OB - MBA - Nutshell
OB - MBA - Nutshell
ORGANISATIONAL BEHAVIOUR
MBA – SEMESTER II
viii. Disturbance Handler – When an organization or team hits an unexpected roadblock, it's the
manager who must take charge. You also need to help mediate disputes within it. (Conflict
Resolution/ Manage Emotion in the team)
ix. Resource Allocator – You'll also need to determine where organizational resources are best
applied. This involves allocating funding, as well as assigning staff and other organizational
resources. (Manage Budget/ Cut Costs/ Prioritize)
x. Negotiator – You may be needed to take part in, and direct, important negotiations within your
team, department, or organization. (Win-Win Negotiation)
5. Identify the major behavioral science disciplines that contribute to organizational behavior.
i. Psychology: attempts to explain human behavior in a particular situation and predicts actions
of individuals
ii. Social Psychology: blends concepts from psychology and sociology and that focuses on the
influence of people on one another
iii. Sociology: impact of culture on group behavior
iv. Anthropology: human behavior in various cultural and environmental frameworks
v. Political science - The study of the behaviour of individuals and groups within a political
environment
7. Explain the basic organizational behavior model/ what are the three levels of analysis in
organizational behavior model?
i. Individual Level: Attitude, Perception, Personality
ii. Group Level: Motivation, Leadership, Power, Politics
iii. Organizational Level: Organizational change, Organizational development, Organizational
Culture
Attitude is a manner of thinking, feeling, or behaving that reflects a state of mind or disposition.
While attitude involves mind's predisposition to certain ideas, values, people, systems, institutions;
behaviour relates to the actual expression of feelings, action or inaction orally or/and through body
language.
i. Affective: Emotion/feeling associated with the attitude. (Likes/dislikes) E.g.: I don’t like my
boss.
ii. Cognitive: Belief associated with the attitude based on experience, misunderstanding or
rumors. E.g.: My boss is unfair
iii. Behavioral: The way that an individual intends to behave towards an object or a situation.
E.g.: I am going to request a transfer or resign.
Job Satisfaction refers to an individual's overall feelings and attitudes towards their
job. It involves evaluating various aspects of the job, such as pay, working conditions,
co-workers, and opportunities for growth. A high level of job satisfaction indicates
that an individual has positive feelings about their work.
iv. Employee Engagement- Employee Engagement is the extent to which employees are
emotionally invested in and committed to their work and the organization. Engaged
employees are enthusiastic, motivated, and willing to go the extra mile to contribute to
organizational success. Employee engagement encompasses various aspects, including job
satisfaction, involvement, commitment, and a sense of purpose and fulfillment in their work.
12. Differentiate between emotions and moods. What are the sources of emotions and moods?
Sources of Emotions: Personality, Age, Gender, Time of the day, Day of Week, Weather, Stress, Social
Activities, Sleep, Exercise, Blood sugar levels
i. Selection: Emotions and moods can impact the selection process by influencing the
decision-making of both candidates and interviewers. For candidates, positive emotions and
moods can enhance their performance and presentation during interviews, increasing their
chances of being selected. Similarly, interviewers' moods and emotions can affect their
judgments and perceptions of candidates.
ii. Decision Making: Emotions and moods can influence decision-making processes. Positive
moods and emotions can lead to more creative and flexible decision-making, while negative
moods and emotions may hinder decision-making and result in biases or risk aversion.
Emotionally intelligent individuals can effectively manage their own and others' emotions to
make better decisions.
iii. Creativity: Emotions and moods have a significant impact on creativity. Positive
emotions can enhance creative thinking and problem-solving abilities, while negative
emotions may restrict creativity. Creating a positive and supportive work environment that
fosters positive moods can promote creativity and innovation among employees.
iv. Motivation: Emotions and moods can influence employee motivation. Positive emotions,
such as happiness and enthusiasm, can enhance motivation levels and increase productivity.
