Unit-2 Q.14 what do you mean by Personality traits? Ans.

There are various characteristics that describe an individual behavior. Popular characteristics include shyness, aggressiveness, submissiveness, laziness, ambition, loyalty and timidity. When these characteristics are exhibited in a large number of situations called personality traits. The more consistent the characteristics and the more frequently it occurs in diverse situations, the more important that trait is in describing the individual. Primary Traits 1. Reserved 2. Less intelligent intelligent 3. Affected by feelings stable 4. Submissive 5. Serious lucky 6. Expedient conscientious 7. Timid Venturesome 8. Tough- minded 9. Trusting 10.Practical 11.Forthright 12.Self- assured Apprehensive 13.Conservative Experimenting 14.Group-dependent 15.Uncontrolled 16.Relaxed The big Five Personality Traits The term Personality always has been difficult to describe. Many years ago in one study, 17,953 individual traits were identified to describe personality. After this one researcher isolated 171 traits but concluded that they were superficial and looking in descriptive power. The result of further reduction was the identification of 16 personality factor, which he called the source, or primary traits. So further reduction analysis found five core personality traits. In the field of organizational behavior the big five factors are: 1. Extra version: Sociable, talkative and assertive. Vs. Vs. Vs. Vs. Vs. Vs. Vs. Sensitive Suspicious Imaginative Shrewd Vs. Vs. Self sufficient controlled Tense Vs. Vs. Vs. Vs. Vs. Outgoing More Emotionally Dominant happy go Vs. Vs.

2. 3. 4. 5.

Agreeableness: Good-natured, cooperative and trusting. Conscientiousness: Responsible, dependable, persistent and achievementoriented. Emotional Stability: Viewed from a negative standpoint such as tense, insecure and nervous. Openness to Experience: Imaginative, artistically sensitive and intellectual.

Q.18 Describe major personality attributes which influence organizational behaviour. Ans. Some of the important personalities attributes that determine what kind of behaviors are exhibited at work include the following: Need Pattern -Steers and Braunstein in 1976 develop a scale for the four needs of personality that became apparent in the 'work environment? They are as follows: The need for achievement: Those with a high achievement need engage themselves proactively in work behaviors in order to feel proud of their achievements and successes. The need for affiliation: Those in greater need for affiliation like to work cooperatively with others. The need for autonomy: Those in need for autonomy function in the best way when not closely supervised. The need for dominance: Those high in need for dominance are very effective while operating in environments where they can actively enforce their legitimate authority.

Locus of Control Locus of control is the degree to which an individual believes that his or her behavior has direct impact on the consequences of that behavior. Some people, for example, believe that if they work hard they will certainly succeed. They strongly believe that each individual is in control of his or her life. They are said to have an internal locus of control. By contrast, some people think that what happens to them is a result of fate, chance, luck or the behavior of other people, rather than the lack of skills or poor performance on their part. Because- these individuals think that forces beyond their control dictate the happenings around them, they are said to have an external locus of control. As a personality attribute, locus of control has clear implications for organizations. For example, certain individuals have an internal locus of control, which means they have a relatively strong desire to participate in the management of their organizations and have a' freedom to do their jobs. Thus, they may prefer a decentralized organization where they have a right of decision-making and work with a leader who provides them freedom and autonomy. They may like a reward system that recognizes individual performance and contributions. Conversely, people with an external locus of control, are likely to prefer a more centralized organization where they need not take any decisions. They may incline to structured jobs where standard procedures are defined for them. They may prefer a leader who makes most of the decisions and a reward system that considers seniority rather than merit. Introversion and Extroversion Introversion is the tendency of individuals, which directs them to be inward and process feelings, thoughts and ideas within themselves. Extroversion, on the contrary, refers to the tendency in individuals to look outside them, searching for external stimuli with which they can interact. While there is some element of introversion as well as

extroversion in all of us, people tend to be dominant as either extroverts or introverts. Extroverts are sociable, lively and gregarious and seek outward stimuli or external exchanges. Such individuals are likely to be most successful while working in the sales department, publicity office, personal relations unit, and so on, where they can interact face to face with others. Introverts, on the other Hand, are quiet, reflective, introspective, and intellectual people, preferring to interact with a small intimate circle of friends. Introverts are more likely to be successful when they can work on highly abstract ideas such as R&D work, in a relatively quiet atmosphere. Since managers have to constantly interact with individuals both in and out of the organization and influence people to achieve the organization's goals, it is believed that extroverts are likely to be more successful as managers. Tolerance for Ambiguity This personality characteristic indicates the level of uncertainty that people can tolerate to work efficiently without experiencing undue stress. Managers have to work well under conditions of extreme uncertainty and insufficient information, especially when things are rapidly changing in the organization's external environment. Managers who have a high tolerance for ambiguity can cope up well under these conditions. Managers, who have a low tolerance for ambiguity may be effective in structured work settings but find it almost impossible to operate effectively when things are rapidly changing and much information about the future events is not available. Thus, tolerance for ambiguity is a personality dimension necessary for managerial success. Self-Esteem and Self-Concept Self-esteem denotes the extent to which individuals consistently regard themselves as capable, successful, important and worthy individuals. Self-esteem is an important personality factor that determines how managers perceive themselves and their role in the organization. Self-esteem is important to self-concept, i.e., the way individuals, define themselves as to who they are and derive their sense of identity. High selfesteem provides a high sense of self-concept, which, in turn, reinforces high selfesteem. Thus, the two are mutually reinforcing. Individuals with a high self-esteem will try to take on more challenging assignments and be successful. Thus, they will be enhancing their self-concept i.e., they would tend to define themselves as highly valued individuals in the organizational system. The higher the self-concept and self-esteem, the greater will be their contributions to the goals of the organization, especially when the system rewards them for their contributions. Authoritarianism and Dogmatism Authoritarianism is the extent to which an individual believes that power and status differences are important within' hierarchical social systems like organizations. For example, an employee who is highly authoritarian may accept directives or orders from his superior without much questioning. A person who is not highly authoritarian might agree to carry out appropriate and reasonable directives from his boss. But he may also raise questions, express disagreement and even refuse to carry out requests if they arc for some reason objectionable. Dogmatism is the rigidity of a person's beliefs and his or her openness to other viewpoints. The popular terms 'close-minded' and 'open-minded' describe people who are more and less .dogmatic in their beliefs respectively. For example, a manager may be unwilling to listen to a new idea related to doing something more efficiently. He is said to be a person who is close-minded or highly dogmatic. A manager who is very receptive to hearing about and trying out new ideas in the same circumstances might be seen as more open-minded or less dogmatic. Dogmatism can be either beneficial or detrimental to organizations, but given the degree of change in the nature of organizations and their environments, individuals who are, not dogmatic are most likely to be useful and productive organizational members.

