Course: Organizational Behaviour

MBA (Outcome Based – CBCS)

MODEL QUESTION BANK

Semester – I

1T4 – Organizational Behaviour

Module 1
Organisation Design: Understanding organizations-Basics of an organizational design- Organization and
stakeholders-Organizations and environmental influences-Organizational strategy-Organizational design -
Alternative structures-Management process - Authority and Responsibility Relationship; organizational control
mechanisms; Organizational decision making.

CO1 - Students will be able to explain the concept of Organisation Design and determine the factors that affect
Organisation Design.

Q.1 Explain the Concept of OD. Determine the various factors that affect the structure of a
management institute and suggest a suitable design for the same.

Model Answer:

Organization design” involves the creation of roles, processes and structures to ensure that the
organization’s goals can be realized. Organizational design is a step-by-step methodology which
identifies dysfunctional aspects of work flow, procedures, structures and systems, realigns them to fit
current business realities/goals

Factors that will affect that will affect the structure of a management institute:

1. Working together and coordination among functional and product specialist

In a management institute the functional specialist has to work across various products and
hence the structure of a management institute should be such which allows pooling and sharing
of specialized resources across the products. For eg: An accounting professor is a specialized
resource which can be used for teaching across various programs (products) like
Undergraduate, post graduate, PhD etc.
2. Interdependent resources and activities:
In a management institute there are many interdependent activities for which the resources are
also interdependent and hence structure of a management institute should be such which
allows facilitating coordination of interdependent activities. For eg: A professor of accounting
who is teaching an undergraduate course may report to the director/ program coordinator of
undergraduate program as well as to the HOD of the accounting department.
3. Efficient allocation of specialist: The structure of a management institute should be such that
allows efficient allocation of specialist. When individuals with highly specialized skills are lodged
in functional department or product group, their talents are monopolized and underused.

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Organization design structure suitable for a management instate is The Matrix structure as it
accommodates all the above mentioned factors that affect the structure of a a management
institute

Q2. Explain the key elements of organizational structure? ABC Company wants to open a new
departmental store in a rural area, being a consultant which type of structure (organizational design)
you will suggest to the company for a departmental store and why ?

Model Answer

The key element of organizational structure-

• Work specialization
• Departmentalization
• Chain of command
• Span of control
• Centralization and decentralization

Suitable structure for the departmental store- simple structure

Characteristics of simple structure

Contingency variable are strategy, people, technology, task, employee skills, formalization, control etc.
are the various factors which affect organizational design responsible for organizational design

Store
Manager

Sales Sales Sales Sales Accountant

Cashier Storekeeper
(Executive)
Executive Executive Executive Executive

Effect of these factors on organizational design and how they will support simple structure:

Q3. What do you see as a major strength of an organization with Divisional Structure? Is divisional
structure suitable for companies manufacturing consumer durable?
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Model Answer

Strengths of a Divisional Structure Organization

Nimbleness: Because the separate divisions operate with a great deal of autonomy, a divisional
structure creates a nimbler operation. Divisional management typically has the authority to make
decisions quickly without the need for outside intervention. In an environment where rapid change is
the norm, nimbleness allows the division to effectively keep up with the competition. As a result, the
divisional structure is often most effective in an intensely competitive business environment.

Sense of Purpose: The structural nature of a division can foster a work environment where workers
have an enhanced sense of purpose and a greater spirit of cooperation. Each division within the
organization generally is responsible for producing an end product or service. While each department
within the division fulfils a separate role, such as marketing, research and development or
manufacturing, each has a stake in the end result. In a divisional structure, the end result is the most
efficient production of the product or service possible.

Specialization: A divisional structure allows for a high degree of specialization. Because each division is
typically responsible for producing one particular product or service, it develops expertise in that area.
This can lead to increased efficiency over time as workers continue to develop a set of highly
specialized skills that lead to enhanced job performance. Processes like production and manufacturing
also become more efficient as streamlining techniques develop with experience, helping to keep costs
to a minimum.

Worker Development: The enhanced cooperation in a divisional structure can provide long-term
benefits for the employees. According to the Practical Management website, workers within the
division often have more opportunities to develop skills outside of their own areas of expertise, as they
may be more readily exposed to the different departments. Developing additional skills makes the
workers a greater asset to the company and makes them more viable candidates when advancement
opportunities arise.

Consumer durable companies-The consumer goods sector is a category of stocks and companies that
relate to items purchased by individuals rather than by manufacturers and industries. This sector
includes companies involved with food production, packaged goods, clothing, beverages, automobiles,
and electronics.

Divisional Structure has the following advantages because of which consumer durable companies
should have divisional structure.

Accountability: The divisional organizational structure allows each division of a firm to be accounted
for in isolation. It can easily be seen which department is successful in making profits while which are
bearing losses. Loss bearing divisions can be shut down completely while more investments can be
made in profit earning divisions. This analysis is not possible when a firm is working in any other
structures such as functional structures.

