Question Paper
Organizational Behaviour and HRM (MB251) : July 2003
Part A : Basic Concepts (30 Points)
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1.
Saba is a manager at Colonial Bank. She expects to be a vice president by the time she is 35
years old, preferably sooner. During the past twelve months, she has worked an average of 65
hours per week. She told a co-worker that she is most productive because she works even
after everyone else leaves. She fired two tellers because she didn't think they were learning
their jobs fast enough. One might conclude that Saba
a.
b.
c.
d.
e.
2.
4.
5.
< Answer >
Industrial union
General union
Craft union
Anarchist union
Predatory union.
Which of the following are important to an HR professional because they must be able to
effectively communicate, negotiate and assist team development in the workplace?
a.
b.
< Answer >
Organizational culture
Organizational development
Employee involvement
Employee relations
None of the above.
Anand is an electrician by trade while his best friend Arun works as a carpenter for the top
homebuilder. Both men are union workers. Which of the following is most probably the type
of union to which both Anand and Arun belong?
a.
b.
c.
d.
e.
< Answer >
Low differentiation
Similarity
Halo
Leniency
Recency.
Sanjana asks the HR department staff to explain her newly acquired, company provided
health insurance coverage to her. She is having considerable difficulty in understanding the
information provided to her in the employee handbook. Which of the following HR functions
would have this responsibility?
a.
b.
c.
d.
e.
< Answer >
Has Type A personality
Has Type B personality
Has no personality
Saba is a good team player
Saba is an autocratic leader.
Mary supervises four employees. She tends to be very extroverted and evaluates her
employees who are extroverted more favorably. This is an example of which of the following
error?
a.
b.
c.
d.
e.
3.
This part consists of questions with serial number 1 - 30.
Answer all questions.
Each question carries one point.
Maximum time for answering Part A is 30 Minutes.
< Answer >
Decision making skills
Technical skills
1
c.
d.
e.
6.
A company-sponsored program that provides employees with counseling and other kinds of
professional help to deal with stressors such as alcohol, drug abuse and family problems is
known as
a.
b.
c.
d.
e.
7.
9.
< Answer >
Displaying machiavellianism
Stereotyping
Influenced by the halo effect
Displaying cognitive dissonance
Cohesiveness.
The key question “To what degree will there be rules and regulations to direct employees and
managers?” is answered by which of the following?
a.
b.
c.
d.
e.
< Answer >
A sabbatical program
A reduction of uncertainty program
A nonfunctional strategy program
An employee assistance program (EAP)
Safety program.
A manager who always seeks to employ married males because of a belief that they are more
stable employees, is likely to be
a.
b.
c.
d.
e.
8.
Human relations skills
Conceptual skills
None of the above.
< Answer >
Work specialization
Departmentalization
Chain of command
Formalization
Division of labor.
< Answer >
An approach to job design based on the idea that information from other people and workers'
own past behavior influences worker’s perception and response to the design of their jobs is
known as
a.
b.
c.
d.
e.
Social Information Processing Model
Job Characteristics Model
Herzberg's Motivator-Hygiene Theory
Human Relation approach
Engineering approach.
10. When the employees of Learning-for-all Corporation speak of their deceased founder
Leonard, they are engaging in the use of which of the following to communicate its culture to
others?
a.
b.
c.
d.
e.
Core values
Rituals
Stories
Symbols
Language.
11. There are four decision-making styles that are based on way of thinking and tolerance for
ambiguity. The decision-making style that is concerned with the achievement of peers and
subordinates and characterizes decision makers who work well with others is termed as
a.
b.
c.
d.
< Answer >
< Answer >
Analytical
Conceptual
Behavioral
Directive
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e.
Technical.
12. Which of the following term best fits the description of “pressures, demands and strains” that
can go hand-in-hand with job duties and responsibilities?
a.
b.
c.
d.
e.
Stress
Conflict
Orientation
Grievance
Discipline.
13. Because the capacity of the human mind for formulating and solving complex problems is far
too small to meet the requirements of full rationality, individuals operate within the confines
of
a.
b.
c.
d.
e.
< Answer >
Departmentalization
Formalization
Span of control
Matrix structure
Bureaucracy.
17. The view that managers in the host country know the best work approaches and practices for
running their operations is referred to as
a.
b.
c.
d.
e.