Risk Propensity Risk-propensity is the decree to which an individual is willing to take chances and make risky decisions. A manager with a high-risk propensity might be expected to experiment with new ideas and to lead the organization in new directions. In contrast, a manager with low risk propensity might lead to a stagnant and overly conservative organization. Machiavellianism Machiavellianism is manipulating or influencing other people as a primary way of achieving one's goal. An individual tends to be Machiavellian, if he tends to be logical in assessing the system around, willing to twist and turn facts to influence others, and try to gain control of people, events and situations by manipulating the system to his advantage. Type A and B Personalities Type A persons feel a chronic sense of time urgency, are highly achievement-oriented, exhibit a competitive drive, and are impatient when their work is slowed down for any reason. Type B persons are easy-going individuals who do not feel the time urgency, and who do not experience the competitive drive. Type A individuals are significantly more prone to heart attacks than Type B individuals. While Type A persons help the organization to move ahead in a relatively short period of time they may also suffer health problems, which might be detrimental to both themselves and the organization in the long run. Work-Ethic Orientation Some individuals are highly work-oriented while others try to do the minimum Work that is necessary to get by without being fired on-the-job. The extremely work oriented person gets greatly involved in the job. Extreme work ethic values could lead to traits of "workaholics" where work is considered as the only primary motive for living with very little outside interests. For a workaholic turning to work can sometimes become a viable alternative to facing non-work related problems. A high level of work ethic orientation of members is good for the organization to achieve its goals. Too much "workaholics", however, might lead to premature physical and mental exhaustion and health problems, which is dysfunctional for both organization and the workaholic members. The above ten different personality predispositions managerial and organizational effectiveness. are important for individual,

Unit -4 Q.1 what is leadership? Write its nature. Or Is leader born or made? Justify your view with contemporary examples. Or Write short notes on: Role and functions of a leader.

Ans. Leadership Behaviour Many researches have been done on the leadership behaviour, successful leadership depends on appropriate behaviour skills, actions and less on personnel traits. Three broad types of skills leader use are conceptual, human and technical. 1. Conceptual Skill: Ability to work with abstractions and hypothetical notations, ability to deal with ideas and concepts that have potential to shape the organization in the future. People with conceptual skills have good imagination and ability to simulate their creativity with the process of synthesis and analysis. These are cognitive abilities, whether they are natural or learned/acquired with time. Conceptual skills are central to creating a vision and strategic plans for an organization. 2. Human Skill: Human skills are people-skills; these are abilities of the leaders to effectively work with subordinates, peers and bosses. The soft skills can be considered as "traits" for people who have them naturally and "skills" for others who have to train themselves consciously to be more effective in dealing with others. The human skills have large extent and high complexity, one end is orator and communication skills while the other end is dealing with multi party negotiations. 3. Technical Skills: The job knowledge required for a particular leadership role can be termed as the technical skills. The leader must understand the output of the organization in terms of product or services, without which he cannot possibly utilize his conceptual skills to their maximum ability. The next step is to have good knowledge of organization management processes to boost the effectiveness. Q.8 Write short note on following. (1) Transformational leadership (2) Charismatic leadership (3) Visionary leadership

Or What do you understand by charismatic leadership? Write its salient features. Or Discuss neocharismatic theories. Or What do you mean by transformational leadership? Differentiate between transactional and transformational leadership. Ans. Any type of organization runs successfully when it is piloted by a skillful and influential leader. While leaders motivate their followers, it is not the only thing leaders can do. A good leader can structure the organization in the way he wants. He represents the culture of the organization and most importantly, it has been observed that effective leaders posses a capacity to increase the productivity of the organization. Various scholars categorize leadership styles in a different way. Lewin (1939) classifies leadership styles in three categories: Autocratic Leadership, Democratic Leadership and Delegative (Laissez-Faire) Leadership. Max Weber classifies leaders as Bureaucratic Leader, Traditional Leaders and Charismatic Leaders. 1978 Burns defined yet another classification: Transactional Leaders and Transformational Leaders. Burns Transformational Leadership is similar to Charismatic Leadership style proposed by Weber. Since 1978 a lot of research has been done on various aspects of charismatic leadership.

Charismatic leadership Weber defines charismatic leadership as resting on devotion to the exceptional sanctity, heroism or exemplary character of an individual person, and of the normative patterns or order revealed or ordained by him. He envisaged religious leaders like

Jesus as charismatic leaders. Later researches considered various social-political leaders like Mahatma Gandhi as charismatic leaders. Dictators like Hitler also had some charismatic traits. These were the leaders with exceptional qualities which made them almost god-like for their followers. The charm of such people made their followers go behind these leaders without questioning them. While analyzing such a strong bond between the leaders and his followers Weber focuses on the social patterns and conditions under which the leader exists. However, the later researches throw light on the psychological attributes of the leaders which make them successful charismatic leaders. Research shows that charismatic leaders appeal strongly to the values of the followers and it is this psychological bondage between the two which makes the charismatic leadership succeed. Neither the sociologically oriented Weberian approach nor the psychological approach alone can explain charismatic leaders. The approaches together, however, give the better analysis of charismatic leadership. A Charismatic leader is one who provides an environment full of energy and positive reinforcement. If you are naturally charismatic, you are very fortunate! This is a trait that is not so easily learned. Key characteristics of charismatic leaders 1.Vision and articulation: Has a vision expressed as a idealized goal that proposes a future better than the status quo, and is able to clarify the importance of the vision in terms that are understandable to others. 2. Personal risk: Willing it take on high personal risk, incur high costs and engage in self sacrifice to achieve the visions. 3. Environmental sensitivity: They are able to make realistic assessments of the environmental constraints and resources needed to bring about change. 4. Sensitivity to follower needs: Perceptive of others abilities and responsive to their needs and feelings. 5. Unconventional Behavior: Engages in behavior that is perceived as novel and counter to norms. Charismatic Leaders are often thought of as heroes that are able to use their personal allure to lead others. But that charismatic charm can be both a blessing and a curse on society. That's because charisma can be used for the good of a company or nation but also for less-than-honorable reasons. Pros and Cons of Charismatic Leaders Charismatic leaders are able to use their personal charm to get things done. This can be an extremely powerful way to lead others. In fact, such strong charismatic influence can be achieved over followers that these leaders can make certain individuals accomplish some pretty extraordinary tasks. Pros of Charismatic Leaders Charismatic leaders have the ability to sense the gap that exists between what an organization is delivering to its followers, and what the followers need from an organization. This allows the leader to create a vision of a future state that everyone believes will be better than today's environment.

