PART - A

ORGANIZATIONAL BEHAVIOUR – CASE STUDY

1) Surepleasure Airlines

(a)What are the dysfunctions of informal organization in the Surepleasure Airlines?

 Records maintained were in violation of Airport Authority regulations and record keeping
were so pathetic that it resulted in extreme renovation costs.
 Informal work group used to create obstacles for new employees if they are not in tune
with their norms.
 If new employers were not jelling with the existing work group team members, then they
had minimal chance of growth or progress in the group.
 Aninformal organizationis basically the social structure of anorganization, which focuses
on social interaction and relationships between its employees.
 In Surepleasure airlines, groupism was way too much. They were having weekend parties
and people who were not joining the group were made discomfort at work and were ill-
treated to anextent that they were forced to quit the organization.
 Due to influence of informal group members, Manager were not able to control neither
the members nor the outcome.
 Groupism increases the time to complete activity as they indulge most of the time in
playing, chitchat, gossiping, long breaks and parties.

(b)Could there be any benefits of informal organization in this company?

Yes, Surepleasure airlines can encash the benefits of informal organization structure for the
betterment of themselves and organization as a whole. Instead of projecting new employees as
poor performers, they can just motivate them to be social and help them progressing along with
the existing group of resources. Basically rejecting new employees, in real-time they are causing
damage to the organization on long run because organization would be losing valuable work
force resources. Even though Surepleasure airlines has the informal organizational structure, it
can make use of the benefits of it in a better way. Employee bonding should be very strong in an
organization in order to achieve organizational goals. In case of Surepleasure airlines, the
groupism factor would have been utilized for the growth of an individual, for the team growth
and growth of an organization. They can share ideas, make strategies, create proper plans and
work accordingly. As a result, the productivity increases. It is always good to have social gathering
to know each other very well. But it should never be restricted only to a group of people at their
comfort level. It should create a comfortless to the team.

In real-time scenario, there will be certain benefits of informal organization structure which are
listed as below:
i. Promotes social and cultural values
 ii. Relief to top managers
iii. Supplement to managers’ capacities
iv. Social satisfaction and security
v. Communication
vi. Better relationships
vii. Solve work-related problems
viii. Promotes creativity
ix. Self-control
x. Restraint on manager’s discretion

(c) What suggestions would you give to the management of this company to cope with the
informal organization?
According to Keith Davis, “Beneath the cloak of formal relationships in every institution, there
exists a more complex system of social relationships called informal organization”. Creation of
informal organization is a universal process as man is a social animal and he can't live in
isolation. People form informal organization on the basis of common interests, preferences,
tastes, religion, etc.

The following suggestions will enable the manager/Management to make effective use of
groups in the organization:

1. The informal groups operating in the organization should be identified and their
existence recognized.
2. The patterns of informal communication should be analyzed carefully. To know the
sources of misinformation, rumour, etc. an enlightened manager can use informal
channels to plug the loopholes of the formal communication system.
3. The management should try to achieve equilibrium between formal and informal
organizations. Conflicts between the two should be avoided through two-way
communication with the group and their leaders.
4. The management should attempt to integrate the interests of informal groups with
the objectives of the formal organization. If this could be achieved, much of the role
conflict would be avoided.
5. The desirable patterns of informal relationships may be incorporated into the formal
structure. This will make the organization strong.
6. Informal group must be taken into confidence whenever a change in work methods
is to be introduced in the organization. It is easier to introduce a change when
group norms are changed. For overcoming resistance to change on the part of the
groups, the management must share complete information about the change with
the groups and try to persuade them to accept change by convincing them of the
benefits of the said change.
To sum up, informal groups can be used constructively for attainment of organizational goals. If
the interests and goals are integrated with the company's, the groups will work for the
company objectives rather than against them.

HUMAN RESOURCES – CASE STUDY

3). SEWA – The purposeful beginning

(a) What are the unique features of SEWA?