Team working The divisional organizational structure allows people in a single division to interact with
each other. When all of them are working towards a single goal, the success of their division, the
motivation is higher than ever. The communication is much efficient, and everyone knows what the
other person needs from them. For example, a finance department would know how much money is
needed for a division’s research and development.

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Responsiveness to external changes: When in a divisional organizational structure, a division focuses
just on its own product, service or region. This helps them focus better on external factors that can
affect their operations. Divisions become quicker in responding to external changes such as weather
change, natural disasters, financial crisis, trade union matters and so on.

Organizational culture: Organizational culture is the values and the practices that persist in an
organization. The divisional structure allows this type of culture to persist in a division. The
organizational culture can help people interact better with each other. It also helps create bonds
between them. A better understanding of each other helps in achieving the pre-set goals and targets,
no matter how difficult they are.

Leadership: In the divisional structure, each division has its own leader. The leader sets goals along
with his/her employees and works alongside them to achieve those goals. The direct control from the
top leadership of the firm is no longer a necessity. The upper leadership can indulge in strategic
decisions. Divisional leaders also become experts in their areas of work and work very efficiently.

Q4. Explain the concept of Organizational Design and also determine the best organizational design
for Public Sector Bank.

Model Answer

Definition: Organizational design is the process by which managers select and manage elements of
structure so that an organization can control the activities necessary to achieve its goals. Organizational
structure is the means the organization uses to achieve its goals.

Common Organizational Designs:

1. The Simple Structure
2. The Bureaucracy
3. The Matrix Structure

Best organizational design for Public Sector Bank is Bureaucracy

Explanation: The primary strength of the Bureaucracy lies in its ability to perform standardized
activities in a highly efficient manner putting like specialties of together in functional departments
results in Economics of scale, minimum duplication of personnel and equipment and employees who
have the opportunity to talk “the same language” among their peers.

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Q5. Explain the concept of organisational design. Determine a suitable organisational design for a
manufacturing company.
Model Answer

Concept Of Organisation Design:

Organizational Design is the process of designing, defining or adapting the organizational structure. It
usually tries to answer the following questions:
• Who is responsible for each activity?
• Who has the authority?
• What are the limits of this authority?
• Who reports to whom?
• Who has control over which resources?
• How information flows in the organization?
Organisational Design For A Manufacturing Company: Line & Staff Organisation

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Q6. Determine a type of Organisation structure which will be more suitable for Start-ups. Justify your
answer by mentioning its merits

Model Answer

An organization's structure is one of the most impactful choices that a startup can make. Structure
defines how power is held and exercised within a company.

Organizational structure is the relationship between different roles in an organization. The structure
shows how the roles are linked and what level of responsibility each role involves. Moreover, it shows
the hierarchy of roles within the organization. Developing a clear idea of your start-up structure helps
you stay organized in the start-up phase and beyond.

Determining Structure

Start-ups often have an extremely simple structure in the start-up phase and sometimes long after.
Start-ups initially have few employees and they don't need to deal with the complex structural
decisions that large corporations handle.
Organizational structure can be defined as the method in which information flows in an organization.
Not only does it help in the flow of information it also helps in overall organization of a company. It also
determines the nature of leadership that a company flows. An organization chooses among hierarchical
or horizontal organizational structure for better management

A horizontal organizational structure is the one having no or fewer levels of management. In a

horizontal organizational structure, the top-level managers can give direct orders to the lower levels.
This structure is also known as a flat organizational structure.

The differences between a horizontal structure and a vertical organization are considerable, but
when it comes to a start-up, the horizontal/ flat structure is given more preference for the following
merits:

• Transparent and clear communication

• More autonomy to employees
• encourage progress, ideas and openness
• Greater job satisfaction
• Quick decision making
• Less bureaucracy

Q7. What are some of the common organizational design? Suggest a suitable design for a
cooperative Bank with its merits

Model Answer

Common Organizational designs:

• The Simple Structure
• The Bureaucracy
• The Matrix structure

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The most suitable design for a cooperative bank would be the bureaucracy design because
Standardization is the key concept that underlines all the bureaucracies. The bureaucracy design is
characterized by highly routine operating tasks achieved through specialization, much formalised rules
and regulations, tasks that are grouped into functional departments, centralized authority, and narrow
span of control, and decision making that follows the chain of command.

Merits of a bureaucracy design

• The primary strength of bureaucracy lies in its ability to perform standardized activities in a
highly efficient manner.
• Putting like specialties together in functional departments results in economies of scale,
minimum duplication of personnel and equipment.
• Bureaucracies can work nicely by less talented, and hence less costly- middle and lowered
managers.
• Standardized operations, coupled with high formalization allow decision making to be
centralized.
• There is little need for innovative and experienced decision makers below the level of senior
executives.