< Answer >
Vestibule training
Role playing
Case Exercise
Cross-training
Computer modeling.
16. When the First National Bank of Winslow incorporated changes to their operational methods,
such as increasing the number of employees directly reporting to one manager, they were in
essence of modifying which of the following function within their organization?
a.
b.
c.
d.
e.
< Answer >
Group size
Leadership styles
Reward systems
Noise in the communication channel
None of the above.
15. Which of these involves having team members understand and practice each other's skills so
that members are prepared to step in and take another member's place when the person leaves
the team?
a.
b.
c.
d.
e.
< Answer >
Objective Rationality
Subjective Rationality
Bounded Rationality
Consicious Rationality
Deliberate Rationality.
14. Sources of conflict have been condensed into three general categories: communication,
structure and personal variables. Which of the following is not an example of a structural
variable?
a.
b.
c.
d.
e.
< Answer >
< Answer >
Individualism
Collectivism
Ethnocentrism
Polycentrism
Parochialism.
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18. A cultural measure of the degree to which people tolerate risk and unconventional behaviour
is referred as
a.
b.
c.
d.
e.
Uncertainty avoidance
Individualism
Power distance
Collectivism
None of the above.
19. An organizational structure that assigns specialists from different functional departments to
work on one or more projects being led by project managers, is referred as
a.
b.
c.
d.
e.
c.
d.
e.
c.
d.
e.
< Answer >
Manipulation
Negotiation
Co-optation
Coercion
Participation.
24. High consistency between group and organisational goals combined with a low level of
cohesiveness will generally lead to
a.
b.
c.
< Answer >
Intuitive
Perceptive
Introvert
Risk taking
Extrovert.
23. Change agents have several tactics for dealing with resistance to change. When a change
agent seeks out the opinion of the leader of the resistance group, not to seek a better decision,
but to get his endorsement, which of the following is being used?
a.
b.
c.
d.
e.
< Answer >
Introducing a time management program
Achieving a match between the employee’s abilities and job requirements in the
selection process
Clarifying job responsibilities and providing clear performance objectives
Redesigning jobs in a manner that increases the degree of challenge
Withholding information about the performance of individual employees.
22. Individuals who like solving new problems, dislike routine, jump to conclusions, and dislike
taking time for details and precision, can most accurately be described as
a.
b.
c.
d.
e.
< Answer >
Uses only a system of centralized control
Has an unbroken line of control from top management to the lowest levels with
clarification of reporting systems
Determines the number of subordinate a manager can control
Places emphasis on the decentralisation of the organisation
None of the above.
21. Which of the following initiatives is unlikely to reduce the level of employee stress?
a.
b.
< Answer >
Simple structure
Bureaucratic structure
Matrix organisational structure
Cross-Functional structure
None of the above.
20. The chain of command espoused by Fayol, Weber and Taylor is best described as a system
which
a.
b.
< Answer >
< Answer >
A substantial decrease in productivity
A moderate decrease in productivity
A moderate increase in productivity
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d.
e.
A strong increase in productivity
No significant change in productivity.
25. In a workforce increasingly dominated by short-term employment which of the following is
most likely to motivate a group of employees?
a.
b.
c.
d.
e.
Making sure that the workers are aware of their shortcomings and encouraging them to
improve their work
Providing opportunities for training
Using devices such as ‘employee of the month’ awards
Ensuring that the work done is inherently satisfying
All of the above.
26. According to Vroom’s expectancy theory, an employee who lacks confidence in his or her
ability is likely to have poor motivation due to
a.
b.
c.
d.
e.
< Answer >
Mentoring
Career-oriented appraisals
Job Ranking
Job Posting
Job rotation.
30. A manager born and raised in Argentina employed by an organization located in Australia
and assigned to manage an operation in Indonesia would be considered as a(n)
a.
b.
c.
d.
e.
< Answer >
Applying learned knowledge
Producing high-caliber work
Recognized by colleagues
Already driven
Both (a) and (b) above.
29. A manager utilizes which of the following to match an employee's strengths and weaknesses
with a feasible career path.
a.
b.
c.
d.
e.
< Answer >
HMO
PPO
EAP
Consumer society
None of the above.
28. Providing appropriate incentives for professional employees is challenging because they are
a.
b.
c.
d.
e.
< Answer >
Low instrumentality
High expectancy
High instrumentality
Low valence
Low expectancy.