Conversely, negative emotions, such as frustration or anger, can lead to demotivation and
decreased performance. Understanding and managing emotions in the workplace can help in
maintaining a motivated workforce.
v. Leadership: Emotions and moods are critical for effective leadership. Leaders who can
understand and manage their own emotions and the emotions of their team members can build
positive relationships, enhance employee satisfaction, and motivate their teams. Emotionally
intelligent leaders can create an atmosphere of trust, open communication, and support, which
contributes to better organizational outcomes.
vi. Negotiation: Emotions and moods play a crucial role in negotiation processes.
Understanding and managing emotions can help negotiators assess the emotional state of the
other party and adjust their strategies accordingly. Emotional intelligence enables negotiators
to handle conflicts, build rapport, and find mutually beneficial solutions.
vii. Job Attitudes: Emotions and moods significantly influence job attitudes, such as job
satisfaction, involvement, and commitment. Positive emotions and moods contribute to
positive job attitudes, while negative emotions and moods can lead to dissatisfaction and
disengagement. Organizations can focus on creating a positive emotional climate to foster
desirable job attitudes.
viii. Safety and Injury at Work: Emotions and moods can impact safety behaviors and the
likelihood of workplace injuries. Positive moods and emotions contribute to increased
attention, focus, and adherence to safety protocols, reducing the likelihood of accidents.
Negative emotions, distractions, or stress can impair safety-related behaviors, leading to an
increased risk of workplace injuries.
ix. Negative Workplace Behavior: Emotions and moods can influence negative workplace
behaviors, such as aggression, bullying, or sabotage. Negative emotions, such as anger,
frustration, or resentment, can escalate conflicts and contribute to toxic work environments.
Managing emotions and promoting positive moods can help mitigate negative workplace
behavior and foster a harmonious workplace culture.
ii. Culture: Culture encompasses the shared beliefs, values, norms, customs, and practices of a
particular group or society. Culture has a profound influence on personality development as
individuals learn and internalize cultural norms and expectations. Cultural values and socialization
processes shape an individual's attitudes, beliefs, and behaviors, contributing to the formation of their
personality.
iii. Family: The family environment and dynamics significantly impact personality development.
Parents, siblings, and other family members serve as role models and sources of socialization.
Parenting styles, familial relationships, and the quality of attachment formed in childhood can shape
personality traits and behaviors. Family experiences and interactions contribute to the development of
self-esteem, values, and interpersonal skills.
iv. Social: Social factors, such as peer groups, friends, and social networks, influence personality.
Interactions with others, social norms, and social experiences contribute to the development of
personality traits and behaviors. Peer pressure, social support, and socialization within different social
contexts shape an individual's self-concept, identity, and social skills.
v. Situational: Situational factors refer to the immediate environment and circumstances that
influence behavior and expressions of personality. Different situations can elicit different responses
and behaviors from individuals. For example, a person may exhibit different personality traits and
behaviors at work compared to their behavior in a social setting. Situational factors, such as the
presence of authority figures, group dynamics, and environmental stimuli, can influence how
individuals express their personality.
i. Extraverted (E) Versus Introverted (I). Extraverted individuals are outgoing, sociable, and
assertive. Introverts are quiet and shy.
ii. Sensing (S) Versus Intuitive (N). Sensing types are practical, prefer routine and order, and
focus on details. Intuitives rely on unconscious processes and look at the “big picture.”
iii. Thinking (T) Versus Feeling (F). Thinking types use reason and logic to handle problems.
Feeling types rely on their personal values and emotions.
iv. Judging (J) Versus Perceiving (P). Judging types want control and prefer order and structure.
Perceiving types are flexible and spontaneous.
These classifications describe personality types by identifying one trait from each of the four pairs.
For example, Introverted/Intuitive/Thinking/Judging (INTJ) people are visionaries with original
minds and great drive. They are skeptical, critical, independent, determined, and often stubborn
17. Explain the Big Five Personality Model and discuss how it influence organizational behavior
criteria?
i. Extraversion: The extraversion dimension captures our comfort level with relationships.