The charismatic leader often articulates this vision using metaphors and stories in ways that everyone can understand the vision. The followers see the leader as one that possesses the ability to visualize the future with clarity. The followers are also able to see how they fit into this future state, and believe it will be better than today. Since followers can see themselves in this future vision, they support the goals of the organization and the leaders more readily. Rather than resorting to coercion, the charismatic leader builds trust among followers. Cons of Charismatic Leaders Charismatic leaders achieve their vision through persistence and personal sacrifice. These leaders become role models for their organizations. Since followers share in the vision, they are empowered to make decisions that move the organization more quickly towards the goal. Some followers may find this transformation uncomfortable and disruptive to the workplace or to them personally. Others may have difficulty relating to the leader's vision of the future. Charismatic leaders also rely heavily on their personal charm, and perceptions, which could be significantly influenced by rumors or "negative press." Charismatic Leaders in the Workplace Charismatic leaders in the workplace can sometimes make a difference for a company. Other companies will do just fine without such a leader. As mentioned in previous articles, the situational leadership abilities of the leader are an important factor in determining success. When place in certain conditions, charismatic leaders can help to transform a company. In fact, charismatic qualities are very similar to those found in transformational leadership roles. Charismatic leaders can lead organizations into new areas, inspire followers, and sometimes obtain extraordinary performance and results from an organization. First described by Max Weber in 1947 as one of three leadership styles Bureaucratic, Traditional and Charismatic - the study of this style later evolved with the thoughts of Burns into a transformational leader. Whether you think Weber or Burns is correct in their model of leadership styles is not important, what is important is to understand what characteristics charismatic leaders practice or possess. There appear to be at least four stages in the evolution of a charismatic leader, and they achieve these results by appealing to the followers in very simple ways. When the charismatic leader finally achieves the status of "hero," the organization is likely to have been rescued. Transformational Leadership Transformational leadership is a form of leadership that occurs when leaders broaden and elevate the interests of their employees, when they generate awareness and acceptance of the purposes and the mission of the group and when they stir their employees to look beyond their own self-interest for the good of the group (Bernard Bass, 1990). Transformational leaders have a clear collective vision and most importantly they manage to communicate it effectively to all employees. By acting as role models, they inspire employees to put the good of the whole organization above self interest. They also stimulate employees to be more innovative, and they themselves take personal risks and are not afraid to use unconventional (but always ethical) methods in order to achieve the collective vision.

This form of leadership goes beyond traditional forms of transactional leadership that emphasized corrective action, mutual exchanges and rewards only when performance expectations were met. Transactional leadership relied mainly on centralized control. Managers controlled most activities, telling each person what, when and how to do each task. Transformational leaders, on the other hand, trust their subordinates and leave them space to breathe and grow. In that respect, transformational is a more developmental and constructive form of leadership for both individual employees and the organization as a whole. The Components of Transformational Leadership 1. Intellectual Stimulation Transformational leaders not only challenge the status quo; they also encourage creativity among followers. The leader encourages followers to explore new ways of doing things and new opportunities to learn. 2. Individualized Consideration Transformational leadership also involves offering support and encouragement to individual followers. In order to foster supportive relationships, transformational leaders keep lines of communication open so that followers feel free to share ideas and so that leaders can offer direct recognition of each followers unique contributions. 3. Inspirational Motivation Transformational leaders have a clear vision that they are able to articulate to followers. These leaders are also able to help followers experience the same passion and motivation to fulfill these goals. 4. Idealized Influence The transformational leaders serves as a role model for followers. Because followers trust and respect the leader, they emulate the leader and internalize his or her ideals. Transactional Leadership is a term used to classify a formally known group leadership theories that inquire the interactions between leaders and followers. A transactional leader focuses more on a series of "transactions". This person is interested in looking out for oneself, having exchange benefits with their subordinates and clarifies a sense of duty with rewards and punishments to reach goals. This dimension of leadership focus on clarifying employees' role and task requirements. It provides followers with positive and negative rewards based on their performance. Transactional leadership implements the fundamental managerial activities such as setting goals, monitoring progress towards the goal achievement and rewarding people according to their performance towards the goal achievement. This kind of leadership uses extrinsic motivation to increase productivity. Who guide or motivate their followers in the direction of established goals by clarifying role and task requirements. Transactional Leadership V/s. Transformational Leadership Following table shows difference of transactional and transformation leadership. Transactional Leadership * Leaders are aware of the link between the effort and reward * Leadership is responsive and its basic orientation is dealing with present issues * Leaders rely on standard forms of inducement, reward, punishment and Transformational Leadership * Leaders arouse emotions in their followers which motivates them to act beyond the framework of what may be described as exchange relations * Leadership is proactive and forms new expectations in followers * Leaders are distinguished by their capacity

sanction to control followers * Leaders motivate followers by setting goals and promising rewards for desired performance * Leadership depends on the leaders power to reinforce subordinates for their successful completion of the bargain.

to inspire and provide individualized consideration, intellectual stimulation and idealized influence to their followers * Leaders create learning opportunities for their followers and stimulate followers to solve problems * Leaders possess good visioning, rhetorical and management skills, to develop strong emotional bonds with followers

Why is transformational leadership important for organizational functioning? Numerous studies have shown that transformational leadership: Significantly increases organizational performance. Is positively linked with long term market share and customer satisfaction. Generates higher commitment to the organization from their employees. Increases employee trust in management and organizational citizenship behaviors (i.e., extra-role work-related behaviors such as conscientiousness, altruism and sportsmanship that are discretionary, not related to the formal reward system of the organization) Enhances employee satisfaction with both their job and the leader Reduces employee stress and increases wellbeing. How do transformational leaders behave? Transformational leaders: Articulate a compelling vision of the future. Use stories and symbols to communicate their vision and message. Specify the importance of having a strong sense of purpose and a collective mission. Talk optimistically and enthusiastically and express confidence that goals will be achieved. Engender the trust and respect of their followers by doing the right thing rather than doing things right. Instill pride in employees for being associated with them. Talk about their most important values and beliefs. Consider the moral and ethical consequences of decisions. Seek different perspectives when solving problems. Get employees to challenge old assumptions and to think about problems in new ways. Spend time teaching and coaching. Consider each individual employees different needs, abilities and aspirations. Are compassionate, appreciative and responsive to each employee and recognize and celebrate each employees achievements. Visionary Leadership Visionary leaders are the builders of a new dawn, working with imagination, insight, and boldness. They present a challenge that calls forth the best in people and brings them together around a shared sense of purpose. They work with the power of intentionality and alignment with a higher purpose. Their eyes are on the horizon, not just on the near at hand. They are social innovators and change agents, seeing the big picture and thinking strategically.

There is a profound interconnectedness between the leader and the whole, and true visionary leaders serve the good of the whole. They recognize that there is some truth on both sides of most polarized issues in our society today. They search for solutions that transcend the usual adversarial approaches and address the causal level of problems. They find a higher synthesis of the best of both sides of an issue and address the systemic root causes of problems to create real breakthroughs. Example: Michel Dell has created a vision of a business that allows Dell computers to sell and deliver a finished PC directly to a customer in fewer than eight days. Visionary leadership requires: Creating a vision, a mission, and a strategy. Communicating the vision/mission/strategy and getting buy-in. Motivating action. Helping an organization grow, evolve, and adapt to changing circumstances.