27. A medical organization consisting of specialists operating out of a community-based health
care center is a(n):
a.
b.
c.
d.
e.
< Answer >
< Answer >
TCN
PCN
HCN
WCN
CAN.
END OF PART A
5
Part B : Caselets (50 Points)
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This part consists of questions with serial number 1 – 7.
Answer all questions.
Points are indicated against each question.
Detailed workings should form part of your answer.
Do not spend more than 110 - 120 minutes on Part B.
Caselet 1
Read the following caselet carefully and answer the following questions:
1.
What are the elements that need to be addressed by ‘Singapore Airlines’ while designing their
organizational structure?
(7 points) < Answer >
2.
Identify the advantages and disadvantages of working for a decentralized organization. What measures
Singapore Airlines Should take to make decentralization effective?
(8 points) < Answer >
When you run a large organization, you are likely to have a large number of employees. The Singapore Airlines
Group has more than 29,000 employees. This large workforce comprises a diverse mix of people who
bring a range of skills, attributes and personalities to the workplace. They are employed in the
Group’s home-base in Singapore and in as many as 80 diverse locations, all around the world.
Modern organizations like the Singapore Airlines Group need a structure that enables people to work and deal
with one another in a co-ordinated and co-operative way as they work towards the goals of the business.
A very small business does not really need a formal structure and is unlikely to have one. As it grows, however,
some sort of formal structure will be required. As it grows even larger, its ability to construct a proper
organizational structure may well determine its fate.
Departmentation is the process by which certain activities or parts of an organization are grouped and then
assigned to managers and other staff. How this is done depends upon a range of issues related to each
organization.
Ideally, the chosen structure will:
•
Include every part of the organization
•
Relate each part to every other part
•
Show where the authority and responsibility of different individuals and their departments lie
•
Enable everyone within the organization to assess their roles and status.
Airlines operate in a competitive environment. A key area of competition for them is the quality of customer
service. Customer service helps to distinguish one airline from another, and to give one an advantage over the
other.
In order to provide the type of service that customers want, airlines need to be flexible. They must allow
employees, scope to make decisions that take into account changing circumstances in a variety of environments.
It is mainly for this reason that Singapore Airlines gives considerable autonomy to each part of the organization.
There are many issues associated with decentralizing a business. These include:
i.
Maintaining lines of communication: The structure must continue to provide information for employees so
that, even though they work for just one unit, they know how other parts of the enterprise are working to
serve the customer.
ii. Staff motivation: The structure must provide job satisfaction and be capable of motivating all employees,
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whatever their job.
Achieving goals: Employees need to know the goals set for them.
Thinking globally whilst acting locally: Employees need to respond positively to local needs whilst
remaining conscious of the global nature and standard requirements of the Group’s activity.
In developing its organizational structure, Singapore Airlines has put these considerations at the forefront of its
thinking, placing emphasis on empowering individuals to make decisions. This enables employees to make
decisions which allow them to respond to changing conditions more effectively.
The functional organization chart shows lines of authority between different managers. It also illustrates the flat
structure of Singapore Airlines; there are few levels of authority within the hierarchy. By creating a flatter
organizational structure, it was possible to push autonomy downwards. This creates a more dynamic and flexible
business that empowers people to make decisions in response to customer needs and to changes in the business
environment. This in turn leads to job enrichment; all jobs at all levels are made worthwhile and more satisfying.
A key problem that can result from organizing by function is that people become compartmentalized. They come to
know one part of the business well, but have no experience of the business as a whole. This may limit not only
their understanding of it but also their empathy towards it.
To avoid this, Singapore Airlines has a policy of moving key staff around, using a process of job
rotation. This process has provided managers with cross-functional expertise and a better knowledge of
the business as a whole. There are limits to this practice; it cannot be applied to key specialist areas such as
engineering.
As a global business with operations in more than 80 countries, Singapore Airlines has also divided up the overseas
business by geographical area. For each region, it has created a senior vice-president with authority for that region.
Being organized geographically makes it easier for a large company to:
•
Respond quickly to local issues and problems
•
Build-up a knowledge of specific markets
•
Tailor its strategies to local conditions, laws and customs.
Within this structure, general managers for each country have the independence to make their own decisions,
allowing the organization to respond more quickly and appropriately to market conditions.