Activities and Vision for the Future SEWA has attempted to create co-operatives of
various services provided by the labour community especially in the areas of domestic
labour, health care, child care and video production. So as to enable these persons' to
market their services, efforts are being made to provide them training on a continuous
basic. SEWA's Attempt at Empowering Employees SEWA'S aim has been to empower such
women who are poor and illiterate to become economically active through the process
of empowerment. This view is slowly becoming a reality, when, after joining SEWA and
attending formal training programmes, such women have become bold, realized their
sense of self through participating, facing, managing situations and other people and
thus learning to become 'leaders' in the true sense.

(b) Discuss the worker oriented development approach of SEWA affecting the performance.

The vision of Ela Bhatt, who started SEWA, has always been to ensure that the informal
sector is in the mainstream of labour movement with a leading role to be played by the
rural women. SEWA'S aim has been to empower such women who are poor and
illiterate to become economically active through the process of empowerment. This
view is slowly becoming a reality, when, after joining SEWA and attending formal
training programmers, such women have become bold, realized their sense of self
through participating, facing, managing situations and other people and thus learning to
become 'leaders' in the true sense. Thus process of empowerment has enabled them to
develop an inbuilt strength to do liaison with the police, take up the causes of fellow
workers, actively participate in the decision making process especially while sitting on
committees, travelling and meeting people for the growth of the organization. At SEWA,
there is no formal organization structure as such. In the words of Ela Bhatt, "SEWA is like
a banyan tree, it grows and takes root, then these roots grow and take root...." i.e.
SEWA's growth is totally dependent on its members who become owners, managers,
beneficiaries and a truly empowered organization in the long run
(C) Can you suggest ways in which private corporate organisations can also be involved in
developing management programmes along with SEWA for the upliftment of the rural
people?

The involvement of private firms is a key element to foster rural development strategies.
Companies participating in integrated value chains are expected to act as a strategic partner
providing market opportunities for rural producers, as well as sharing technology, skills, and
knowledge necessary with them. The benefits for firms include continuous supply of their
products; strengthening of their supply chain; positive market recognition; access to specific
market niches, and improvement of their position to manage the risks involved in the process.
Moreover, even companies whose value chains are not directly linked with rural communities
(i.e., financial services, mobile telecommunications, manufacturing, construction, chemicals, and
others) might have the opportunity to generate benefits through rural development. Through
corporate social responsibility and stakeholder management strategies, firms could manage
possible risks and contribute to the improvement of the socio-economic conditions of rural
communities nearby their manufacturing or administrative sites. The win-win proposition
expressed by Utting recognizes that through the application of corporate social responsibility
strategies firms are able to receive different benefits like enhancement of company’s
competitive advantage, customer recognition, cost reduction by eco-efficiency and recycling as
well as an increase in the personnel’s morale and reduction of labor turnover. However, there
are significant obstacles that must be faced by firms during their race to become better
corporate citizens. For instance, companies undertaking costly initiatives could end up risking
their price-cost competitiveness. Other obstacles related to multi-institutional interactions may
result in bureaucracy and over-regulated processes representing resources and costs for
companies without generating meaningful societal benefits in return—principally during the
early stages of the process.

There is considerable diversity with regards to the type of organizations involved in

development. As economic liberalization diminished the role of the state towards the end of
the 20th century, the role of NGOs and commercial organizations in service provision increased.
Many would now argue that development goals – whether these relate to economic growth and
income poverty or to provision of key social services – are best achieved when governments,
NGOs and commercial organizations work in partnership with each other.
 Part B
Question: 1

Define, what is Organizational Behaviour and state why it is importance to study

Organizational Behaviour?

Answer:

Organizational behavior (OB) is the study of individual and group behavior in

organizational settings. OB looks at organizations as entities, the forces that shape them,
and their impact on organizational members. The study of OB involves three levels of
study: (1) The Individual; (2) The Group (or Team); and (3) The Organization.

OB examines attitudes, social climate, and performance within an organization by

examining both individual and group behavior on a regional, national, or global level.
Researchers examine why people (individually or in groups) behave the way they do and
how to manage these behaviors so that the organization can achieve optimal
performance.