Extraverts tend to be gregarious, assertive, and sociable.
ii. Agreeableness. The agreeableness dimension refers to an individual’s propensity to accept
others. Highly agreeable people are cooperative, warm, and trusting.
iii. Conscientiousness. The conscientiousness dimension is a measure of reliability. A highly
conscientious person is responsible, organized, dependable, and persistent.
iv. Emotional stability. The emotional stability dimension—often labelled by its converse,
neuroticism—taps a person’s ability to withstand stress. People with positive emotional
stability tend to be calm, self-confident, and secure
v. Openness to experience. The openness to experience dimension addresses range of interests
and fascination with novelty. Open people are creative, curious, and artistically sensitive.
Terminal Values – goals that we work towards and view as most desirable. They are goals that
one would like to achieve during their lifetime. E.g. A comfortable life.
Instrumental Values – deals with views of acceptable modes of conduct like being ethical,
ambitious. These are preferable modes of behavior, or means of achieving the terminal values.
E.g Responsible
Generational values:
International values: Values vary across cultures, i.e. people’s values in one nation tend to differ from
those in another; however, there is substantial variability in values within a culture.
Countries across the world differ on the 5 values based on the Hofstede Framework:
i. Power distance: Power distance describes the degree to which people in a country accept that
power in institutions and organizations is distributed unequally. A high rating on power
distance means that large inequalities of power and wealth exist and are tolerated in the
culture
ii. Individualism versus collectivism: Individualism is the degree to which people prefer to act as
individuals rather than as members of groups and believe in individual rights above all else.
Collectivism emphasizes a tight social framework in which people expect others in groups of
which they are a part to look after them and protect them.
iii. Masculinity versus femininity: masculinity is the degree to which the culture favours
stereotypically masculine values such as achievement, power, and control, as opposed to
stereotypically feminine values such as social harmony
iv. Uncertainty avoidance: In cultures that score high on uncertainty avoidance, people have an
increased level of anxiety about uncertainty and ambiguity and use laws and controls to
reduce uncertainty. People in cultures low on uncertainty avoidance are more accepting of
ambiguity, are less rule-oriented, take more risks, and more readily accept change.
v. Long-term versus short-term orientation: People in a culture with long-term orientation look
to the future and value thrift, persistence, and tradition. In a short-term orientation, people
value the here and now; they accept change more readily and don’t see commitments as
impediments to change
20. What are the implication of major job attitudes for managers?
i. Recognize that attitudes have cognitive, affective, and behavioural components. Managers
looking to foster attitudinal change should focus on behaviours but also address cognition and
affect.
ii. Pay attention to your employees’ job satisfaction levels as determinants of their performance,
organizational citizenship, turnover, absenteeism, and withdrawal behaviours.
iii. Measure employee job attitudes objectively and at regular intervals in order to determine how
employees are reacting to their work.
iv. Consider the fact that high pay alone is unlikely to create a satisfying work environment. Pay
attention to social, justice, and equity concerns to maximize workers’ satisfaction.
22. What attribution theory? Discuss the use of attribution theory for making judgment about
behavior.
An attempt to explain the ways we judge people differently depending on the meaning we attribute to
the behaviour, such as determining whether an individual’s behavior is internally or externally caused.
Internally caused behaviours are those an observer believes to be under the personal control of another
individual. Externally caused behaviour is what we imagine the situation forced the individual to do.
That determination depends largely on three factors:
(a) Distinctiveness: whether an individual displays different behaviour in different situations
(b) Consensus: if everyone, who faces a similar situation responds in the same way
(c) Consistency: does the person respond the same way over time
23. Discuss the common shortcuts in judging others. Throw light upon the specific applications of
shortcuts in organizations.