Singapore Airlines has looked to provide an efficient operational structure that identifies clearly where decisions
are made, by whom and with regard to which sections of the business.
As the Group pursues its corporate objectives, it is looking to free up its managers to make decisions within their
own sphere of influence, without continuous reference back to headquarters.
iii.
iv.
Caselet 2
Read the following caselet carefully and answer the following questions:
3.
What steps ‘Cummins’ should adopt to manage diversity effectively in their organization?
(7 points) < Answer >
4.
Why did ‘Cummins’ start the Diversity Initiative? Discuss.
(7 points) < Answer >
5.
Evaluate how the ‘Diversity Initiative’ helped Cummins to become competitive?
(8 points) < Answer >
Cummins is one of the world’s leading manufacturers of high performance, low emission diesel engines and
power generation sets. The company also includes component technology leaders such as Hoslet turbochargers,
Newage alternators, Fleetguard filtration systems and Nelson exhaust products. Operating in business-tobusiness markets, Cummins reported worldwide sales of $6.6 bn and employed 28,500 people in 1999. The
company has been established in the UK for almost 50 years and operates six highly productive manufacturing
plants located across the country.
As a global company, people are viewed as the key to the performance of the company. There is great emphasis
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upon having a diverse, achievement-orientated workforce and this is viewed as essential to the process of
continuously improving performance. A diverse workforce also helps to reflect the increasingly diverse
international customer base of the company.
In the past, large engineering businesses were perceived as being predominantly white, male-dominated
organizations. In recent years this notion has disappeared as the labor market has changed.
The nature of traditional relationships between employers and employees has moved forward. As a result there
has been a trend towards female employment, with increasing pressure for more women and others from diverse
backgrounds to be appointed as senior managers and key decision-takers.
Organizations are now much more sensitive to where and how they can compete. Ever-rising customer
expectations, increased competition and globalization make it more important than ever that organizations
employ not just the right kind of people but also the best. This is something that can only be done through an
inclusive strategy that focuses upon all types of people in the community as a potential source of employees.
In a team-based environment, the effectiveness of a team depends upon the mix of the abilities of its members.
Research shows that successful teams require a range of appropriate skills and qualities, and that these are
further enhanced when members of the team include both genders and represent widespread cultures and values.
To recruit the best people and develop the company competitively, it was necessary for Cummins to move
beyond its former approach. This approach focused on local communities and the equal opportunities legislation
and tended to be exclusive. A much wider all-embracing inclusive approach was needed. In this regard
‘Cummins’ started ‘Diversity Initiative’.
The Diversity Initiative involved developing plans, guidelines and policies that would enable leaders within the
business to take it forward and bring it together as an inclusive organization. For example, the creation of:
i.
Leadership Teams within each business operation, the goal is to create teams that include at least one
international person, a woman and a person from an ethnic minority background. These teams have many
responsibilities such as recruiting, mentoring and developing programs for employees from diverse
backgrounds.
ii. Local Diversity Councils
Again, each part of the organization has an active diversity council that meets regularly and develops and
helps to implement diversity plans. Each diversity council develops its own ‘business case’ for diversity
within its area. Councils represent employee’s issues and concerns on diversity matters and develop
improvement ideas for inclusion in the organization diversity plans.
iii. Employee Focus Groups
Either a formal or informal process of discussion takes place with representatives on regular basis.
Joe Mukwala is the Cummins Regional Manager for Southern Africa. He believes that a key part of the Diversity
program is its emphasis upon education and training. In fact, without this, Joe feels that the process of diversity
would simply be tokenism. For example, members of the disadvantaged communities, particularly in Southern
Africa, who are not given access to education and training would only have limited opportunities despite being
in employment.
Joining Cummins Johannesburg regional office in 1996 was a key time for Joe. One of his first actions was to
develop a diversity initiative that would deliberately target able people from the historically disadvantaged
communities. The process involved recruiting talented apprentices, and focusing upon their training and
development. As a result both Cummins and its practices have become well-known within Southern Africa, not
just for its recruitment and development program, but also for its ability to access and gain the most from the
talents of its people.
