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MODULE-3 ORGANISATION- It is the planned co-ordination of activities of a number of people for the achievement of a common, explicit purpose or goal

through division of labor and function, and through a hierarchy of authority and responsibility. Organization Structure- It is the formal system of task and authority relationships that control how people co-ordinate their actions and use resources to achieve organization goals. ORGANISATION CULTURE When members of an organization work together for years, in the process, some different feelings, norms, values and practices tend to emerge and these become internalized by the members. Some of these norms and practices become so much internalized that no body questions them or we can say that they are institutionalized. This institutionalization becomes useful as it prevents unnecessary questioning. It may also be harmful if it develops groupthink, resistance to change or innovations. It is defined as a representation of beliefs, attitudes and norms which knit an organization together and is shared by its employees. It is usually learnt and it develops in response to two major challenges that confront every organization: (a) external adaptation and survival, and (b) internal integration. External Adaptation includes- (a) mission and strategy- the prime purpose of the organization and selecting the strategy to pursue the mission, (b) Goals- setting specific targets, (c) Means- Selecting organization structure and reward system, and (d) Measurement- establishing the criteria to determine how well the individual the teams are accomplishing their goals. Internal integration has to do with the establishment and maintenance of effective working relationships among the members of the organization. It includes: (a) language and concepts- describing standard communication, (b) group and team boundariesdescribing criteria for group and team membership, (c) Power and structures- rules for acquiring power and status, and (d) Reward and punishment- developing systems for encouraging desirable behaviors and discouraging undesired behaviors. Organization Effectiveness (OE): Words like productivity, efficiency, profitability and growth are interchangeably used to denote Organization effectiveness. Any organization has multiple goals, e.g. an educational institution has goals like teaching, research etc. There are at least four approaches to measure OE, they are: 1. Goal Attainment approach- Achievement of one or more goals set by organizations is taken as the criteria to judge the OE. Profit maximization, high productivity (for manufacturing organizations), employees high morale (for educational org./ offices), and providing efficient service (for service organizations) are examples of Goal attainment criteria.

2. Systems Approach: Multiple goal attainment may not be accurate because there may be high success on one goal where as failure in other goals. Within Systems approach framework, OE reflects the degree to which an organization maximizes all forms of energetic return (i.e. inputs and outputs) in its relationship with the environment; i.e. the adaptability of the entire range of activities to the external environment. 3. Strategic Constituencies Approach: It is a closely related approach to Systems approach, but affectivity is considered not on all environmental constituencies, but on those constituencies from which it requires support for which it requires support for its continued survival or those constituencies of the environment which threaten the organizations survival. 4. Competitive- Values Approach- It is the integrated assessment of the OE on the basis of all of the above variables. ORGANISATIONAL CHANGE It is the process by which an organization moves from its present state to some desired future state to increase their effectiveness. Nature: Change is vital if an organization were to avoid stagnation, it is a process and not an event, it is normal and constant, it can be directive (i.e. implemented by top- down management) or participative (i.e. involving all parties that are effected by the change), it is natural- evolutionary/ adaptive, i.e. a reaction to the external environment and pressure, incremental/ continuous in steps, and is interdependent on the organization environment/ culture. Change interferes with three organization components the historical and political evolution of the company the organization and the management of the company The people who work for the company. Some definitions Change agent- Person(s) who act as a catalyst and accepts the responsibility for managing the change processed Change interventions- The planned action to make the things different. Change Targets- Individual and groups who are affected by the change. Levels of Change Change can occur at three levels(a) Individual level, (b) Group level, and (c) Organization level.

Importance of Change Change is inevitable, organization must adapt to demands of the environment or they will become extinct. An organization can not and should not stagnate even if it wants to remain constant, external factors force it to change. Change encompasses all aspects of ones personality like personality, perception, leadership etc. The word Change is not liked as it invokes emotional reaction.