Common shortcuts in judging others
i. Selective Perception: When people tend to see only a few qualities and judge the person
completely
ii. Halo Effect: Judging an individual positively only on one particular trait/characteristics
iii. Horn Effect: Judging an individual negatively only on one particular trait/characteristics
iv. Contrast Effects: Most recent information dominates perception
v. Golem Effects: If an individual’s belief is negative
vi. Stereotyping: When people believe that all members of a specific group will have common
characteristics.
Applications of shortcuts in organizations
i. Employment interview: Interviewers make perceptual judgements that are often inaccurate
and draw early impressions.
ii. Performance Expectations: Individual’s behavior is determined by others expectation. People
holding a high expectation of another tend to improve that individual performance.
iii. Performance Evaluations: Many parameters of the performance on the job is evaluation
subjectively rather objectively.
24. Explain the steps in rational decision-making model. How individual differences and
organizational constraints affect decision-making?
i. Define the problem.
ii. Identify the decision criteria.
iii. Allocate weights to the criteria.
iv. Develop the alternatives.
v. Evaluate the alternatives.
vi. Select the best alternative
Influence on decision-making:
Individual Differences:
i. Personality
ii. Gender
iii. Mental ability
iv. Cultural Differences
Organizational constraints
i. Performance Evaluation Systems: Managers are influenced by the criteria on which they are
evaluated.
ii. Reward Systems: The organization’s reward system influences decision makers by suggesting
which choices have better personal payoffs
iii. Formal Regulations: Freedom of choice gets restricted by policies
iv. System-imposed Time Constraints: Decisions made within a deadline might get comprised
due to time constraints
v. Historical precedents: Decisions made in the past are like ghosts and constrain current
choices.
25. What are the three key elements of motivation? Discuss the early theories of motivation i.e.
(Hierarchy of needs theory/ Two factors Theory/ Mc Clelland’s Theory of Needs)
Motivation as the processes that account for an individual’s intensity, direction, and persistence of
effort toward attaining a goal.
i. Intensity describes how hard a person tries
ii. Direction: High intensity is unlikely to lead to favourable job-performance outcomes unless
the effort is channelled in a direction that benefits the organization.
iii. Persistence: This measures how long a person can maintain effort.
Abraham Maslow’s hierarchy of needs
i. Physiological. Related to hunger, thirst, shelter, sex, and other bodily needs.
ii. Safety. Security and protection from physical and emotional harm.
iii. Social: Affection, belongingness, acceptance, and friendship.
iv. Esteem. Internal factors such as self-respect, autonomy, and achievement, and external factors
such as status, recognition, and attention.
v. Self-actualization. Drive to become what we are capable of becoming; includes growth,
achieving our potential, and self-fulfilment
Douglas McGregor’s Theory X and Theory Y
i. Theory X: Employees work as little as possible, lack ambition, dislike responsibility, resistant
to change. Therefore, they need to be controlled, pressurized & bribed. (Negative Motivation)
ii. Theory Y: Employees are willing to work; they are creative & self-directed. Hence, the
management must arrange conditions & methods of operation so that employees can achieve
their own goals best by directing their own efforts towards org objectives. (Positive
Motivation)
Herzberg’s Two-factor theory
i. Hygiene Factors CANNOT MOTIVATE but ELIMINATE DISSATISFACTION. Hygiene
Factors: Salary, Company Policies, Working Environment and Job Security
ii. If motivational factors are not there, the effect is neutral, but if present then it will result into
motivation. Motivational Factors: Job Enrichment, Career Growth and Recognition
Mc Clelland’s Theory of Needs
i. Need for Achievement: Strive to Succeed
ii. Need for Power: Seek Influence, Attention & recognition
iii. Need for Affiliation: Relationship, Love & Affection and Group Membership
26. Describe how job characteristics model motivates by changing the work environment.
The job characteristics model (JCM) describes jobs by five core dimensions
i. Skill variety is the degree to which a job requires different activities using specialized skills
and talents
ii. Task identity is the degree to which a job requires completion of a whole and identifiable
piece of work.
iii. Task significance is the degree to which a job is perceived to affect the lives or work of other
people.
iv. Autonomy is the degree to which a job provides the worker freedom, independence, and
discretion in scheduling work and determining the procedures for carrying it out.
v. Feedback is the degree to which carrying out work activities generates direct and clear
information about your own performance.