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Q8. Identify & explain the organisational design for a firm operating in the business of daily
newspaper printing and also determine the factors affecting its organisational design.

Model Answer
Organisation Design: Functional Organisation

Factors Affecting Organisational Design:

• Strategy
• Organisation Size
• Technology
• Environment

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Module 2

Organisational Behaviour: Introduction, Foundations of individual behavior-Ability, Attitudes, Job

Satisfaction, Personality, Values, Perception
CO2 - Students will be able to identify the components of Individual Behaviour and apply the concept
of Learning, Perception, Attitudes and values.

Q1. Human behavior is more complex than what people believe”. Do you agree with this statement?
What are the factors that add complexity in human behavior?

Model Answer

Human Behaviour is caused by certain reasons. Behaviour is the result of interaction between
individual characteristics and the characteristics of the environment in which the behaviour occurs.
Hence Human behavior is more complex than what people believe. Following are the factors that add
complexity in human behavior

Q2. If you want to hire store managers in your retail business department which component of
individual behavior will be very important for hiring? Why?

Model Answer

• Individual characteristics like- Intellectual ability, physical ability, age, gender, social groups,
learning ability, attitude, and values.
• Reasons for identifying these characteristics- e.g. Intellectual ability- Managers has to take many
decision, have to do planning, organizing, controlling so he/she should be intellectual enough to
do these functions.

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Q3. Does the employee continues to work better or shows resistance towards work if he/she does
not get acknowledged for the task they perform. In this situation why management of employee’s
emotions is important for a manager?

Model Answer

Many organizations minimize the link between their managers’ human skills and overall employee
performance. But over and over, the research confirms that: A manager is generally the most
important factor in bringing out a worker’s best performance. Good managers don't manage projects,
they manage people, and they get good performances out of people.

Emotions are outcome of individual behaviour and personality traits.

The way an individual addresses a situation single-handedly or say in a group is influenced by many
factors. The key factors influencing an individual’s attitude in personal as well as social life are −

• Values
• Abilities
• Gender
• Race and culture
• Attribution
• Perception
• Attitude
• Learning

Managers can’t help but shape the emotional life of an organization, given their starring roles. And
whatever is happening in the manager’s emotional life spreads virally.

Q4. Outline the foundation of individual behavior and explain the importance in understanding,
predicting & influencing individual behavior in organization.

Model Answer

Determinants of Individual Behaviour:

I. Biographical Characteristics:
1. Age
2. Sex
3. Marital Status
4. Number of Dependents
5. Ability

II. Personality
Factors Influencing Individual Behaviour
1. Personality
2. Socio-cultural Factors
3. Motivation
4. Organizational Factors
5. Ability
6. Perception

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Q5. Assume that you are scheduled to join your first job as a manager in an MNC. Identify the
components of your behaviour that would affect your performance in the organisation. Also
explain what components of your attitude will make you develop a negative attitude towards your
boss?

Model Answer

Components Of Behaviour That Would Affect Performance In The Organisation:

• Ability
• Intellectual Abilities
• Physical Abilities
• Learning
• Perception
• Personality
• Values
• Attitude
Components Of The Attitude That Will Develop a Negative Attitude Towards the Boss:

Q6. Identify what biographical characteristics of an employee working in food delivery service
differs him from the rest of the employees working in the same organisation. Also explain what
factors will influence the perception of a customer about this delivery man?

Model Answer

Biographical Characteristics:

• Age
• Gender
• Race
• Social Group
• Tenure of work
• Religion

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Factors Influencing Perception:

Q7. Identify the various Biographical characteristics and Explain their impact on Job Satisfaction.

Model Answer

Biographical Characteristics like Age, Gender, Tenure, and Marital Status have an important impact on
Job satisfaction among employees in organization.
1. Age: Job satisfaction increases with age for professionals.
2. Gender: No significant gender differences in satisfaction.
3. Tenure: Tenure is positively related to job satisfaction.
4. Marital Status: Married workers are more satisfied with their jobs

Q8. “Females working on petrol pumps are breaking the gender stereotype” Explain the various
perceptual errors and justify the above statement by highlighting the stereotype error in detail.

Model Answer

Various Perceptual Errors:

• Halo Effect
• Compartmentalization/ Pigeon holing
• Self fulfilling prophecy
• Recency Effect

Females working on petrol pumps are definitely breaking the gender stereotype as we tend to
categorize females to do a particular type of work only. Following are points highlighting the stereotype
error.

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Stereo Typing “Making positive or negative generalizations about a group or category of people,
usually based on inaccurate assumptions and beliefs and applying these generalizations to an individual
member of the group.” For e.g. Girls are very talkative, Rich is cruel to poor.

Stereotypes are characteristics imposed upon groups of people because of their race, nationality, and
sexual orientation. These characteristics tend to be oversimplifications of the groups involved, and
while some people truly do embody the traits of their stereotype, they are not necessarily
representative of all people within that group. Stereotypes are not always accurate and even if
positive, can be harmful.

