with extra credit for being to class on time, you might start to show up a few minutes early each day. Principles of social learning are as follows: 1. The highest level of observational learning is achieved by first organizing and rehearsing the modeled behavior symbolically and then enacting it overtly. Coding modeled behavior into words, labels or images results in better retention than simply observing. 2. Individuals are more likely to adopt a modeled behavior, if it results in outcomes they value. 3. Individuals are more likely to adopt a modeled behavior, if the model is similar to the observer and has admired status and the behavior has functional value

Q4> What are the 14 principles of management of Henri Fayol? Ans> 14 principles of Management of Henri Fayol: 1. Division of Work: Work should be divided among individuals and groups to ensure that effort and attention are focused on special portions of the task. Fayol presented work specialization as the best way to use the human resources of the organization. 2. Authority of Responsibility: The concepts of Authority and responsibility are closely related. Authority was defined by Fayol as the right to give orders and the power to exact obedience. Responsibility involves being accountable, and is therefore naturally associated with authority. Whoever assumes authority also assumes responsibility. 3. Discipline: A successful organization requires the common effort of workers. Penalties should be applied judiciously to encourage this common effort. 4. Unity of Command: Workers should receive orders from only one manager. 5. Unity of Direction: The entire organization should be moving towards a common objective in a common direction. 6. Subordination of Individual Interests to the General Interests: The interests of one person should not take priority over the interests of the organization as a whole. 7. Remuneration of Personnel: Many variables, such as cost of living, supply of qualified personnel, general business conditions, and success of the business, should be considered in determining a workers rate of pay. 8. Centralization: Fayol defined centralization as lowering the importance of the subordinate role. Decentralization is increasing the importance. The degree to which centralization or decentralization should be adopted depends on the specific organization in which the manager is working. 9. Scalar Chain: Managers in hierarchies are part of a chain like authority scale. Each manager, from the first line supervisor to the president, possess certain amounts of authority. The President possesses the most authority; the first line supervisor the least. Lower level managers should always keep upper level managers informed of their work activities. The existence of a scalar chain and adherence to it are necessary if the organization is to be successful. 10. Order: For the sake of efficiency and coordination, all materials and people related to a specific kind of work should be treated as equally as possible. 11. Equity: All employees should be treated as equally as possible. 12. Stability of Tenure of Personnel: Retaining productive employees should always be a high priority of management. Recruitment and Selection Costs, as well as increased productreject rates are usually associated with hiring new workers. 13. Initiative: Management should take steps to encourage worker initiative, which is defined as new or additional work activity undertaken through self direction. 14. Esprit de Corps: Management should encourage harmony and general good feelings among employees.

Q5> Distinguish between internal and external forces of change. Ans> Internal forces and External forces of change: 1) Internal forces Any change in organizations internal factors may also necessitate change. Such a change is required because of two reasons: change in managerial personnel and deficiency in existing organizational practices. Change in the top management: Change in the top management and consequent change in the ideas to run the organization also leads to change in the system, structure and processes. Old managers are replaced by new managers which are necessitated because of retirement, promotion, transfer or dismissal. Each new manager brings his own ideas and way of working into the organization. The formal or informal relationships may change because of changes in top management. Moreover, attitudes, ideology, leadership style of the person may be different from the earlier one, this will reflect in their actions and decisions. The result is that an organization has to change accordingly. Change in size of the organization: Change in the organizations size leads to change in the internal structure and complexity of the operations in the organization. Performance gaps: When a gap between set target and actual results (in terms of market share, employee productivity and profit) is identified, organizations face the forces to change and reduce the gap. Employee needs and values: With changing needs and values of the employees, organizations change their policies. For example, attractive financial incentives, challenging assignments, vertical growth opportunities and autonomy at work may be provided in an organization to attract and retain its effective employees. Deficiency in existing organization: Sometimes, changes are necessary because of deficiency in the present organizational arrangement and process. These deficiencies may be in the form of unmanageable span of management, large number of managerial levels, lack of coordination between various departments, obstacles in communication, multiplicity of committees, lack of uniformity in policy decisions, lack of co-operation between line and staff and so on.

2) External forces Each organization has goals and responsibility related to others in its environment. Thus, an organization must not only deal with its environment in conducting its affairs, but also give consideration to the goals of others, as it establishes its goals and conducts its operations. The present-day environment is dynamic and will continue to be dynamic. Changes in social, political, economic, technological, and legal environment force organizations to change themselves. Such changes may result in organizational changes like major functions, production process, labour-management relations, nature of competition, economic constraints, organization methods, etc. In order to survive in the changing environment, organization must change. Technology: Technological changes are responsible for changing the nature of the job performed at all levels in an organization. When there is a change in technology in the organizations environment and other organizations adopt the new technology, the organization under focus becomes less cost-effective and its competitive position weakens. Therefore, it

has to adopt new technology. When the organizations adopt a new technology, its work structures are affected and a new equilibrium has to be established. We have seen that technology has impact on organization structure, organizational processes, and behavior of people. For example, computers and automation have made significant impact on organizational functioning. Business scenario: Due to rapid changes in the business scenario with increasing competition and global economy, the needs and demands are also changing among the customers, suppliers and other stakeholders. Organizations are, therefore, forced to change their operational methods to meet the demands of the stakeholders. Since every organization exports its outputs to the environment, an organization has to face competition in the market. There may be two types of forces which may affect the competitive position of an organization, other organizations supplying the same products and, buyers who are buying the product. Any change in these forces may require suitable changes in the organization. For example, when Indian economy was liberalized (the process still continues), there were many foreign organizations which entered the Indian market. This forced many Indian organizations to realign themselves with the new situation. The result is that there have been many cases of divesting the business and concentrating on the core business, acquiring core business, and developing competitive competence to face competitive threats. Similarly, there may be changes in buyers in terms of their needs, liking-disliking, and income disposal for a product. These changes force the organizations to bring those products which meet buyers requirements. Environmental and National factors: Environmental factors such as economic, political and demographic and legal factors play a vital role in devising organizational policies and strategy. Any change in these political and legal factors may affect the organizational operation. For example, organizations may have to change their employment policies in accordance with the government policy, demand of the non-government organizations and changing economic conditions of a country. Social changes: Social changes reflect in terms of peoples aspirations, their needs, and their way of working. Social changes have taken place because of the several forces like level of education, urbanization, feeling of autonomy, and international impact due to new information sources. These social changes affect the behavior of people in the organization. Therefore it is required to make adjustment in its working so that it matches with people.

Q6> Ms.Chanchal Das Gupta is a recruitment specialist. For the post of QC Manager, she interviews three candidates. Given below are the physical characteristics of the candidates. Mr.Ravi Mr.Gineesh Mr.Ramgopal Muscular, thick skin, rectangular shaped. Thin, delicate build, large brain, tall. Soft, round shaped, underdeveloped muscles.

Ans: Per Sheldon`s theory of personality, below are the traits that Ms. Chanchalcan derive: Mr. Ravi represents Mesomorph body type. He is well-proportioned. Psychologically he is Adventurous, Courageous, Indifferent to what others think or want, Assertive/bold, Zest for physical activity, Competitive, With a desire for power/dominance, And a love of risk/chance Mr. Gineesh represents Ectomorph body type. Psychologically he is Self-conscious, Private, Introverted, Inhibited, Socially anxious, Artistic, Intense, Emotionally restrained, Thoughtful Mr. Ramgopal represents Endomorph body type. Psychologically he is Sociable, Fun-loving, Love of food, Tolerant, Even-tempered, Good humoured, Relaxed, With a love of comfort, And has a need for affection