The JCM proposes that individuals obtain internal rewards when they learn (knowledge of results) that
they personally have performed well (experienced responsibility) on a task they care about (experienced
meaningfulness).2 The more these three psychological states are present, the greater will be employees’
motivation, performance, and satisfaction, and the lower their absenteeism and likelihood of leaving.
Individuals with a high growth need are likely to experience the critical psychological states when their
jobs are enriched—and respond to them positively.
27. Compare the main ways that jobs can be re-designed.
i. Job rotation: the periodic shifting of an employee from one task to another with similar skill
requirements at the same organizational level
ii. Job enrichment: It is a method of motivating employees where a job is designed to have
interesting and challenging tasks, which can require more skill and can increase pay. The
purpose of job enrichment is to expand the tasks that each employee performs, allow them to
perform tasks in different ways, and ultimately give them more control over their work. This
makes work more stimulating and helps to motivate employees to do their best work.
iii. Relational Job Design: Managers design the work in such a way so that employees are
motivated to promote the well-being of the organization’s beneficiaries (customers, clients,
patients, and employees).
iv. Flexitime: Claimed benefits include reduced absenteeism, increased productivity, reduced
overtime expenses, reduced hostility toward management, reduced traffic congestion around
work sites on commute paths, elimination of tardiness, and increased autonomy and
responsibility for employees—any of which may increase employee job satisfaction
v. Job Sharing: Job sharing allows two or more individuals to split a traditional 40-hour-a-week
job. Job sharing allows an organization to draw on the talents of more than one individual for
a given job. It opens the opportunity to acquire skilled workers—for instance, parents with
young children and retirees—who might not be available on a full-time basis. From the
employee’s perspective, job sharing can increase motivation and satisfaction.
vi. Telecommuting: Telecommuting has several potential benefits: a larger labour pool from
which to select, higher productivity, improved morale, and reduced office-space costs. A
positive relationship exists between telecommuting and supervisor performance ratings.
29. Discuss the group properties. Explain the group decision-making techniques.
Group Properties:
i. Roles: parts played by group members
ii. Norms: rules and expectations (acceptable standards of behavior shared by their members)
iii. Status: prestige of group membership
iv. Group Size: size of a group affect the group’s overall behavior (Social Loafing: the tendency
for individuals to give less effort when working collectively than alone.)
v. Cohesiveness: sense of belonging
vi. Diversity: the degree to which members of the group are similar to, or different from, one
another.
Group decision-making techniques
i. Interacting groups: Typical groups where members interact with each other face to face.
ii. Brainstorming: A idea generation process that specifically encourages alternatives.
iii. Nominal Group techniques: small groups of individuals systematically present & discuss their
ideas before privately voting their preferred solutions.
iv. Electronic Meeting
v. Stepladder Technique: Adding new members to a group one at a time and requiring each to
present his/her ideas independently to a group that already has discussed the problem at hand.
31. Write a short note on a) punctuated equilibrium model b) groupthink c) group shift
a) Punctuated equilibrium model: It is an alternative model for temporary groups with deadlines.
Beginning of Group Discussions (First half): Groups makes plan but accomplishes little.
Half to deadline: Group makes changes
End (Second half): Group makes the final changes & reaches the deadline
b) Groupthink is a psychological phenomenon that occurs within a group of people in which the
desire for harmony or conventionality in the group results in an irrational or dysfunctional
decision-making outcome. Members of a group make decisions based on the pressure that they
get from the group.
c) Group shift refers to a condition where the position of an individual in the group changes to adopt
an extreme position due to the influence of the group. When people are in groups, they make
decisions about risk differently from when they are alone.