The Diversity Initiative has ensured that, in seeking a wider and more talented selection of recruits, Cummins
has focused broadly upon demographic groups. Recruitment has taken place using non-traditional sources such
as a range of external agencies as well as the Internet. The process has helped to breakdown the stereotypical
view of Cummins as a ‘traditional’ manufacturing organization. One of the key benefits of this form of diversity
is that the experiences and backgrounds of the recruits is very diverse and covers many experiences. This means
that the process creates a ‘constructive tension’ encouraging employees working together to think of different,
and sometimes new and better, solutions to both technical and business problems. As a result, this process
improves both the capability of the company and its competitive position within key markets.
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A key element in implementing the Diversity Initiative has been the year-by-year Diversity Plan. A plan is an
important element within any initiative as it provides a guide as to what should be happening and how the
initiative should be implemented. For example, the 2000 Diversity Plan set specific objectives across a range of
key areas such as:
Visible Diversity
•
give representation on senior staff groups
•
establish recruitment milestones for each part of the organization
•
define which elements of diversity are being targeted.
Skilled Leadership
•
ensure that leaders have undertaken the diversity training
•
introduce pilot mentoring program.
Most Suitable Organizational Culture
•
introduce diversity training for all employees
•
set benchmarks
•
gain recognition for the program.
Inclusive Environment
•
establish Diversity Councils
•
improve the induction process.
Driven internally, the Diversity Initiative is being audited using internal assessment processes. External agencies
also help with the benchmarking audit. They are able to do so by referencing the plan and the diversity
objectives. From the outset it was clear that in order to achieve the wider aims, the initiative had to be a longterm commitment to diversity rather than a short-term action. Cummins was voted one of the Top 50 companies
for women to work in by Fortune Magazine.
The scheme has significantly changed Cummins’ methods of recruitment. The use of the Internet has helped to
open up more avenues for recruiting diversity. This approach has changed people’s perception of Cummins, as
well as helping to dispel stereotyped views of the engineering industry. Decision-takers have come to realize that
diversity is not just a social policy, but more a long-term opportunity to improve an organization’s competitive
advantage.
Caselet 3
Read the following caselet carefully and answer the following questions:
6.
What are the different forms of informal and formal communications used by Roche in Dorne Project?
(6 points) < Answer >
7.
Good communication is often seen as vital to the efficient running of a firm. Discuss
(7 points) < Answer >
Roche is the large multinational Swiss pharmaceutical and healthcare company, which produces a wide range of
healthcare products. It has been operating in the UK for the past 90 years and now employs around 3,000 people
in the UK and 55,000 worldwide.
Roche has a multi-divisional organizational structure, with four separate business divisions based at various
locations throughout UK. Each division has a high degree of control over the way it runs its business.
Roche is the market leader in three of these four business areas. It is the second largest foreign investor in UK
healthcare and ploughs back more than 20 percent of its turnover into research and development. Roche has
pioneered an integrated approach to its products, based around a ‘cycle of care’.
Until recently, even though Roche was a major player in the UK healthcare market, it was not a household name.
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It’s somewhat conservative approach to publicity affected its attitude towards the media. It reacted when faced
with bad publicity, but rarely talked about its achievements. The company decided to take a more proactive
approach. At the same time it was invited to become a sponsor of the Body Zone in the Millennium Dome. This
gave the company a chance to demonstrate its integrated healthcare capabilities to many million visitors. Also,
Roche could highlight the importance of research and the advances it had made that will enhance health and
well-being in the new century.
As with the all projects the first step was to establish clear objectives.

to raise the profile of Roche

to build the company’s reputation

to create a positive environment for growth of the business
Roche also laid out some clearly defined communication objectives for the Dome Project. These were:
to generate and build employee interests in, and enthusiasm for, Roche’s sponsorship of the Body Zone.

to use its Dome sponsorship to develop new business opportunities.

to actively involve Roche staff in the Dome project

to ensure that the content of the Body Zone reflects Roche’s integrated healthcare capabilities.
Once these communication objectives were established, Roche had to develop a strategy to achieve them. The
first step was to involve and generate enthusiasm among all its employees. There was limited integration
between the various sites. So the company established project teams that encouraged cross-divisional cooperation.
Representatives on the project teams contributed different types of expertise, such as research and development,
production and marketing. They were responsible for involving all the staff from their division, collecting ideas
and input and representing these at the project team meetings. Progress was then reported back to the various
sites. The Dome project encouraged staff to work together and helped to build a sense of corporate, rather than
divisional or site, identity.