A gender stereotype is a generalised view or preconception about attributes or characteristics, or the

roles that are or ought to be possessed by, or performed by women and men. A gender stereotype is
harmful when it limits women’s and men’s capacity to develop their personal abilities, pursue their
professional careers and make choices about their lives.

Gender stereotyping refers to the practice of ascribing to an individual woman or man specific
attributes, characteristics, or roles by reason only of her or his membership in the social group of
women or men. Thus Females working on petrol pumps are breaking the gender stereotype

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Module 3
Motivation– Concept, types of motivation and Theories-Maslow, Herzberg, McGregor. Leadership-
Concept, Leadership styles and Theories- Trait Theory, Path Goal Theory,
Blake Mouton-Managerial Grid

CO3- The student will be able to distinguish between the various theories of motivation and their
application in organizations and also be able to apply these theories to practical problems in
organizations. They will also be able to distinguish between a number of different leadership
theories & styles and contribute to the effective performance of a team as the team leader or a
group member.

Q1. Many millionaires like Mr. Dhirubhai Ambani, Mr. Ratan Tata and alike keep working even in the
latter years of their life. What do you think is the motivation for them, explain using Maslow Theory.

Model Answer

Maslow’s need hierarchy theory explains that once a given level of need is satisfied it no longer serves
to motivate man. Then, the next higher level of need has to be activated in order to motivate the man.
Following are the various levels of need hierarchy given by Maslow:

Many millionaires like Mr. Dhirubhai Ambani, Mr. Ratan Tata and alike keep working even in the latter
years of their life. This can definitely be explained by self actualization level.

If all the earlier 4 levels of need are satisfied, the need for self actualization comes to fore. Maslow
characterized self actualization as the desire to become everything that one is capable of becoming.
The person who has achieved this highest level presses towards the full use of and exploitation of his
talents, capacities and potentialities. In other words, to self actualize is to become the total kind of
person that one wants to become to reach the peak of one’s potential. Since 1st 4 levels of needs of
Mr. Dhirubhai Ambani and Mr. Ratan Tata got satisfied, their desire, commitments and expertise to
achieve greater heights in their business and career can be attributed to the self actualization need.

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Q2. Gaurav - Bank Manager of Divya Laxmi Bank was highly motivated at the time of joining, after his
joining he realize that efficiency of his branch is declining day by day and customer complaints are
increasing. Employees are complaining about new technical upgradation of banking function and
trying to avoid the work responsibilities by giving excuses. If you were Gaurav what will you do to
motivate your employees to perform better?

Model Answer

• Identification of problem
• Understanding the needs of employees and customer
• Motivational theory to be applied

Q3. Demonstrate how the different types of variable pay programs can increase employee
motivation?

Model Answer

According to Maslow’s need hierarchy, all individuals in the organization are at different level of
pyramid, according to their lifespan. Variable pay programs can increase employee motivation in an
organization.

Variable pay programs address the need of employees who are at the lower levels of the pyramid i.e.
physiological, safety and sociological needs. Variable pay, also known as incentive pay, refers to pay
earned beyond an employee’s normal weekly, monthly or annual salary. Not a guarantee, it is paid out
only if an individual or team achieves a goal. Typically these goals relate to profit, sales growth,
productivity or customer service improvement.

Q4. Mr. Raju, a fresher, has recently joined an MNC and is very dissatisfied with his reporting
authority, who he thinks is dominating and takes the decisions by his own without consulting
subordinates,. Also his reporting authority gives very less inputs for working, gives importance to
rules and is very rigid. Identify & explain the leadership style of Mr. Raju’s reporting authority that is
referred to in this statement.

Model Answer

Leadership Style: Autocratic Leadership

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Characteristics of An Autocratic Leader:

• Little or no input from group members

• Leaders almost all of the decisions
• Group leaders dictate all the work methods and processes
• Group members are rarely trusted with decisions or important tasks
• Work tends to be highly structured and very rigid
• Creativity and out-of-the box thinking tend to be discouraged
• Rules are important and tend to be clearly outlined and communicated

Q5. Mr. Shrinivasan, who has grown from a mid level executive to a senior level manager in a career
span of 21 years in an MNC, is able to realise the feeling of prestige and accomplishment. Analyse
the theory of motivation that has been referred here and which other levels of needs has Mr.
Shrinivasan already reached? Also, Mr. Shrinivasan, a senior manager, shares information,
encourages open communication with his subordinates and sticks to his ideals. Identify & explain
the leadership style that is referred to in this statement.

Model Answer

Theory of Motivation Referred Here: Maslow’s Need Hierarchy Theory

Other Levels Of Needs Where Mr. Shrinivasan Already Reached:

• Physiological Needs
• Safety Needs
• Belongingness & Love Needs
• Esteem Needs
Leadership Style: Participative style of Leadership
Characteristics Of Participative Leader:
• Emphasize collaboration and the free-flow of ideas
• Solicit opinions from group before making decision
• Authority to make final decision is with the leader

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Q6. As a manager what steps would you apply to motivate your employees after observing them
perform well?