Planned Change Change may be either necessited by the pressure of external pressures or by deliberate and conscious efforts of the management. The later type of change is called Planned Change. It encompasses the application of systematic and appropriate knowledge to human affairs for the purpose of creating action and choices. The management may decide to go in for Planned Change for the following reasons: To improve the means for satisfying economic needs of its members/ employees. To increase efficiency and profitability. To improve humanization of work environment. To contribute to development and social well- being of each employee.

1. It is implemented through Change Agents- external consultants/ from inside the organization who manage the process of change. 2. Target of change- individual/ group/ organization. 3. Change Intervention- process of change (planned action meant to change). Kurt Lewins Model/ 3- stage Model/ Force- field theory Of Planned Change Resistance to change can be overcome by systematically planning and implementing the change. Kurt Lewin argued that successful implementation of change should follow three stages- (a) Unfreezing the status- quo, (b) Movement to new state, and (c) Refreezing. Fig. No.20.8 Page-597 (a) Unfreezing the status- quo: Change efforts to overcome both the individual resistance and group conformity. Encourages individuals to discard old behaviors by increasing the driving forces. This is achieved by introducing a new problem and seeking solutions. Often the elimination of reward for current behaviors may be introduced. (b) Moving to new state: Shift or alter the behavior of individuals/ group/ organization in which change is to take place. Moving implies developing new

behaviors, values and attitudes sometimes through structural changes or through different OB techniques. (c) Refreezing: Here the change becomes permanent. New attitudes, values and behaviors are established as the new status- quo. The new ways of operating are cemented and reinforced. Managers should ensure that the organization culture and reward system encourages the new behaviors and avoid the old ways of functioning. Conclusion- Successful change involves completion of all three stages i.e. old behavior is discarded, new behavior is introduced and these new behaviors are institutionalized and rewarded. Transition Management- When the organization is in between the Unfreezing and Refreezing stages (or at the transition stage), transition management is essential to keep the organization moving. Transition Management is the process of systematically planning, organizing and implementing planned change from the disassembly of the current state to the realization of the fully functional future state within the organization. It ensures that business continues while the change is occurring. Interim management may be formed for the purpose and communication of change may be done to all the parties affected by the change. HUMAN RESOURCE MANAGEMENT Human Resource Planning It is a plan of action and a statement of intention committing the management to a general course of action. It helps an organization to systematically forecast its future demand for and supply of employees. It helps an organization to staff itself with right people at the right time. It consists of six internal areas of activities: Demand forecasting- estimate future manpower needs with respect to functional plans and future activity levels. Supply forecasting- estimate the supply of manpower by reference to analysis of current resources and future availability after allowing for wastages. Forecasting requirements- Analyze demand-supply forecast and identify demandsupply deficit or surplus by using different models. Productivity and cost analysis- Analyze and identify need for improvement in production/ reduction of cost. Action planning- Prepare plans to deal with forecast data. Budgeting and control- Setting HR budgets and monitoring implementation of plans against them. Job Analysis It includes (a) job description- tasks and duties, and (b) job specificationqualification expected from expected job seekers. Job analysis is useful for personnel planning, performance appraisal etc. Helps to hire right number of people of right type to fill up the jobs. Hiring includes Recruitment and Selection.

Recruitment It is the process of finding and attracting capable applicants for employment. The process begins when new recruits are sought and ends when their applications are submitted. General purpose of recruitment is to provide a pool of potentially qualified job candidates. The specific purposes are: Determine present and future manpower requirements in conjunction with the Personnel planning and Job Analysis activity. Increase the pool of job candidates with minimum cost. Help increase the success rate of selection process by reducing the number of under qualified and over qualified job applicants. Ensure that job applicants who are recruited and selected stay with the organization for longer periods. Meet organizations social and legal obligations regarding composition of its workforce. Ensure effectiveness of all training programmes for all types of job applicants. Sources of Recruitment 1. Internal- present employees, employee referrals, old employees, and previous applicants. Merits: Less costly, organization is already aware of candidates skills and abilities, policy of promoting employees builds employee morale. Demerits- Organization perpetuates old ways of doing things and creative problem solving is hindered due to lack of new talents, Complaints of unit raiding- Divisions compete for the same people. 2. External- Professional/ trade associations, Advertisements, Employment Exchanges, Colleges/ Universities/ Institutes, Consultants, Contractors, Competitors firms, Acquisition and Mergers. Merits- Advantage of new talents, skills and experience; management will be able to fulfill reservation requirements in favor of disadvantaged sections of the society; scope of resentment/ jealousy is avoided. Demerits- Advantage due to internal promotions like better motivation and increased morale is lost; it is costly; failure in the process of recruitment can result in rejection of right candidates and absorption of wrong candidates. Selection It is the process of picking individuals (out out of pool of job candidates) with requisite qualifications and competence (experience) to fill up jobs in the organizations. Difference between Recruitment and Selection