As a result of this input, Roche has provided equipment, advice and expertise on many of the topics included in
the Body Zone to supplement its financial sponsorship.
Site briefings, videos, competitions, team challenge events, balloon races and coach trips to the Dome raised
awareness of the project internally. Project members also produced a countdown 2000 newsletter, wrote articles
for the Roche Leader (the in-house magazine) and used the company intranet and notice boards to inform all
employees about its progress.
Roche’s involvement in the Dome has brought a number of business benefits. Working in close partnership with
‘Boots’ the Chemists and other suppliers in the development of the Body Zone created a network of valuable
contacts. As a direct result of meetings about the development of the project, the company has developed new
communication routes into ‘Boots’ the Chemists for its diagnostic products and vitamins.
Roche has made important contacts with key customers and opinion leaders. Although such benefits may not be
immediately obvious, they will become more apparent in the long-term.
The involvement in the Millennium Dome project has been a public relations triumph for Roche. To
communicate with the different groups involved in the project, it had to examine all forms of formal and
informal communication. For example, it was necessary to produce a corporate hospitality package and a media
dossier about Roche’s activities to send to guests visiting the Dome. Many of Roche’s most important customers
were given a sneak preview of the Dome in late 1999. Being a main sponsor of the Dome enabled Roche to
invite and brief some key figures in the media world. The hospitality suites in the Dome were used extensively
during the year-long celebrations to entertain customers, journalists and employees.
It is often difficult to quantify the benefits derived from sponsorship. To assess the impact of the project on
public and media awareness, Roche will use statistics on corporate recognition, collected before the involvement
in the Dome project, as a baseline for future comparisons. Such benefits are likely to be long-term, but early
results are very encouraging. Roche is well on the way to becoming a truly household name.
END OF PART B
10
Part C : Applied Theory (20 Points)
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8.
This part consists of questions with serial number 8 - 9.
Answer all questions.
Points are indicated against each question.
Do not spend more than 25 -30 minutes on Part C.
Abhiram is awaiting for a promotion for which his boss’s recommendation has a lot of weightage. He is
therefore trying to do all the possible things to please his boss. How would you describe the power being
exerted by Abhiram’s boss?
(10 points) < Answer >
9.
It is normally believed that asking questions is an easy job than answering them. Do you think interviewer
should also do some homework or it is only the duty of the interviewee, in a job interview?
(10 points) < Answer >
END OF PART C
END OF QUESTION PAPER
11
Suggested Answers
Organizational Behaviour and HRM (MB251) : July 2003
Part A : Basic Concepts
1.
Answer : (a)
< TOP >
Reason : One might conclude that Saba has Type A personality. Personality is the sum total of ways in
which an individual reacts and interacts with others. Individuals are said to belong to Type A
personality when they are aggressively involved in chronic, incessant struggle to achieve more in
less time, even against opposition from other people.
(b) Individual of Type B personality are obsessed with the idea of acquiring too many things or
participating in too many things in a short span of time. They do not want to reveal their
accomplishments or achievements unless the situation demands.
(c) We cannot conclude that ‘Saba’ has no personality.
(d) We cannot conclude that Saba is a good team player.
(e) We cannot conclude that Saba is a autocratic leader.
2.
Answer : (b)
< TOP >
Reason : It is an example of ‘Similarity error’. Appraisers make a similarity error when they evaluate
other people in the same way that they perceive themselves. Appraisers have certain perceptions
about themselves, which they tend to project on to the appraisers.
(a) It is not an example of low differentiation error.
(c) Halo error occurs when the appraiser’s personal opinion of the employee affects the
measures of performance.
(d) Leniency error occurs when employees are rated higher than their performance justifies.
1. (e) Recency error occurs when the manager uses subjective performance measures,
ratings are strongly affected by the most recent actions of the employee.
3.
Answer : (d)
< TOP >
Reason : The process of interaction among employees is known as ‘Employee relations’. It is the area of
management, which integrates people in to the work situation in such a way that motivates them
to work together productively and with economic psychological and social satisfaction.
(a) Organizational culture is a common perception held by the organization’s members; a
system of shared meaning
(b) Organizational development is a collection of planned change interventions, built on
humanistic democratic values that seek to improve organizational effectiveness and
employee well being.