The leader must also provide a missionwhat needs to be doneand a strategy, a path, for how to accomplish the mission and achieve the vision, a way for the group to get there. But having an exciting vision, an exciting mission, and a careful strategy is not sufficient. A leader must clearly communicate them. Only if people grasp the vision can they commit to it, and buy-in is crucial to motivating action. Finally, a vision cannot be rigid and unchanging; it must adapt to changing circumstances, growing and evolving. Otherwise it becomes outdated and obsolete, and loses its power to excite and motivate people.

Unit-5 Q.4 what is organizational Development? Describe the organizational development techniques of interventions for bringing about change.(Page No. Or Write short note on: (a) Organizational Development. (b) Organizational Development interventions. Or

What do you understand about organizational Development and how it is different from organizational change? Or How organizational Development in linked with organizational Behaviour? Or Describe the Organizational Development approaches for bringing about change? Ans. ORGANIZATIONAL DEVELOPMENT The term Organizational Development (OD) refers to a broad range of behavioral science based strategies used to diagnose the need for change in organizations and to implement changes when necessary. OD can be defined as a technique for bringing change in the entire organization, rather man focusing attention on individuals to bring change easily in the entire organization.

Organization development is simply a planned effort to increase the organization's effectiveness and capability. Organizational development brings changes to the attitudes, values and beliefs of organization, so that people can adapt to new technologies and challenges of the business. OD includes both inventions and innovations along with the involvement of major stakeholders and people in the organization in the process of growth and development. According to practical experience, OD can also be defined as the process of working together with organizations, organization leaders and organization groups in bringing systematic change to the root problems and hence increasing productivity and employee satisfaction. OD offers three things: what we do, how we do and the results we get. By properly understanding all three aspects, you can solve critical aspects of the organization. We can say hundreds of definitions for OD but it can be simply summarize as the process for a group to achieve its goals, mission and vision in the most effective and efficient manner possible. Nature of OD OD is a general strategy or approach to organizational change method is employed to analyze and diagnose the sources of organizational problems and to develop and implement action plans for their solution. According to Bennis, OD has the following characteristics; It is an educational strategy for bringing planned change. It relates to real problems of an organization. Laboratory training methods based on experienced behavior are primarily used to bring change. Change agent applying OD technique for change is external to the forms of consultants. There is a close working relationship between change agents and the people who are being changed. The relationships involve mutual trust, joint goals, means, and mutual influence. The change agents share social philosophy about human value. They are humanists seeking to get a humanistic philosophy in organization. Organization Development Interventions Organization Development (OD) interventions techniques are the methods created by OD professionals and others. Single organization or consultant cannot use all the interventions. They use these interventions depending upon the need or requirement. The most important interventions are , 1. Survey feedback 2. Process Consultation 3. Sensitivity Training 4. The Managerial grid 5. Goal setting and Planning 6. Team Building and management by objectives 7. Job enrichment, changes in organizational structure and participative management and Quality circles, ISO, TQM Survey feedback: The intervention provides data and information to the managers. Information on Attitudes of employees about wage level, and structure, hours of work, working conditions and relations are collected and the results are supplied to the top executive teams. They analyze the data, find out the problem, evaluate the results and develop the means to correct the problems identified. The team are formed with the employees at all levels in the organization hierarchy i.e., from the rank and file to the top level. Process Consultation: The process consultant meets the members of the department

and work teams observes the interaction, problem identification skills, solving procedures etc. He feeds back the team either the information collected through observations, coaches and counsels individuals & groups in moulding their behavior Goal setting and planning: Each division in an organization sets the goals or formulates the plans for profitability. These goals are sent to the top management which in turn sends them back to the divisions after modification. A set of organization goals thus emerge thereafter. Managerial grid: This identifies a range of management behavior based on the different ways that how production/service oriented and employee oriented states interact with each other. Managerial grid is also called as instrumental laboratory training as it is a structured version of laboratory training. It consists of individual and group exercises with a view to developing awareness of individual managerial style interpersonal competence and group effectiveness. Thus grid training is related to the leadership styles. The managerial grid focuses on the observations of behaviour in exercises specifically related to work. Participants in this training are encouraged and helped to appraise their own managerial style. There are 6 phases in grid OD: First phase is concerned with studying the grid as a theoretical knowledge to understand the human behavior in the Organization. Second phase is concerned with team work development. A seminar helps the members in developing each members perception and the insight into the problems faced by various members on the job. Third phase is inter -group development. This phase aims at developing the relationships between different departments Fourth phase is concerned with the creation of a strategic model for the organization where Chief Executives and their immediate subordinates participate in this activity. Fifth phase is concerned with implementation of strategic model... Planning teams are formed for each department to know the available resources, required resources, procuring them if required and implementing the model Sixth Phase is concerned with the critical evaluation of the model and making necessary adjustment for successful implementation. Management by Objectives (MBO) is a successful philosophy of management. It replaces the traditional philosophy of Management by Domination. MBO led to a systematic Goal setting and planning. Peter Drucker the eminent management Guru in 1959 has first propagated the philosophy since then it has become a movement. MBO is a process by which managers at different levels and their subordinates work together in identifying goals and establishing objectives consistent with Organizational goals and attaining them. Team building is an application of various techniques of Sensitivity training to the actual work groups in various departments. These work groups consist of peers and a supervisor. Sensitivity training is called a laboratory as it is conducted by creating an experimental laboratory situation in which employees are brought together. The Team building technique and training is designed to improve the ability of the employees to work together as teams. Job enrichment is currently practiced all over the world. It is based on the assumption in order to motivate workers; job itself must provide opportunities for achievement, recognition, responsibility, advancement and growth. The basic idea is to restore to jobs the elements of interest that were taken away. In a job enrichment program the