Model Answer

Motivation Theories of motivation can broadly be divided into two categories:

1. Content Theories, 2. Process Theories.

2. Content theories address the question of what motivates people. These theories seek to
identify the needs which cause individuals to perform in certain ways.
Content Theories are: (a) Maslow’s Theory (b) McGregor’s Theory (c) McClelland’s Theory (d)
Herzberg’s Two Factor Theory

Q7. Have you ever been supervised by someone you felt had genuine leadership qualities? What trait
do you believe differentiated him or her from someone who has supervised you but lack in leadership
qualities.

Model Answer
• Leadership qualities in the person you felt had genuine leadership qualities.
• Leadership qualities of another person who has supervised you but lack in leadership qualities.
• The difference between the supervision and the personality traits of both.

Q8. Distinguish between Trait approach & Behavioral approach. Which unique Traits apply to
successful leader like M.S. Dhoni.

Model Answer

Trait approach: Theories that consider personality, social, physical or intellectual to differentiate
leaders from non leaders.

Behavioral approach: Theories proposing that specific behaviors differentiate leaders from non-
leaders.

Traits apply to successful leader like MS. Dhoni:

1. A strong desire for accomplishment.

2. Persistent pursuit of goals
3. Creativity & intelligence used to solve problems
4. Initiative applied to social situations
5. Self-assumed personality
6. Willingness to accept behavioral consequences
7. High tolerance of ambiguity

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Module 4
Group and Team Behavior-Foundations of Group behavior -Group development; Group properties:
Roles, norms, status, size and cohesiveness, Group decision making techniques, Teams-Type and Team
Dynamics

CO4- The future managers/ students will be able to analyse the behaviour of individuals and groups
in organisations in terms of the key factors that influence organizational behaviour and demonstrate
skills required for working in groups (team building).

Q1. ABC Company wants to expand their operations globally for which they decide to change task
groups to self-managed teams. Do you think self-managed teams are better option for a firm going for
global expansion? How do teams affect the organization behavior?

Model Answer

• Task group- concept and explanation

• Self-managed team- concept and explanation
• Advantages of self-managed teams and how it will be beneficial for the global expansion (less
supervision, more autonomy will motivate employees, less supervision will result in better
performance. Team will take responsibility of tasks assign to them.).

Q2. In an organisation, there are 8 members working on a project and have encountered a problem
in their work. All the 8 members are trying to resolve the problem and complete the work assigned
to them. Identify which type of group is this and justify your answer with proper reasons.

Model Answer

Type of Group: Task Group

Reasons Why It Is Said To Be A Task Group:

• All the members are working together to complete a task (to resolve the problem).
• All the members are working in the same direction i.e. having problem solving orientation.
• The boundaries of the group are not limited to its hierarchical superior.
• The members of the group can have cross command relationships.

Q3. If you are made a member of Environment Club of your college, what are the various stages of
Group Development that you will go through while working for the club?

Model Answer

The various stages of Group Development that I will go through while working for the club are as
follows

1. Forming: Initial entry of members to a group will be done by the secretary of the club through
interview of the interested candidates. In this stage the newly appointed members will get to

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know each other. In this stage What to do, How to interact, Why the task before them is
important etc. will be discussed.
2. Storming: Once the group is formed, it is likely to go through the next stage i.e. storming. Here
ideas for conducting various environmental activities will be discussed which can probably
result in to difference of opinion and ideas. This usually results into Formation of coalitions and
cliques. In this stage everyone wants to be heard and have control, Thus Situation of storm
arises.
3. Norming: In this stage consensus of thoughts take place and members decide the same set of
environmental activities to be conducted. Here, the role of leader is important as he is the one
who brings the entire team together. This is the point at which the group really begins to come
together as a coordinated unit. In this stage, the members are clear with Spoken and unspoken
rules about interactions, tasks and purposes.
4. Performing: In this stage the team works together as one unit efficiently thus contributing
towards the success of all the environmental activities.
5. Adjourning Stage: In this specific case of environment club of college, Adjourning stage will not
take place as this particular stage is witnessed by temporary groups such as problem solving
groups, Project groups etc.

Q4. In an organisation, there is a team of 12 members from quality control department who usually
meet once in a week to discuss on issues in quality control and upgradation of quality. Identify what
type of team is it and state what factors will determine the success of this team?

Model Answer

Type Of Team: Problem-Solving Team

Characteristics Of Problem-Solving Teams:

• Team members usually meet once a week to discuss issues.

• The team members are from same the same department
• Members share ideas or offer suggestions on how work processes and methods can be
improved.
• The team members come with their ideas & suggestions to resolve the issues, but rarely have
the authority to implement it unilaterally.
• All the team members aligned in the same direction and discuss on similar issues.