Recruitment 1. Identification and encouragement of Prospective employees to apply for jobs 2. Positive- it seeks to attract as many candidates as possible. Role of Selection

Selection Picking up right candidates from the pool of applicants. Negative- seeks to eliminate as many unqualified candidates as possible to Identify right candidates.

Effectiveness of an organization depends on people and improvement of the same can be achieved by hiring people who have the competence and are willing to work. Effective selection helps secure such personnel. Cost involvement has been growing heavily- implies the importance of selection. It is a long chain process starting from tests and interviews to issue of appointment letter.

Process of Selection Invite Applications. Screening of applications. Conducting tests and interviews. Candidates physical and Medical Tests. Collecting References and checking Antecedents. Verifying Certificates. Issue of Appointment Letter. Orientation and Placement Orientation (also called as induction) is designed to provide a new employee with the information he/ she needs to function comfortably and efficiently in an organization. It provides three types of information: (a) general info regarding daily work routine, (b) review of organization history, objectives, operations, production or services, and (c) detailed presentation perhaps in a brochure/ hand- book regarding work rules, regulations and benefits. Purpose Effective orientation programme reduce the anxiety of new employees by giving them information and supervisor introduction to the co-workers and encourage them to get clarified for any queries. Modifies employee expectations from the organization and helps in quicker adjustment by being more realistic. Effective orientation programme has a bearing on employee absenteeism and turn-over because first impression lasts long.

Orientation Programme 1. Informal- Report to Personnel department and get a first hand knowledge about rules and regulations, and then to the supervisor for briefing on the nature of job. This lasts for a few hours. 2. Formal- (a) Introduction to the organization generally given by the HRD, (b) specific orientation to the department and the job- usually given by the supervisor, and (c) follow-up meeting- usually between the supervisor and the employee after a week or so to ascertain that all of the employees queries have been answered. Placement This precedes the process of Selection. It is the process of allocation of people to jobs. It can be either assignment or reassignment of an employee to a new or different job job respectively. It includes initial assignment for new employees and promotion/ transfer or demotion for old employees. Placement may or may not be at the location/ job for which advertisement was made prior to selection in todays changing times because a candidate may be suitable to handle more than one job or may be suitable for a job other than the one he/ she was selected for. The number of jobs and the number of people available govern the placement in an organization. Training and Development Training Training is required for workers, supervisors and managers alike in order for them to acquire growth and maturity in thinking and actions. It is an on-going process in an organization. Inputs in T&D- It helps develop skills , acquire vision to look into distant future, attitudinal changes and stressing problem solving & decision making abilities. Skills Training imparts skills to employees. A worker needs skills to operate machines use other equipments with least damage & scrap. Managers need interpersonal skills People skills which help him to understand themselves & others better & act accordingly. E.g. lightening, persuading and understanding others feeling. Education Develops theoretical concepts, develops a sense of reasoning & judgment professors with theoretical knowledge expertise are hired. CEDs of reputed organization are known to have attended B-schools. It is more needed for mangers & executives.