worker decides how the job is performed, planned and controlled and makes more decisions concerning the entire process. Q.7 Short note on: Organizational culture. Or What is organizational culture? How Indian core values help the organization in development /improvement of companies culture? Or Write the fundamental characteristics of organizational culture? Ans. CONCEPT OF ORGANIZATIONAL CULTURE Organizational culture is the sum total of an organization's past and current assumptions, experiences, philosophy, and values that hold it together, and is expressed in its self-image, inner workings, interactions with the outside world, and future expectations. It is based on shared attitudes, beliefs, and customs, express or implied contracts, and written and unwritten rules that the organization develops over time and that have worked well enough to be considered valid. Also called corporate culture, it manifests in (1) the ways the organization conducts its business, treats its employees, customers, and the wider community, (2) the extent to which autonomy and freedom is allowed in decision making, developing new ideas, and personal expression, (3) how power and information flow through its hierarchy, and (4) the strength of employee commitment towards collective objectives. It is termed strong or weak to the extent it is diffused through the organization. It affects the organization's productivity and performance, and provides guidelines on customer care and service; product quality and safety; attendance and punctuality; and concern for the environment. It extends also to production-methods, marketing and advertising practices, and to new product creation. While there are many common elements in the large organizations of any country, organizational culture is unique for every organization and one of the hardest things to change. Organizational culture is the set of values that states what an organization stands for, how it operates and what it considers important. According to Deal and Kennedy, a strong culture is. "A system of informal rules that spells out how people have to behave most of the time". Schein defines organizational culture as the pattern of basic assumptions that a given group has invented, discovered and developed while learning to cope with its problems of external adaptation and internal integration. All the above definitions stress acceptable and unacceptable behavior of its members. For instance, one organization might value solidarity and loyalty to organization more than any other value whereas another organization might stress on good relations with customers. Such values are part of organizational culture in spite of not being formally written like rules and regulations of the organization. They do not usually appear in the organizational training Program and in fact, many organizations have difficulty in expressing their cultural values. However, an organization's values automatically enter every employee's personal values and actions over a period of time. Organizational culture has a profound influence on individual employees because it is generally an accepted set of values rather than a written set of rules with which employees might not argue. Primary Characteristics of Organizational Culture let us understand the primary characteristics of organizational culture that help shape up the organization's 'personality'. These are very general characteristics that every organization would have to look into; otherwise the culture would seem incomplete. Although all these characteristics are at some level a part of every company, the importance and individual interpretation of each differs from business to business, thus making each business unique in its own way. There are 7 primary characteristics of organizational culture. They are listed below.

1. Innovation and Risk Taking: Risk and returns go hand in hand. Places where you take a risk (calculated risk of course!), the chances of returns are higher. Same goes for innovation. You could either be a follower or a pioneer. Pioneering has its share of risks, but at times it can also have a breakthrough outcome for the organization. Thus, innovation and risk taking is one of the main characteristics of organizational culture defining how much room the business allows for innovation. 2. Attention to Detail: Attention to detail defines how much importance a company allots to precision and detail in the workplace. This is also a universal value as the degree of attention the employees are expected to give is crucial to the success of any business. The management defines the degree of attention to be given to details. 3. Outcome Orientation: Some organizations pay more attention to results rather than processes. It is really the business model of each business that defines whether the focus should be on the outcome or the processes. This defines the outcome orientation of the business. 4. People Orientation: This is still one of the most contentious issues in organizational culture today. How much should be the management focus on the people? Some organizations are famous for being employee oriented as they focus more on creating a better work environment for its 'associates' to work in. Others still are feudal in nature, treating employees no better than work-machines. 5. Team Orientation: It is a well established fact today that synergistic teams help give better results as compared to individual efforts. Each organization makes its efforts to create teams that will have complementary skills and will effectively work together. 6. Aggressiveness: Every organization also lays down the level of aggressiveness with which their employees work. Some businesses like Microsoft are known for their aggression and market dominating strategies. 7. Stability: While some organizations believe that constant change and innovation is the key to their growth, others are more focused on making themselves and their operations stable. The managements of these organizations are looking at ensuring stability of the company rather than looking at indiscriminate growth. Just like having a strong personality adds character to a person, organizational culture does give a business its own special identity. It helps create cohesion among the employees as they share the primary characteristics of organizational culture and imbibes in them the spirit of team work. Importance of Culture Culture plays a very significant role in any organization by communicating information about the overall acceptable and unacceptable behavior. Culture communicates whether the organization expects its managers to be aggressive or conservative in decisions-making, generous or moderate in supporting social causes and ruthless or kind in competitive dealings. Some organizations have clear, strong and well-defined culture whereas: others have ambiguous, weak and poorly defined cultures. Most managers agree that a strong and clear culture is preferable to weak and vague culture because it helps to provide a common frame of reference for managerial decision-making and a wide variety of other organizational activities.

An organizational culture generally lakes shape over time and is often deeply influenced by the values of the organizational founders. As organizational culture evolves, various symbols, stories, heroes, slogans and ceremonies also come into being. These, then, serve to maintain and perpetuate the culture through subsequent generations of employees.

Changing Organizational Culture Change is most often needed when the organization has lost its effectiveness and is struggling to either" carry out or change its strategic goals. The manager trying to change an organizational culture faces lots of difficulties. Because organizational culture embody the organizational values, which are embedded in organization's soul that stays stable irrespective of the changes in leadership and environment. It is, however, possible to change organizational culture, to improve the organization performance. For this managers must change employee's ideas about what is and what is not appropriate behavior. They must create new role model and new stories to help employees understand the meaning of what is happening around them. One way to brine about such changes is to manage the symbols that are important to the organization. An organization's suggestion box is a symbol of an organization's openness to the ideas of the employees. Some organizations try to emphasize the importance of employees ideas by rewarding them for their suggestions. However, if the suggestion box remains just a symbol and organization never translates the suggestions into actions, the box will have little effect on organization morale. Once successfully made, changes in the organizational culture will be as stable as the old culture was. However, any organization willing to change its culture must realize that such a change is never easy and cannot be brought about simply by ordering employees. Q.8 Write about the relevance of organizational culture in the changing scenario. Or Write short note on: Importance of organizational culture Ans. The presence of a strong and appropriate organizational culture has become essential for an organization to function effectively and efficiently in the modern era. Organizational culture is the consciously or subconsciously accepted and followed way of life or manner of performing day-to-day activities in an organization. It plays an important role in determining and controlling employee behavior at workplace. The core values, assumptions, norms, procedures, etc. that are followed in an organization constitute its culture. These are more often than not, accepted and followed throughout the organization, without much deviation. However, the presence of individuals from various social cultures and backgrounds in an organization, may lend a slight variation to the beliefs and ideologies of the organizational members. This difference results in the formation of subcultures within organizations. The presence of subcultures may be advantageous to an organization as the deviations from the norm may throw up alternatives to existing practices, which are often useful to the organization in adapting to changes in the external environment. Such adaptability is essential for the organization to survive. However, if the differences in ideologies go beyond a desirable level, they may have a negative effect on the organization and undermine it. The strength of an organizational culture depends on the sharedness and intensity of the core values of the organization. A strong culture tends to enhance employee commitment and loyalty towards the