Factors Determining Success of a Team:

• Adequate Resources
• Leadership & Structure
• Climate of Trust
• Performance Evaluation & Reward Systems

Q5. Would you prefer to work alone or as part of a team? Explain why? Analyze the term team
dynamics.

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Model Answer
Definition: “A small number of people with complementary skills who are committed toa common
purpose, performance goals, and approach for which they hold themselves mutually accountable.”
Five Stages of Team Development or Life Cycle of a Team

When a number of individuals begin to work at interdependent jobs, they often pass through several
stages as they learn to work together as a team. These stages are:1)Forming: 2)Storming: 3)Norming:
4)Performing: 5) Adjourning:
Team dynamics are a very important part of working life. They can have a big impact on:

• The profitability of an organisation.

• Whether people enjoy their work.
• Staff retention rates.
• Team and individual performance.
• Company reputation.
• And many others.
However, team dynamics are often neglected or ignored. This can have a significant impact on the way
a team works. In this article, we describe what team dynamics are, what causes problems in team
dynamics, and how they can be improved.

Q6. Demonstrate how norms and status exert influence on individual behavior of employees.
Identify different stages of group development; explain how group size affects group performance?
Model Answer
Individual behavior can be defined as a mix of responses to external and internal stimuli. It is the way a
person reacts in different situations and the way someone expresses different emotions like anger,
happiness, love, etc.
Certain individual characteristics are responsible for the way a person behaves in daily life situations as
well as reacts to any emergency situations. These characteristics are categorized as
• Inherited characteristics
• Learned characteristics
The 5 Stages of Group Formation
Forming, Storming, Norming, Performing, Adjourning

3 Main Factors Affecting Group Functions

Group Size:
Group size is an important factor that affects functions performed in a group. Smaller groups complete
tasks faster than larger ones. They are also more productive than large groups. Large groups, on the
other hand, generate more facts, collect diverse and open viewpoints, and generate more solutions to
problems.
Increase in size of the group, contribution of individual member tends to decrease. The responsibility
for group goal gets dispersed amongst larger number of members and members, therefore, tend to
slacken in their individual performance. Relationship between individual input and group output
cannot be maintained as group results cannot be attributed to any single person. This tends to reduce
efficiency of the group

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Large groups also develop sub-groups, restrict participation by some members, take too much time in
making decisions, promote dominance by few etc. Thus, the optimum group size should be large
enough to invite diverse viewpoints and small enough to fix responsibility of each individual and
promote inter-personal interaction.

Group Composition

It consists of the kind of individuals that make a group. Group composition plays important role in
affecting group performance. Groups can be heterogeneous or homogeneous. Heterogeneous groups
are composed of dissimilar individuals, in terms of age, gender, education, work experience, skills,
culture etc. Homogeneous groups, on the other hand, are composed of similar individuals in terms of
these attributes. Heterogeneous groups are generally more effective as they have people with diverse
activities, skills and backgrounds. Though there may be conflicts of opinion, they perform more
effectively than homogeneous groups.

Group Goals and Tasks

Groups are formed for some goals and perform tasks to achieve the same. These goals promote
cooperation amongst group members and may also result in role conflict. The tasks performed by
members to achieve group goals also vary in their skills, complexity, competence, etc.

Q7. Explain group behaviour. Think of a formal group of which you are a member and analyze the
characteristics of formal group.

Model Answer

Group Behaviour: Group behavior is the attitude, feeling and thought of a collection of people that can
be observed or noticed.
Formal Group: A formal group is one that is deliberately created to perform a specific task. Example of
such a group is a committee and other examples are work unit such as a small departments, research
and development laboratory a management team or a small assembly line.
Characteristics of Formal group:
1. Shared Goals
2. People see themselves as member
3. Interaction among members

Q8. Coming together is a beginning, keeping together is progress, and working together is success”.
Analyze the above statement highlighting the importance and benefits of teamwork in a startup

Model Answer

Working in a team means holding each other mutually responsible for the results rather than merely
meeting a manager’s demands for results as in the traditional approach.

Following are the reasons why teamwork is extremely important particularly for start-ups

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Organized workflow

Things move very fast in startups, what with everyone working in overdrive. There’s an awful lot to be
done in a small time frame. In such a situation, it becomes extremely important to ensure that
everybody is on the same page and there is no overlap of work, since that could quickly result in chaos
and catastrophe. Someone needs to take charge and make sure there is active and efficient
communication in the team so that the workflow stays organized.