Behavioral theory of leadership: It is based on what leaders do & not on what qualities/traits leaders
have. For e.g. Blake & Mouton’s managerial grid theory where balancing the task (concern for
production) & people (concern for employees) orientation with a 9-grid model exists.
34. Write short notes on the contingency theories of leadership i.e. a) Fiedler Model b) Situational
Leadership Theory c) Path Goal Theory
Telling or Directing
Coaching
Supporting
Delegating
35. Write short notes on the contemporary theories of leadership i.e. a) LMX Theory b)
Charismatic Leadership c) Transactional Leadership d) Transformational leadership e)
Authentic leadership
Charismatic leadership (CL): It is a type of leadership that combines charm, interpersonal connection, and
persuasiveness to motivate others.
i. This is done by tapping into their team members’ emotions, creating a sense of trust, passion,
and purpose greater than themselves.
ii. CLs influence others with their personality and charm.
iii. CLs encourage others using their strong communication skills and listening skills
E.g., Mahatma Gandhi, Barack Obama
Key Characteristics of a Charismatic Leader
i. Vision and articulation. Has a vision—expressed as an 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.
ii. Personal risk. Willing to take on high personal risk, incur high costs, and engage in
selfsacrifice to achieve the vision.
iii. Sensitivity to follower needs. Perceptive of others’ abilities and responsive to their needs and
feelings.
iv. Unconventional behaviour. Engages in behaviours that are perceived as novel and counter to
norms
Transactional Leadership: Transactional leadership is primarily based on processes and control, and
requires a strict management structure
Focus:
Leadership: Leadership focuses on inspiring and guiding others, setting a vision, and mobilizing
people towards shared objectives. It emphasizes collaboration, communication, empathy, and
fostering positive relationships. Leadership is often associated with long-term goals, vision, and
organizational culture.
Power: Power focuses on the ability to enforce compliance or achieve desired outcomes through
authority, control, or manipulation. It can be used for both positive and negative purposes. Power
is often associated with short-term goals, individual interests, and hierarchical structures.
Influence:
Leadership: Leadership is primarily based on influence, where leaders influence others through
their personal qualities, communication skills, and ability to inspire and motivate. Effective
leaders rely on persuasion, trust-building, and empowerment to encourage followers to willingly
contribute to the group's goals.
Power: Power can be exerted through various means, including rewards, punishments, coercion,
or control over resources. It often involves directing or manipulating others' behaviors without
necessarily gaining their genuine support or commitment.
37. Explain the bases of formal and informal power. Which bases of power is most effective?
Formal Power: Formal power is based on an individual’s position in an organization. It can come from the
ability to coerce, the ability to reward, or formal authority (also termed legitimate power)
i. Coercive Power: Ability to influence others behavior by punishing their undesirable behavior
ii. Reward Power: Ability to reward others
iii. Legitimate Power: Power by position & authority
iv. Information Power: Access to and/control of information
Informal power: Informal or personal power, which comes from an individual’s unique characteristics.
i. Expert Power: The ability to control another person’s behavior through the possession of
knowledge, experience or judgment that the other person does not have.
ii. Referent Power: By being respected & admired
Most important Power:
i. Informal or personal sources of power are most effective.
ii. Both expert and referent power are positively related to employees’ satisfaction with supervision,
their organizational commitment, and their performance, whereas reward and legitimate power
seem to be unrelated to these outcomes.
iii. One source of formal power—coercive power—is negatively related to employee satisfaction and
commitment
38. Identify the power tactics and their contingencies i.e. using power tactics.
There are nine distinct power tactics i.e. by these tactics; power is established at workplace.
i. Legitimacy. Relying on your authority position, or saying that a request accords with
organizational policies or rules.