Researchers in organizational behavior study age-old questions such as: What are the
characteristics of a good leader? And, how can a manager motivate workers? Increasingly,
questions that have social and moral relevance, such as what makes an organization
"ethical" in both action and reputation, are also being addressed.

The Importance of Studying Organizational Behavior

In our competitive, complex, and constantly changing world, organizations must be both
efficient and effective in what they do. To do this, organizations must have competent
employees that know how to work together to reach organizational goals. As a result, it is
important to understand how to build and maintain a competent and cooperative work
force.

For example, think about the organizations that you've dealt with either as a customer or
as an employee. It's likely that your experiences have not always been pleasant and
trouble-free. Perhaps you've been kept waiting for service, spent hours trying to get
relatively straightforward information, or worked for a boss who gave you no direction
and then criticized your work. On the other hand, you have also most likely been exposed
to organizations that consistently maintained high standards of excellence. Organizational
 behavior addresses the differences in these organizations, such as why some
organizations are more effective than others, and why some supervisors make excellent
managers.

By studying organizational behavior, both employees and managers come to understand

what makes people behave the way they do. Employees can use this knowledge to
increase their own job satisfaction and improve work performance. Managers can use
organizational behavior to accomplish goals and help employees achieve optimal
performance. More importantly, learning about organizational behavior will help you to
understand your own behaviors, attitudes, ethical views, and performance, as well as
those of the people with whom you'll be working. This type of knowledge will assist you in
working effectively with managers, colleagues, and subordinates.

Question: 4

Explain the Process of Communication and its significance in an organization

Answer:

Communication is fundamental to the existence and survival of humans as well as to an

organization. It is a process of creating and sharing ideas, information, views, facts, feelings, etc.
among the people to reach a common understanding. Communication is the key to the
Directing function of management.

Communication Process:

Communications is a continuous process which mainly involves three elements viz. sender,
message, and receiver. The elements involved in the communication process are explained below
in detail:

1. Sender
The sender or the communicator generates the message and conveys it to the receiver. He is the
source and the one who starts the communication

2. Message
It is the idea, information, view, fact, feeling, etc. that is generated by the sender and is then
intended to be communicated further.
3. Encoding
The message generated by the sender is encoded symbolically such as in the form of words,
pictures, gestures, etc. before it is being conveyed.
4. Media
It is the manner in which the encoded message is transmitted. The message may be transmitted
orally or in writing. The medium of communication includes telephone, internet, post, fax, e-mail,
etc. The choice of medium is decided by the sender.

5. Decoding
It is the process of converting the symbols encoded by the sender. After decoding the message is
received by the receiver.

6. Receiver
He is the person who is last in the chain and for whom the message was sent by the sender. Once
the receiver receives the message and understands it in proper perspective and acts according to
the message, only then the purpose of communication is successful.

7. Feedback
Once the receiver confirms to the sender that he has received the message and understood it, the
process of communication is complete.

8. Noise
It refers to any obstruction that is caused by the sender, message or receiver during the process of
communication. For example, bad telephone connection, faulty encoding, faulty decoding,
inattentive receiver, poor understanding of message due to prejudice or inappropriate gestures,
etc.

Significance of Communication:

1. The Basis of Co-ordination

The manager explains to the employees the organizational goals, modes of their achievement and
also the interpersonal relationships amongst them. This provides coordination between various
employees and also departments. Thus, communications act as a basis for coordination in
the organization.

2. Fluent Working
A manager coordinates the human and physical elements of an organization to run it smoothly
and efficiently. This coordination is not possible without proper communication.
3. The Basis of Decision Making
Proper communication provides information to the manager that is useful for decision making. No
decisions could be taken in the absence of information. Thus, communication is the basis for
taking the right decisions.

4. Increases Managerial Efficiency

The manager conveys the targets and issues instructions and allocates jobs to the subordinates. All
of these aspects involve communication. Thus, communication is essential for the quick and
effective performance of the managers and the entire organization.