Development In addition to skills, knowledge about business environment, management principles & techniques human relations, specific industry analysis will be useful for the managers to manage better. Remuneration & incentives of employees: Remuneration is what the employees receive in exchange of their contribution to the organization. Adequate remuneration helps the organization to obtain, retain & maintain productive work force. Large no. of industrial disputes relate to remuneration related issues. Remuneration fixation: 1. External labour market cost of thing, labour unions, Govt. legislation, Society, Economy. 2. Internal- companies ability to pay, job evaluation, performance appraisal, Employee himself /herself. PERFORMANCE APPRAISAL (PA): It is the assessment of an individuals performance in a systematic way; the performance being measured against such factors like quality and quantity of the job, initiative, leadership abilities, co-operation, judgment, versatility and health. Objectives/ Needs of PA: To affect promotions based on competencies and performance. To confirm the services of the probationary employees after completion of their probation period. Decide on a pay rise/ pay- revision (assess the employee for award of reward/ punishment). To assess the training and development needs of employees. To give feedback to the employees and guide them for their own development. Improve communication and trust between employee and supervisor by providing means to have a dialogue. To determine whether the HRM practices have been effective. Who should do the Evaluation?- (a) Peers- Colleagues at similar positions, (b) Selfevaluation- by the employee himself/ herself, (c) immediate supervisor- the boss, (d) immediate subordinate- employee(s )- employees working under the person being evaluated, and (e) 360- degree evaluation- from all the people who are in contact with the person being evaluated. Methods of PA 1. Written essays: This describes employees strengths, weaknesses, past experiences, potentials and suggestions for improvement as evaluated by the

evaluator. Actual level of performance of an employee depends on the writing skill of the evaluator as there are no formal formats involved. 2. Critical Incident Method: This is based on the qualities of the employee behavior which makes a difference between either executing a job effectively or ineffectively. The accuracy of the evaluation depends on the proximity of the evaluator with the individual being evaluated at work. 3. Train evaluators: Evaluators are trained to avoid effects of halo and leniency effects in workshops and such regular refresher courses are held whereby the evaluators become impartial in their judgments. 4. Provide employees with Due process: In this method, - (a) individuals are provided with adequate notice of what is expected of them, before the actual evaluation takes place, (b) all relevant evidence of an assessed violation is aired in a fair hearing so that the person effected can respond, and (c) the final decision is based on the evidence and free from bias. Incentive: The main purpose of incentives is to tie employee rewards to their performance. Higher rewards are linked to higher performance and the individual is motivated to strive for better and improved performance. It is different from the remuneration which is what the employee gets in exchange for his/ her routine contribution to the organization. It has the following other importance: Earning of the employees increased as a result of incentives; there is reduction in the total as well as the unit cost of production due to higher productivity achieved; and production activity is likely to increase as a result. Types of Incentives: 1. Individual incentives- salary plus commission to sales personnel. 2. Piece Rate system: Generally applicable to production workers. 3. Differential Piece rate: Fixing slabs of production targets. 4. Group and Organizational incentive system: Incentives systems to a group/ the organization as a whole. International Organization behavior: Increase in the business 30 fold in 1990s compared to 1960s. Causes: Improved communication & transportation, and liberalized policies. MNCs strive to increase their role in domestic markets. Reduction in transportation cost leads to manufacturing sub-assemblies in other countries. Take advantages of low labour cost. Companies follow competitors who have gone global.

Trends in International business (IB) : 1. Growth of business most costumers get majority of business from over seas markets. E.g. Infosys 75% 2. Int. Business is relates to owning of shares in foreign companies i.e. investment of money with without management control-Joint venture with local partners. E.g. Ford owns 25% of Mazda, GM, & Toyota in Japan. For, USA has joint venture with Volkswagen in Argentina. Joint venture with Honda & and British sterling. 3. International Business is extended to non-business activities like universities offering educational programmes abroad, health care & Research activities, Postal system & sports. 4. Unification of Germany, formation of EU, emergence of WTO & movement towards free market by eastern Block. since IB has come to stay & increasing each day, managers need to be aware of dynamics of Int. management. Cultural difference & Similarities: Cultural variations across nations that distinguish OB in Int. organization. Individual behavior in global perspective: Varying Individual differences, managerial behavior, motivation & rewards in operations across cultures cause variations in Industrial behaviour from culture to culture. Individual difference: Individualism vs collectism- Ind-US ,UK, Canada & Australia- priority to personal interests. Collectism- Group interest comes first- India, Singapore, Japan & Honkong. Power Distance- High power distance Vs low power distance High powerdistance managers make decisions and others follow- Pakistan, Brazil, Mexico France- Autocratic /military culture. Low power Subordinates obey only when they feel the orders as right USA, Canada, NZ, Aus etc. (c) Uncertainty Avoidance High /low Ability to take risk & face uncertainty high high- US, Australia. (d) Masculinity / Femininity Domination of work force by male/female, India is an example of masculinity. 2. Managerial Behavior o Managerial behavior affects employee behavior. The role of management i.e. purpose of organization structure varies across different cultures. Japanese just need to know who their boss is; Germany- managers job is to coordinate group behavior, were as in India, we have value based management. In Germany, the employees ignore value based system and bypass seniors to get things done. Motivation- Priority of needs vary from culture to culture. Security needs are primary in Japan, in Sweden, social needs come before any other needs where as