Builds trust

The members of a startup team, though small in number, usually come from very different backgrounds
and have expertise in different areas. All of them have their own style of working and their own
philosophies that they stand by. Uniting such a team to work together towards a shared goal can be a
difficult task. Everyone has different responsibilities and different expectations, so coordination doesn’t
always come easy. To overcome this hurdle, good teamwork is needed. This allows the team to bond
over group activities and start to feel comfortable with each other. Teamwork builds trust, which is a
touchstone for any team’s success.
More learning opportunities
When you work with a team, there are people whose work shares context with yours, which makes it
easier for all of you to challenge each other’s ideas and grow together in the process. An individual
working alone on a project will take much more time than a team will, thereby working on fewer
projects and greatly reducing the number of learning opportunities. People working in startups need to
learn a lot very quickly, and a good team makes sure everybody grows together
Dealing with high risk and pressure
The startup scene today is highly competitive and saturated, and it’s very difficult to survive while
keeping your competitive edge. The risks are huge and there is constant pressure to perform at your
best. You need very resilient people in startups who take problems as challenges and thrive under
pressure. If the founding team isn’t rock solid, there isn’t much hope for the startup. They need to
maintain good teamwork and help everyone face their problems with a headstrong attitude. Every team
member must handle hardships boldly and complement each other’s strengths. They must be ready to
step out of their comfort zones for each other in times of need, and that can only happen when they
trust and believe in each other’s abilities.
Improved performance
The hallmark of a promising startup is its ability to roll out a good product without compromising on
speed, which requires prompt decision-making and a system of quality control. If all team members in a
startup work closely together, they can keep track of each other’s work, thus maintaining a consistent
standard. This improves the overall performance of the startup.

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Module 5
Conflict and Change-Understanding organizations- Managing organizational culture, Managing
organizational conflict, power & politics; Organizational life cycle and Organisational change

CO5- The students will be able to justify how organizational change and conflict affect working
relationships within organizations and demonstrate how to apply relevant theories to solve
problems of change and conflict within organizations

Q1. If your college timing is increased by 5 hours, what will be the factors for resistance? Develop a
Kurt Lewin Model for managing the resistance.

Model Answer

If college timing is increased by 5 hours, Following will be the factors for resistance

Fear of unknown:

Changes often bring with it ambiguity and uncertainty. If college timing is increased by 5 hours, some
may fear that they will be unable to attend college for entire duration. Students will have questions like
what will be done in these 5 extra hours?, what more activities they will have to do? Will attendance be
taken for these extra 5 hours? They may therefore develop a negative attitude towards the
introduction of this new rule.

Pressure of multi tasking:

The students will be under pressure to multi task and manage all their activities like attending college
for another 5 hours, attending coaching classes, Pursuing hobby, Giving time to family and friends etc.

Domino Effect:

The students will resist change because this one change will bring about multiple changes. If college is
increased by 5 hours, they will have to change the timing of their other activities as well

Disruption of stable schedule/ Disruption of comfort zone.:

It is often observed that human beings tend to get into their comfort zone and don’t want to come out
of it. Thus students will resist this change as it will disrupt their already set schedule.

This resistance to change can be managed by Kurt Lewin model as follows

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Q2. Explain Competing and collaborating style of conflict in view of the below mentioned Case and
also suggest which will be a better style for managing the conflict in this situation

Case: The conflict in this case arises from the management styles of two managers, Ashish and Suresh,
who head two different departments in the same organization. Ashish’s problem with Suresh is that
the latter is taking staff from his department without his approval. On the other hand, Suresh feels that
he is doing the right thing by taking staff from Ashish’s over staffed department.

The situation is compounded by the fact that most of the people who work under Ashish are asking to
be transferred while Ashish feels that his department is not overstaffed. He feels that Suresh is
interfering with his duties while Suresh is sure that Ashish would do well with a leaner workforce. Amit,
the director, has to help resolve the conflict between the two managers after they bitterly confront
each other in his presence. Apart form Suresh’s and Ashish’s viewpoints the director also has to
consider Vijay’s opinion about the conflict. Vijay is the immediate Lab manager who was recently
replaced by Ashish. He had the same problems that Ashish is having with Suresh, but he was able to
take care of them without directly confronting Suresh.

Model Answer

Competing: The style of conflict management that is evident in this case is competing, which is also
known as forcing Suresh would have gone to any heights to obtain Ashish’s people is no one stopped
him. On the other hand, Ashish was completely sure that he needed every member of his workforce
and Suresh had no business poaching them from his department. Each of the managers believed that
their actions or opinions were right and the other person’s had to be wrong. Being forceful may result
in the quick ending of a conflict; unfortunately it is not the best way to solve a conflict. By being
forceful, neither Suresh nor Ashish were able to achieve their objectives, instead they only exposed
unprofessional behavior when they decided to exchange words in front of their director.