5. Increases Cooperation and Organizational Peace

The two-way communication process promotes co-operation and mutual understanding amongst
the workers and also between them and the management. This leads to less friction and thus leads
to industrial peace in the factory and efficient operations.

6. Boosts Morale of the Employees

Good communication helps the workers to adjust to the physical and social aspect of work. It also
improves good human relations in the industry. An efficient system of communication enables the
management to motivate, influence and satisfy the subordinates which in turn boosts their morale
and keeps them motivated.

Question: 6

Identify steps in decision making process in an organization and explain with example?

Answer:
In general, the decision making process helps managers and other business professionals solve
problems by examining alternative choices and deciding on the best route to take. Using a step-
by-step approach is an efficient way to make thoughtful, informed decisions that have a
positive impact on your organization’s short- and long-term goals.

The business decision making process is commonly divided into seven steps. Managers may
utilize many of these steps without realizing it, but gaining a clearer understanding of best
practices can improve the effectiveness of your decisions.

Steps of the Decision Making Process

The following are the seven key steps of the decision making process.
 Identify the decision. The first step in making the right decision is recognizing the problem or
opportunity and deciding to address it. Determine why this decision will make a difference to
your customers or fellow employees.
 Gather information. Next, it’s time to gather information so that you can make a decision
based on facts and data. This requires making a value judgment, determining what information
is relevant to the decision at hand, along with how you can get it. Ask yourself what you need to
know in order to make the right decision, then actively seek out anyone who needs to be
involved.
 Identify alternatives. Once you have a clear understanding of the issue, it’s time to identify the
various solutions at your disposal. It’s likely that you have many different options when it
comes to making your decision, so it is important to come up with a range of options. This helps
you determine which course of action is the best way to achieve your objective.
 Weigh the evidence. In this step, you’ll need to “evaluate for feasibility, acceptability and
desirability” to know which alternative is best, according to management experts Phil Higson
and Anthony Sturgess. Managers need to be able to weigh pros and cons, then select the
option that has the highest chances of success. It may be helpful to seek out a trusted second
opinion to gain a new perspective on the issue at hand.
 Choose among alternatives. When it’s time to make your decision, be sure that you understand
the risks involved with your chosen route. You may also choose a combination of alternatives
now that you fully grasp all relevant information and potential risks.
 Take action. Next, you’ll need to create a plan for implementation. This involves identifying
what resources are required and gaining support from employees and stakeholders. Getting
others onboard with your decision is a key component of executing your plan effectively, so be
prepared to address any questions or concerns that may arise.
 Review your decision. An often-overlooked but important step in the decision making process
is evaluating your decision for effectiveness. Ask yourself what you did well and what can be
improved next time

Question: 11

11. Define conflict and negotiation in organization and Explain the nature of conflicts in
organizations?

Answer:

Conflict: A process that begins when one party perceives that another party has negatively
affected, or is about to negatively affects something that the first party cares about

Negotiation: A process in which two or more parties exchange goods or services and attempt to
agree upon the exchange rate for them
 Nature of Conflict:

In simple terms, organizational conflict alludes to the result of human interaction, that starts
when one member of the organization discusses that his/her goals, values or attitude are
incompatible, with those of other members of the organization. The incompatibility in opinions
can come into being, within a member, between two members, or between groups of the
organization.

1. Unclear Responsibility: If there is lack of clarity, regarding who is responsible for which section
of a task or project, conflict takes place. And, to avoid this situation, the roles and responsibility
of the team members should be stated clearly and also agreed upon by all.
2. Interpersonal Relationship: Every member of an organization, possesses different personality,
which plays a crucial role in resolving conflict in an organization. Conflicts at the workplace are
often caused by interpersonal issues between the members of the organization.
3. Scarcity of Resources: One of the main reason for occurrence of conflict in an organization is
the inadequacy of resources like time, money, materials etc. due to which members of the
organization compete with each other, leading to conflict between them.
4. Conflict of Interest: When there is a disorientation between the personal goals of the individual
and the goals of the organization, conflict of interest arises, as the individual may fight for his
personal goals, which hinders the overall success of the project.