ii. Rational persuasion. Presenting logical arguments and factual evidence to demonstrate that a
request is reasonable.
iii. Inspirational appeals. Developing emotional commitment by appealing to a target’s values, needs,
hopes, and aspirations.
iv. Consultation. Increasing support by involving the target in deciding how you will accomplish
your plan.
v. Exchange. Rewarding the target with benefits or favours in exchange for following a request.
vi. Personal appeals. Asking for compliance based on friendship or loyalty.
vii. Ingratiation. Using flattery, praise, or friendly behaviour prior to making a request.
viii. Pressure. Using warnings, repeated demands, and threats.
ix. Coalitions. Enlisting the aid or support of others to persuade the target to agree
39. Define organizational politics. Identify the causes and consequences of political behavior. OR
Identify the factors that influence political behavior and How do people respond to
organizational politics?
Politics: It is the way that people gain & use power in the organizations.
Organizational politics:
i. Attempts to influence others using discretionary behaviors to promote personal objectives
ii. Discretionary behaviors neither explicitly prescribed nor prohibited
iii. Politics may be good or bad for the organization
v. Team Structure: An organizational structure that replaces departments with empowered teams,
and that eliminates barriers between customers and suppliers.
vi. Circular Structure: An organisational structure in which executives are at the centre, spreading
their vision outward in rings grouped by function (managers, then specialists, then workers).
43. What is organizational culture? Describe the common characteristics of organizational culture.
Organizational culture: It is the philosophy, ideologies, values, beliefs, attitude & norms that bind an
organization together & are shared by employees.
Seven primary characteristics that captures the essence of an organization’s culture:
i. Innovation and risk taking. The degree to which employees are encouraged to be innovative and
take risks.
ii. Attention to detail. The degree to which employees are expected to exhibit precision, analysis,
and attention to detail.
iii. Outcome orientation. The degree to which management focuses on results or outcomes rather than
on the techniques and processes used to achieve them.
iv. People orientation. The degree to which management decisions take into consideration the effect
of outcomes on people within the organization.
v. Team orientation. The degree to which work activities are organized around teams rather than
individuals.
vi. Aggressiveness. The degree to which people are aggressive and competitive rather than
easygoing.
vii. Stability. The degree to which organizational activities emphasize maintaining the status quo in
contrast to growth.
For instance, managers at Nike feel that stories told about the company's past help shape the
future. Whenever possible, corporate "storytellers" (senior executives) explain the company's
heritage and tell stories that celebrate people getting things done.
ii. Rituals: Corporate rituals are repetitive sequences of activities that express and reinforce the
values of the organization, what goals are most important, and which people are important.
Once a year, the "Best failed idea" award is presented to the "best" failed ideas and projects - with
all the seriousness to learn from them.
iii. Material Symbols: Material symbols convey to employees who is important, the degree of
equality desired by top management, and the kinds of behavior that are expected and appropriate.
Examples of material symbols include the layout of an organization's facilities, how employees
dress, the types of automobiles provided to top executives etc.
iv. Language: Many organizations and units within organizations use language as a way to identify
and unite members of a culture. By learning this language, members attest to their acceptance of
the culture and their willingness to help preserve it.
For instance, at Vindya E informedia ( A BPO managed by persons with disabilities in
Bangalore), the official language practiced is sign language.
v. Organizational Heroes: Top management and prominent leaders of the organization become the
role models and a personification of an organization’s culture. Their behavior and example
become a reflection of the organization’s philosophy and helps to mould the behavior of
organizational members.