organization. Organizational cultures have been classified into four major types market culture, adhocracy, clan culture and hierarchical culture. Organizational culture deals with the internalization of the core values and norms. If the organizational culture is well internalized, it can replace the formalization of rules and procedures in an organization. The difference between the two lies in the fact that, while formalization deals with the standardization of jobs and involves documentation of accepted values and norms, a strong organizational culture can achieve a certain amount of uniformity in work processes without documentation being required. Organizational culture plays a variety of roles in strengthening bonds between the members of an organization. The boundary-defining role of organizational culture implies that it helps to draw distinctions between one organization and another. It also creates a sense of identity and belongingness among the employees of the organization. Organization culture synergizes the efforts of organizational members towards the achievement of the common objectives of the organization. It also maintains the stability of the social system in the organization by minimizing individual differences between employees. Organizational culture is determined largely by the values, assumptions and personal traits of the founders. These values lay the foundation for the organizational culture, which is then accepted and followed throughout the organization. Culture in organizations is also learnt by its members through artifacts like stories, legends, rituals and material symbols. Stories pertaining to significant events in the company's history, the rituals of the organization, and even material symbols such as the physical layout of the organization, serve to transmit the core values of the organization. Language, which refers to the commonly used terminology, jargon and acronyms unique to a particular organization, also helps in the permeation of organizational culture. Importance of Organizational culture Organizational culture is even more important today than it was in the past. Increased competition, globalization, mergers, acquisitions, alliances, and various work force developments have created a greater need for organizational culture. 1. A strong culture is a talent attractor - organizational culture is part of the package that prospective employees look at when assessing your organization. Gone are the days of selecting the person you want from a large eager pool. The talent market is tighter and those looking for a new organization are more selective than ever. The best people want more than a salary and good benefits. They want an environment they can enjoy and succeed in. 2. A strong culture is talent retainers- How likely are people to stay if they have other options and dont love where they are? Your organizational culture is a key component of a persons desire to stay. 3. A strong culture engages people- People want to be engaged in their work. According to a Gallup survey at least 22 million American workers are extremely negative or actively disengaged this loss of productivity is estimated to be worth between $250-$300 Billion annually. Your culture can engage people. Engagement creates greater productivity, which can impact profitability. 4. A strong culture creates energy and momentum - Build a culture that is vibrant and allows people to be valued and express them and you will create a very real energy. That positive energy will permeate the organization and create a new momentum for success. Energy is contagious and will build on itself, reinforcing the culture and the attractiveness of the organization.

5. A strong culture changes the view of work -Most people have a negative connotation of the word work. Work equals drudgery, 9-5, the salt mine. When you create a culture that is attractive, peoples view of going to work will change. 6. A strong culture creates greater synergy- A strong culture brings people together. When people have the opportunity to communicate and get to know each other better, they will find new connections. These connections will lead to new ideas and greater productivity in other words, you will be creating synergy. Literally, 1 + 1 + right culture = more than 10. A strong culture makes everyone more successful Any one of the other six reasons should be reason enough to focus on organizational culture. But the bottom line is that an investment of time, talent and focus on organizational culture will give you all of the above benefits. Not only is creating a better culture a good thing to do for the human capital in the business, it makes good business sense too.

Unit-6 Q.2 what is meant by Resistance to change? How the change can be implemented successfully? Or Write short note on: Resistance to change. Or Discuss Resistance to change. Explain ways and means to overcome resistance to change. Ans. Resistance to change Definition Resistance to change is the action taken by individuals and groups when they perceive that a change that is occurring as a threat to them. Key words here are 'perceive' and 'threat'. The threat need not be real or large for resistance to occur. In its usual description it refers to change within organizations, although it also is found elsewhere in other forms. Resistance is the equivalent of objections in sales and disagreement in general discussions. Resistance may take many forms, including active or passive, overt or covert, individual or organized, aggressive or timid. Although organizations initiate changes in order to adjust to the changes in their environments but people sometimes resist them. Therefore, managers need to recognize the manifestations of resistance both in themselves and in others, if they want to be more effective in supporting change. For example, managers can use the list given in following table.

Acceptance

Enthusiasm Cooperation

Cooperation under pressure from management Acceptance Passive resignation Indifference

Indifference

Apathy: loss of interest in the job Doing only what is ordered Regressive behavior Non-learning Protests Working to rule Doing as little as possible Slowing down Persona! withdrawal (increased time off the job) Committing "errors" Spoilage Deliberate sabotage

Passive Resistance

Active Resistance

The sources of resistance to change within organizations are classified into organizational sources of resistance and individual sources of resistance. ORGANIZATIONAL SOURCES OF RESISTANCE According to Daniel Kantz and Robert L Khan, organizational sources of resistance can be divided into following six general groups. Over determination or structural inertia refers to the tendency of an organization's rules, policies and structure to maintain the existing conditions and therefore resist change even when change would benefit the organization more than stability. When an organization tries to change one of its division or part of the division without recognizing the interdependence of the division with other divisions of the organization, then it is said to have a narrow focus of change. Often a part of division cannot be changed without changing the whole division. Group inertia may weaken an individuals attempt to bring about change. Resistance may also take the form of threatened expertise if the change lends to weaken special expertise built after years of experience. Organizational restructuring that involves reducing the number of job categories often meets this kind of resistance. Any change that may alter the power relationships within an organization may meet the form of resistance known as threatened power. Resistance may occur when a change threatens quantum of resource allocation from one part of the organization to another.

Individual Sources of Resistance

According to researchers, individuals have the following reasons for resisting change: Simple habits create a lot of resistance. Most people prefer to do their work the way they did it last week rather than learn a new approach. Perhaps the biggest cause of employee resistance to change is uncertainty. In the face of impending change, employees are likely to become anxious and nervous. They worry about their ability to meet new job demands therefore, leading to feeling of job insecurity. Some people resist change to avoid feeling of loss. For example, many organizations change interventions and alter work arrangements, thus disrupting existing social networks. Social relationships are important to most people, so they resist any change that might adversely affect those relationships. Change may also threaten people's feelings of familiarity and self-confidence. People may resist change because their perceptions of underlying circumstances differ from the perceptions of those who are promoting the change.

Valerie Stewart (1983), a British Psychologist and business consultant, has listed the following characteristics of people who are good at managing changes. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. They know clearly what they want to achieve. They can translate desires into practical action. They can propose changes not only from their own view point but also from that of others. They show reverence for tradition and respect for experience. They are not discouraged by setbacks. They harness circumstances to implement change. They clearly explain change to people affected by change. They involve their staff in the management of change and protect their security. They do not pile one change on another but wait for assimilation. They present changes as a relational decision. They make change by personally rewarding people, wherever possible. They share maximum information about possible outcomes. They show that change is related to business or job. They have a history of successful change. OVERCOMING RESISTANCE TO CHANGE Managers need not abandon planned change in the face of resistance. Before recommending specific approaches to overcome resistance, there are three key conclusions that should be kept in mind. First, an organization must be ready for change. Second, the top management should inform the employees about the process of change. Third, the employees perceptions or interpretations of a change should be considered. The following methods of overcoming-resistance to change are as follows: Participation: Participation is generally considered the most effective technique for overcoming resistance to change. Employees who take part in planning and implementing change are better able to understand the reasons for the change than those who are not involved. They become committed to the change and make it work. Employees who have the opportunity to express their own ideas and to understand the perspectives of others are likely to accept change gracefully. It is a time consuming process. Education and Communication: Educating employees about the need for and the expected results of an impending change help reduce their resistance. Managers should maintain an open channel of communication while planning and implementing change. However, it is also a time consuming process.