Conflicts alleviate at the workplace due to individual and inter-individual factors. Individual
related causes entails attitudes, beliefs, personality orientation and human-frailties. Inter-
individual conflicts arises when a manager breaches norms of the organization.

Question: 07

Distinguish between Attitude and Aptitude and how will you explain this with reference to
organization?

Answer:
Aptitude is how much competencies you have, while attitude is how willing you are to acquire
those competencies. Goleman, in his famous book emotional intelligence points that, success is
20% Aptitude and 80% Attitude, so let us understand what are the differences between two:

Aptitude Attitude

 Its potential which an individual to do job  It’s a hypothetical construct of engrained

effectively sets of emotions, viewpoints &
Temperament
  It is IQ, it is a scalar quantity – Aptitude
its potential
 It is very visible they are hard skill, needs
formal educations
 It’s a body, and it’s difficult to be faked
 Its more about competency, it can be
both physical & Mental
 Its general genetic or the ability to learn
something is natural
 Its and EQ, it is VECTOR quantity attitude,
it has direction.
 It is difficult to judge, it does not needs a
formal education to be acquired
 It’s a soul, it can be easily faked in short
term
 Its more about character and virtue, it
may be (+) or (-), etc (Optimist /
Pessimist)
 It develops with external environment
and is dynamic can be constantly
changed.

Question: 12
Describe the steps involved in selection process and explain the challenges when using social
media for recruitment purpose?

Answer:

Once the recruiting process has identified a pool of qualified applicants, it is time to begin the
selection process. Selection process is concerned with identifying the best candidate or
candidates for a job from among the pool of qualified applicants developed during the recruiting
process.

Steps in selection:
At general level the selection process involves three distinct steps
1. Gather Information
2. Evaluate Qualification
3. Make Decisions

1. Gather information: Gathering information about the members of the pool of qualified
recruits regarding the levels of requisite knowledge, skills and abilities possessed by
each applicant. Along with above factors in addition information will be gathered such as
qualification, experience as well attitude of the individuals towards work and impressions
of current managers.
2. Evaluate Qualification: The second step is evaluating the qualifications of each
applicant from among the recruiting pool. This evaluation process occurs through the
application of explicit or implicit standards to the information gathered in step 1, with the
manager assessing how closely the individual fits the desired profile.
3. Make Decision: The third step is making the actual decision about which candidate or
candidates will be offered employment with the organization. This decision involves
careful assessment of the individual’s qualifications relative to the standards of the job
 and the extent to which those qualifications best prepare and provide an individual the
requisite skills and abilities for the position.

Challenges of recruiting with social media

Most business functions have – to some degree – succumbed to the ubiquity and power of
social media, and the HR department isn’t immune.

According to research conducted by the Society of Human Resource Management, 76 percent

of companies currently use or plan to use social media during the recruiting process.

Whether it’s spreading the word about a new job posting through LinkedIn groups, or reviewing
candidates’ Twitter feeds before an interview, social media offers HR managers a quick, cost-
effective way to expedite the recruiting process.

But while social channels seem like an obvious resource for pre-employment screening, there’s
an incredibly fine line between appropriate and problematic use. When applied inappropriately,
social media screening can prompt a slew of legal risks related to user privacy and employee
discrimination.

Despite a vague regulatory landscape in regards to social media and the hiring, compliance
executives and HR departments should start enforcing their own standards in order to preempt
backlash – legal or reputational – later on.

"Additionally, there are concerns about discrimination because many candidates will have
information about their race, gender, age, religion and other points of issue on their
profiles," Piovesan (Infomart CEO) said. "That also means that conducting social media
background checks on your own can lead to legal and ethical problems."

In short, given the labyrinth of regulations, recruiting with social media can be filled with new
liabilities. Modernizing the strategy means updating compliance efforts accordingly.