Indian culture is more Aesthetic ( everything is determined by god). However Americans believe that hard work leads to performance and success. Culture shock- Because of difference in cultures, an employee posted outside his/ her country will face confusion, disorientation, alienation and emotional upheaval. This is called Culture shock. Difference in climate, language and unfamiliar food habits will occur. Adjustment to foreign country takes a fair bit of time and occurs through different stages. Rewards across Cultures- Job security is valued more or less depending on different cultures. In USA, rewards like recognition, promotion, and merit pay increase are valued more where as in Japan, group rewards and recognition is valued more than personal rewards.

Interpersonal Behavior Group behavior mainly affecting Inter-personal behavior varies from culture to culture. It depends on Group dynamics and cultural diversity- people of various cultures tend to develop distrust at the beginning, managers need to remove this and work for group cohesiveness. Power and Conflict- This is more pronounced in US and UK. However, in Japan attempt of hoarding power will be foiled, group cohesiveness and group trusteeship will be encouraged. Communication- Differences in language and co- ordination occurs between different cultures. Short questions: What are barriers to communication? What are various types of groups? State the various states of ego in Transactional Analysis. What are the highlights of Trait theory of leadership? Compare cross-functional teams with self- managed teams. Discuss the nominal group technique of Decision Making. What do you mean by Performance -Appraisal ? List behavior related to Active listening. Differentiate between Transactional and Transformational theory of leadership. Define four basic forms of Conflict. What do you understand by Coercion ? Define communication. Define Leadrership. Define the concept of humanresource management. Differentiate between Recruitment and Selection. State the various states of ego in Transactional Analysis. What is Transactional Analysis? What is Unfreezing? What is boundary ess organization?

What do you mean by leadership grid? What is culture shock? What are the different types of organization designs? What are the factors responsible for Organisational change? Long Questions: Communication can be used as a tool for interpersonal effectiveness. Discuss the statement with your views. Management needs leaders. Explain this view with reference to Contigency theory. What are the different methods of Group Decision Making ? discuss the streangths and weaknesses of Group Decision Making. Explain positive, negative and balanced view of Conflict. What are the techniques of conflict handling styles ? Discuss different types of Barriers to Communication. How do self directed work team differs from conventional team? What can organizations do to reduce management resistance to self directed work teams? Discuss how would you improve interpersonal communication through Transaction Analysis ? Mgnt needs leaders Explain this view with reference to Contigency. How is Recruitment different from Selectin? Explain with reference to processes of both. Individual and interpersonal behavior has a global prospective. Explain the statement keeping the present industrial scenario of India in view. What are the methods of of Selection? Do you think that interview should be used to select candidates? What is organizational change? Describe the sources of individual and organizational resistance to the change? What is the three- component model of Creativity? Define leadership and discuss the strengths and weaknesses in the Trait theory of leadership. What is Matrix structure? When will the organization use it? What obstacles arise in Performance Apprisal? Also state in brief the important methods of Performance Apprisal based on the traits of the employees. Comment on the five main leadership positions depicted in Managerial Grid. Which would you advocate and why? Identify differences between leaders and managers. Describe the Trait model of Leadership.