Facilitation of Change: Knowing ahead of lime that employees are likely to resist change then the manager should do as much as possible to help them cope with uncertainly and feeling of loss. Introducing change gradually, making only necessary changes, announcing changes in advance and allowing time for people to adjust to new ways of doing things can help reduce resistance. Force-Field Analysis: In almost any situation where a change is being planned, there are forces acting for and against the change. In force-field analysis, the manager list each set of forces and then try to remove or minimize some of the forces acting against the change. Negotiation: Where someone or some group will clearly lose out in a change and where that group has considerable power to resist, there negotiation is required. Sometimes it is a relatively easy way to avoid major resistance. Manipulation and Cooperation: This is followed when other tactics will not work or are too expensive. It can be quick and inexpensive; however, it can lead to further problems if people feel manipulated. Explicit and Implicit Coercion: This is adopted where speed is essential and where the change initiators possess considerable power. It is speedy and can overcome resistance.

Each of the above methods has its advantages and disadvantages. There is no universal strategy for overcoming resistance to change. Hence, an organization that plans to introduce certain changes must be prepared to face resistance from its employees. An organization should also have a planned approach to overcome such resistances. Q. 3 Write short note on: Management of change. Or Discuss the theoretical background and process of managing change and organizational development. Or Describe various approaches to managing change. Or Write short note on: Lewins Three -step model. Or Explain the following: Approaches to managing organizational change. Ans. APPROACHES TO ORGANIZATIONAL CHANGE As organizational change is a complex process, therefore managers must approach it systematically and logically. Some organizational changes are planned whereas other changes are reactive. Planned change is designed and implemented by an organization in an orderly and timely fashion in the anticipation of future change.

Reactive change results from a reaction of an organization to unexpected events. In contrast to planned change, it is a piece-meal response to circumstances as they develop. External forces that the organization has failed to anticipate or interpret always bring about reactive change. Since reactive change may have to be carried out hastily, it increases the likelihood of a poorly conceived and poorly executed Program. Planned change is always preferable to reactive change. Managers who sit back and respond to change only when they can no longer avoid it are likely to waste a lot of time and money trying to patch together a last-minute solution. The more effective approach is to anticipate the significant forces for change working in an organization and plan ways to address them. To accomplish this, managers must understand the steps needed for effective change. A COMPREHENSIVE MODEL OF CHANGE

The comprehensive model of change shown in the figure 20.1 shows seven steps that can lead to effective change. This model is useful for both planned and reactive change. The seven steps of comprehensive model of change are as follows:

Recognize need for change The first step in this model is recognizing need for change. For marketing managers who anticipate needed. Change, recognition is likely to come much earlier, as a result of marketing forecasts indicating new market potential, expert indications about impending socio-economic change or a perceived opportunity to capitalize on a key technological breakthrough. These managers tend to initiate change because they expect it to be necessary in the near future in any case. Establish goals for change The manager must then set goals for the proposed change. It is important for the manager to specify goals that the change is supposed to accomplish. The goals can be set to maintain or increase the market standing, to enter new markets, to restore employee morale, to reduce turnover, to settle a strike and to identify good investment opportunities. Diagnose relevant variables An important next step is diagnosing organizational variables that have brought about the need for change. Turnover, for example, may be caused by a variety of factors such as low pay, poor working conditions, poor supervision, better alternatives in the job market or employee job dissatisfaction etc. Thus, if turnover is the recognized stimulus for change, the manager must understand what has caused it in a particular situation in order to make the right changes. To carry out this diagnosis, the manager may discuss the situation with employees and other managers.

Select change intervention After the manager has developed an understanding of the problem and its causes then he must select a change intervention that will accomplish the intended goal. An intervention is a specific change induced in an organization with the intention of solving a particular problem or accomplishing a specific objective. For example, if turnover is caused by low pay, then a new reward system is required and if the cause is poor supervision then interpersonal skills and training for supervisors is required. Plan implementation of change The manager must then carefully plan the implementation of change. Planning the implementation of change involves consideration of the cost of the change, how the change will affect other areas of the organization and the degree to Which employees should participate in bringing about the change? Hastily implemented change can result in more harm than benefit. For example, if the change involves the use of new equipment, the manager should not make any changes that rely on the use of new equipment until it has arrived and been installed and workers know how to use it. Moreover, if change is thrust upon them too quickly, their resistance may stiffen. Implement change A systematically implemented change is more likely to proceed smoothly and to encounter fewer obstacles than is a change that is implemented too quickly and without adequate preparation. Evaluate implementation Finally, after the change has been implemented, the manager should verify that it has accomplished its intended goals. A change may fail to bring about the intended results. This may be due to inappropriate goals or inaccurate diagnosis of the situation or wrong selection of intervention. MODELS AND DYNAMICS OF PLANNED CHANGE Managers are criticized for emphasizing short-term, quick fix solutions to organizational problems. Quick-fix solutions do not really solve underlying problems and they have little staying power. Researchers and managers have thus tried to identify effective ways to manage the change process. The following models have been developed to effectively manage change: Lewin's Change Model Most theories of organizational change originated from the landmark work of social psychologist Kurt Lewin. Lewin developed a three-stage model of planned change, which explained how to initiate, manage and stabilize the change process. The three stages are unfreezing, changing and refreezing. Before reviewing each stage, it is important to highlight the assumptions on which, this model is based: 1. The change process involves learning something new, as well discontinuing current attitudes, behaviors and organizational practices. 2. Change will not occur unless there is motivation to change. This is often the most difficult part of the change process. 3. People are the hub of all organizational changes. Any change, whether in terms of structure, group process, reward systems or job design requires individuals to change. 4. Resistance to change is found even when the goals of change are highly desirable.

5. Effective change requires reinforcing new behaviors, attitudes and organizational practices. The following are the three stages of change: Unfreezing The focus of this stage is to make organization open to change. In doing so individuals are encouraged to replace old behaviors and attitudes with those desired by management. Managers also need to devise ways to reduce the barriers to change during this stage. Changing The focus of this stage is in providing employees with new information, new behavioral models, or new ways of looking at things. The purpose is to help employees learn new concepts to implement change. Role models, mentors, experts, benchmarking organization against world-class organizations and training are useful mechanisms to facilitate change. Re freezing The focus of this stage is stabilizing the change during refreezing by helping employees integrate the changed behavior or attitude into their normal way of doing things. This is accomplished by first giving employees the chance to exhibit the new behaviors or attitudes. Once exhibited, positive reinforcement is used to reinforce the desired change. Additional coaching and modeling are also used at this point to reinforce the stability of the change. Expanded Process Model Lewin's model is very simple and straightforward and virtually all models of organizational change use his approach. However, it does not deal with several important issues. Expanded process model is illustrated in the figure. This model looks at planned change from the perspective of top management. The model incorporates Lewin's concept as part of the implementation phase.