45. Identify the factors that create and sustain an organization’s culture.
Creating an organizational culture
i. Organizational Structure
ii. Organization policies
iii. Organizational Ethics
iv. Characteristics of leaders
v. Characteristics of employees
Sustaining/ maintaining organizational culture
i. Consistent rewards
ii. Maintaining a stable work force
iii. Selecting & socializing employees
iv. Actions of leaders & founders
46. Describe various ways to develop ethical culture and positive culture.
What can managers do to create a more ethical culture? They can adhere to the following principles:
i. Be a visible role model. Employees will look to the actions of top management as a benchmark
for appropriate behaviour. Send a positive message.
ii. Communicate ethical expectations. Minimize ethical ambiguities by sharing an organizational
code of ethics that states the organization’s primary values and ethical rules employees must
follow.
iii. Provide ethical training. Set up seminars, workshops, and training programs to reinforce the
organization’s standards of conduct, clarify what practices are permissible (or impermissible), and
address potential ethical dilemmas.
iv. Visibly reward ethical acts and punish unethical ones. Appraise managers on how their decisions
measure up against the organization’s code of ethics. Review the means as well as the ends.
Visibly reward those who act ethically and conspicuously punish those who don’t.
v. Provide protective mechanisms. Provide formal mechanisms so employees can discuss ethical
dilemmas and report unethical behaviour without fear of reprimand. These might include ethical
counsellors or ethical officers.
A positive organizational culture emphasizes building on employee strengths, rewards more than it
punishes, and emphasizes individual vitality and growth.
47. Compare the functional and dysfunctional effects of organizational culture on people and the
organization.
i. Culture Creates Climate: The shared perceptions that employee have about their organization and
work environment, particularly about the policies and practices is called organizational climate.
ii. Ethical Dimension of culture: The shared concept of right or wrong behaviour in the workplace
that reflects the true values of the organization and shapes the ethical decision making of it’s
employees.
iii. Culture and sustainability: To create a truly sustainable business, an organization must develop a
long-term culture and put its value into same.
iv. Culture and innovation: The most innovative organizations are often characterized by their open,
unconventional, collaborative vision driven, accelerating culture.
v. Culture as an asset: Organizational culture can foster a positive environment with organizational
commitment that puts value in action. Culture can also contribute.
Culture as a liability:
i. Barriers to change: When shared values don’t agree with those that leads to organizational
effectiveness, then culture become a liability.
ii. Barriers to diversity: Strong culture will support bias and become insensitive towards diversity.
iii. Toxicity: Dominant culture tend to reduce customer service performance, avoidance culture tend
to be less creative.
iv. Barriers to Mergers & Acquisitions: Cultural compatibility is essential in M&A process. When
both the cultures of the organizations do not mesh well, it becomes a liability.
i. Education and Communication: This tactic assumes that the source of resistance lies in
misinformation or poor communication.
ii. Participation: Prior to making a change, those opposed can be brought into the decision
process.
iii. Facilitation and Support: The provision of various efforts to facilitate adjustment.
iv. Negotiation: Exchange something of value for a lessening of resistance.
v. Manipulation and Cooperation: Twisting and distorting facts to make them appear more
attractive.
vi. Coercion: The application of direct threats or force upon resisters.
50. Discuss the approaches to managing organizational change (Lewin’s three step model/ Kotter’s
eight-step plan/ Action research/ Organizational development)
Organizational development:
i. OD is concerned with a) Diagnosis of organizational health & performance & b) Ability of the
organization to adapt to change.
ii. It aims at organizational effectiveness. An organization is said to be effective when it achieve its
goals
iii. OD is System-wide application / org-wide, a Planned development, Improvement and
reinforcement of Strategies, Structures or Processes that lead to organization effectiveness.
Steps in OD
Step 1: Diagnosis of the problem
Step 2: Planning the strategy for change
Step 3: Use of change agents
Step 4: Implementing the change
Step 5: Evaluation
vii. Consolidate improvements, reassess changes, and make necessary adjustments in the new
programs. As the changes roll out, managers evaluate and assess, changing the plan as
needed.
viii. Reinforce the changes by demonstrating the relationship between new behaviours and
organizational success. Managers would then highlight exactly how the new feature or the
new ad campaign or loyalty program contributed to market share and profitability.