Collaborating: The best conflict management style that could have worked in this situation is the win-
win, also known as the collaborating or problem confronting/solving style. This style of conflict
resolution involves all parties concerned working with one another to find mutually beneficial solution
to the problem causing the conflict. It seems that Suresh’s approach to getting more personnel for
himself has been problematic not only to Ashish but also to Vijay, Ashish’s predecessor. Both view
Suresh as being too ambitious, but Vijay was able to curtail Suresh’s attempts to poach his personnel
while Ashish has been unable to do so. Instead of waiting to a point where both managers developed

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 Course: Organizational Behaviour
animosity and hard feelings towards each other, one or both of them would have tried to find a
solution that would have been beneficial to both of them. One such solution would have entailed
letting Suresh gain some of Ashish’s personnel through the right channels. This would have helped
Suresh get the talent he needed in his department while Ashish would have a manageable personnel
size to manage since he could not deal with a big one. He would also have the chance to develop the
kind of working environment that had characteristics in which he could optimally work in.

Hence Collaborating is a better option than competing in this particular case.

Q3. A CEO of a company having its business in entertainment industry seeks to make changes in the
working structures and mechanisms of the organisation. Identify the factors that would have made
the CEO to think to bring about this change. Also the changes suggested by the CEO are approved by
the board members but, some subordinates have showed resistance to these changes. How can the
CEO overcome this problem of resistance to change?

Model Answer

Factors That Force To Bring About Change:

• Nature of the workforce
• Technology
• Economic Shocks
• Competition
• Social Trends
Overcoming Resistance To Change:
• Education & Communication
• Participation
• Building Support & Commitment
• Implementing Changes Fairly
• Manipulation & Cooptation
• Selecting People who Accept Change
• Coercion

Q4. A company is planning to launch its product in the market. A conflict has arisen between two
senior members of the marketing department on the issue of media to be used for promotions. This
has created a problematic situation for the subordinates to work. State and explain what all
techniques can be used to resolve this conflict.

Model Answer

Techniques For Resolving Conflict:

• Problem Solving
• Superordinate Goals
• Expansion of Resources
• Avoidance
• Smoothing

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 Course: Organizational Behaviour
• Compromise
• Authoritative Command
• Altering the Human Variable
• Altering the Structural Variable

Q5. Mr. Rao CEO of Paraben &Sons Company decided to bring structural change in the organization.
He wants technical upgradation in all functions of the organization for which organization will be
going through a major restructuring. Some senior employees resist to this change as they have to
undergo technical training which might result in losing their expertise. While young employees
support the change and see this as an opportunity to grow. Two groups of employees were formed in
the organization senior vs young employees and their working relations were deeply affected. Due to
this conflict Mr. Rao was unable to make the change in the organization. Suggest the appropriate
major to solve the problem.

Model Answer

Level of Change- Individual, Group and Organizational

Factors responsible for resistance and conflict- loss of expertise, loss of power, fear
of challenges etc.
Managing Planed change
• Develop goals and objectives
• Select the change agent
• Diagnose the problem
• Select Methodology
• Develop Plan
• Strategy for implementation of the plan

Kurt Levin’s force field theory

Q6. Some people say that conflict is inherently bad while others find it desirable? Which view of
conflict do you subscribe to? How can managers resolve conflict in their organizations?

Model Answer

• The traditional view of conflict argues that it must be avoided—it indicates a malfunctioning
with the group.
• The human relations view argues that conflict is a natural and inevitable outcome in any group
and that it need not be evil, but has the potential to be a positive force in determining group
performance.
• The inter-actionist approach proposes that conflict can be a positive force in a group but
explicitly argues that some conflict is absolutely necessary for a group to perform effectively.

Five conflict-handling intentions can be identified

• Competing
• Collaborating
• Avoiding
• Accommodating
• Compromising

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Q7. Rosabeth Kanter, a leading authority on change, stated that trying to change an organization is
like trying to teach elephants to dance. Why is changing an organization’s direction so difficult.

Model Answer
Level of Change- Individual, Group and Organizational
Factors responsible for resistance and conflict- loss of expertise, loss of power, fear of challenges etc.
Managing Planed change
• Develop goals and objectives
• Select the change agent
• Diagnose the problem
• Select Methodology
• Develop Plan
• Strategy for implementation of the plan

Kurt Levin’s force field theory

Q8. Explain the various causes for change in organization and Demonstrate how Globalization &
Workforce diversity has forced to bring the change in an Organization.

Model Answer

Organizational Change: Organizational change is the process through which an organization moves
from the present state to an improved state change is vital for organizations survival.

Globalization & Workforce diversity has forced to bring the change in an Organization:

Globalization: Globalization has made organizations to rethink the boundaries of their markets and to
encourage their employees to think globally. Globalizing and Organization means rethinking the most
efficient ways to use resources, gather and disseminate information, and develop people to become
Global citizens.

Workforce Diversity: Related to globalization is workforce diversity which is a powerful external force
invoking change. Diversity makes an organization reposition itself, reposition its strategy from a brick
and mortar to an e-commerce environment, launched a new project, create a new idea, developer new
marketing plan, design a new operation, and assess emerging trends from a new perspective

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