Top management according to this model perceives certain forces or trends that call for change and issues that are subjected to the organization's usual problem solving and decision-making processes. Usually, the top management defines its goals in terms

of what the organization or certain processes, or outputs will be like after the change. Alternatives for change are generated and evaluated and then an acceptable one is selected. Q.17 Write short note on: emerging Trends in organization Behaviour. Or Current applications and future trends in organization Behaviour. Or Challenges and opportunities for organization Behaviour. Ans. Due to globalization of economy, many organizations now operate in more than one country. These multinational operations add new dimensions to organizational behaviour. It is a step into different social, political and economic environments. Therefore, communication and control becomes difficult. The social, political and economic differences among countries" influence organizational behaviour. SOCIAL CONDITIONS In many countries due to poorly developed resources, there is shortage of managerial personnel, scientists and technicians. Hence the required skills must be temporarily imported from other countries, and training programs need to be developed to train the local workers. Trained locals become the nucleus for developing others, thereby spreading the training through masses. Another significant social condition in many countries is that the local culture is not familiar with advanced technology. A few countries are agriculture dominated and a few other manufacturing industries dominated. Naturally, the nature of their culture and work life will be different. POLITICAL CONDITIONS Political conditions that have a significant effect on organizational behaviour include instability of the government, restricting industries to a particular area and nationalistic drives such as self-sufficiency in latest technologies. When the government is unstable, organizations become cautious about further investments. This organizational instability leaves workers insecure and causes them to be passive and low in taking any initiatives. In spite of instability, a nationalistic drive is strong for locals to run their country and their organizations by themselves without any interference by foreign nationals. In some nations, organized labor is mostly an arm of the authoritarian state and in some other nations labor is somewhat independent. In some nations, State tends to be involved in collective bargaining and other practices that affect workers. For example, workers' participation in management are restricted by law while in other countries they are permitted. ECONOMIC CONDITIONS The most significant economic conditions in less developed nations are low per capita income and rapid inflation. Inflation makes the economic life of workers insecure when compared to developed countries. The different socio-economic and political conditions existing in countries influence the introduction of advanced technology and sophisticated organizational systems. A developed country can easily adopt advanced technology when compared to a less developed country. These limiting conditions cannot be changed rapidly because they are too well established and woven into the whole social fabric of a nation.

MANAGING AN INTERNATIONAL WORKFORCE Whenever an organization expands its operations to other countries, it tends to become multicultural and will then face the challenge of blending various cultures together. The managerial personnel entering another nation need to adjust their leadership styles, communication patterns and other practices to fit their host country. Their role is to provide fusion of cultures in which employees from both countries adjust to the new situation seeking a greater productivity for the benefit of both the organization and the people of the country in which it operates. Barriers to Cultural Adaptation Managers and other employees who come into a host country tend to exhibit different behaviors and somewhat, see situation around them from their own perspectives. They may fail to recognize the key differences between their own and other cultures. These people are called, 'parochial'. Another category of managers called 'individualistic' place greatest emphasis on their personal needs and welfare. They are more concerned about themselves than the host country. Another potential barrier to easy adaptation of another culture occurs, whenpeople are predisposed to believe that their homeland conditions are the-best. This predisposition is known as the 'self-reference criterion' or 'ethnocentrism'. This feeling interferes with understanding human: behaviour in other cultures and obtaining productivity from local employees. Cultural Distance To decide the amount of adaptation that may be required when personnel moves to another country, it is helpful to understand the cultural distance between the two countries. Cultural distance is the amount of distance between any two social systems. Whatever may be the amount of cultural distance, it does affect the responses of all individuals to business. The manager's job is to make the employees adapt to the other culture and integrate the interests of the various cultures involved. Cultural Shock When employees enter another nation they tend to suffer cultural shock, which is the insecurity and disorientation caused by encountering a different culture. They may not know how to act. may fear losing face and self-confidence or may become emotionally upset. Cultural shock is virtually universal. Some of the more frequent reasons for cultural shock are as follows: Different management philosophies New language Alternative food, dress, availability of goods Attitude towards work and productivity Separation from family, friends and colleagues Unique currency system Many expatriates report difficulty in adjusting to different human resource management philosophies, the language, the different currency and work attitudes in another culture. Overcoming Barriers to Cultural Adaptation Careful selection; of employees, who can withstand/adjust cultural shocks for international assignments* is important. Pre-departure training in geography, customs, culture and political environment in which the employee will be living will help for cultural adaptation. Incentives and guarantees for better position will motivate employees for cultural adaptation in the new country.

Employees who return to their home country after working in another nation for sometime tend to suffer cultural shock in their own homeland. After adjusting to the culture of another nation and enjoying its uniqueness, it is difficult for expatriates to re-adjust to the surroundings of their home country. Hence, organizations need repatriation policies and programs to help returning employees obtain suitable assignments and adjust to the 'new' environments. Cultural Contingencies Productive business practices from one country cannot be transferred directly to another country. This reflects the idea of cultural contingency that the most productive practices for a particular nation will depend heavily on the culture, social system, economic development and employee's values in the host country. Hence, the expatriate managers must learn to operate effectively in a new environment with certain amount of flexibility. Labor policy, personnel practices and production methods need to be adapted to a different labor force. Organization structures and communication patterns need to be suitable for local operations. MANAGEMENT'S INTEGRATING ROLE Once managers are in a host country, their attention needs to be directed toward integrating the technological approaches with the local cultures involved. Motivating and Leading Local Employees Same motivational tools may not suit the employees of all the nations. Hence, appropriate motivational techniques need to be implemented depending on the requirement of employees of that particular nation. Similarly, communication problems may also arise between the expatriate manager and the employees of the host country. Hence, managers need to make adjustments in their communication suited to< local cultures. If local culture is ignored, the resulting imbalance in the social system interferes with the productivity. Eventually, a cadre of employees with cross-cultural adaptability can be developed in organizations with large international operations. These employees are 'trans-cultural employees because they operate effectively in several cultures. They are low in ethnocentrism and adapt readily to different cultures without major cultural shock. They usually can communicate fluently in more than one language. Trans-cultural employees are especially needed in large, multinational firms that operate in a-variety of national cultures. For a firm to be truly multi-national in character, it should have ownership, operations, markets and managers truly diversified. Its leaders look to the world as an economic and social unit; but they recognize each local culture, respect its integrity, acknowledge its benefits and use its differences effectively in their organization.