2. (c ) Employee involvement is a participative process that uses the entire capacity of
employees and is designed to encourage increased commitment to the organization’s
success
4.
Answer : (c)
< TOP >
Reason : Anand and Arun belong to ‘Craft union’. These kind of unions are composed of workers who
possess the same or related skills or perform essentially the same or related tasks or functions.
These unions are generally craft-conscious rather than class conscious and derive their strength
from the strategic position of their workers.
(a) Industrial unions are composed of semi-skilled and unskilled worker of one industry.
(b) General unions cover various industries and laborers having different types of skills
(d) Anarchist unions are those unions that try to destroy the existing economic system by
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5.
6.
revolutionary means
(e) Predatory union does not subscribe to any ideology.
Answer : (c)
< TOP >
Reason : ‘Human relations skills’ are important for HR professionals to communicate, negotiate and assist
team development in workplace. It refers to motivating people in organizational settings to
develop teamwork that accomplishes individual as well as organizational goals effectively
(a) Decision-making refers to choosing between alternatives and is a part of every management
function.
(b) The ability to apply specialized knowledge or expertise is referred to as technical skills
3. (d) The ability to understand and think in terms of models and frameworks, and derive
broad relationships with goals is known as conceptual skills.
Answer : (d)
< TOP >
Reason : A company-sponsored program that provides employees with counseling and other kinds of
professional help to deal with stressors such as alcohol and drug abuse, and family problems is
known as ‘Employment assistance program’. These programs are designed to help employees
solve their personal problems, family and emotional problems. Such problems, if left unchecked,
affect individual job performance and result in loss of valuable work time.
(a)
(b)
(c )
(e)
7.
It is not a Sabbatical program.
It is not a reduction of uncertainty program
It is not a Non-functional strategy program
It is a program designed and implemented by management that includes safety measures for
the employees
Answer : (b)
< TOP >
Reason : A manager who always seeks to employ married males because of belief that they are more
stable employees, is likely to be ‘Stereotyping’. The term Stereotyping refers to the tendency of
generalizing another person as belonging to a single category. It is a means of simplifying a
complex world.
(a) Machiavellianism is the degree to which an individual is pragmatic, maintains, emotional
distance and believes that ends can justify means.
(c) Halo effect is drawing a general impression about an individual based on a single
characteristic.
(d) Cognitive dissonance is referred as any incompatibility between two or more attitudes or
between behavior and attitudes
(e) Cohesiveness is the degree to which group members are attracted towards each other and
are motivated to stay in the group.
8.
Answer : (d)
< TOP >
Reason : ‘Formalization’ is the degree to which jobs within the organization are standardized. In a highly
formalized job, the person who performs it has little discretion over what is to be done, when it is
to be done, or how it should be done.
(a) Specialization is a specific work and is referred as ‘Work Specialization’.
(b) Departmentalization is the subdividing of activities and responsibilities areas in to units
with in organization.
4. (c) Chain of command is the unbroken line of authority that ultimately links each
individual with the top organizational position through a managerial position at each
successive layer in between.
5. (e) Division labor is a breakdown of a complex task in to components so that individuals
are responsible for a limited set of activities instead of the task as a whole.
9.
Answer : (a)
< TOP >
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Reason : Job design refers to the manipulation of the content of a job, the methods or functions used in
carrying out the job, and the relationships that exist among the jobs.
‘Social Information processing model’ approach to Job design is based on the idea that
information from other people and workers own past behavior influences workers perceptions of
and response to the design of their jobs.
(b) The Job characteristics model held that employees work hard when they are rewarded for
the work they do and when the work gives them satisfaction.
(c) Herzberg two factor theory casts new insights in to the content of work motivation.
(d) The human relations approach highlighted the need to design jobs that were interesting,
rewarding and allowed greater potential interaction among workers.
(e) The key idea of this approach was the ‘task idea’ that led to job specialization.
10. Answer : (c)
< TOP >
Reason : Stories describing the abilities of founders, breaking of rules, rags-to-riches successes, and
reductions in the workforce, relocation of employees, reactions to past mistakes, and
organizational coping go around in all organizations. Such stories anchor the present in the past
and provide explanations and legitimacy for current practices
(a) Core values are the primary or dominant values that are accepted through out the
organization.
(b) Rituals are those repetitive sequences of activities that describe and reinforce the values of
the organization.
(d) The layout of the company headquarters, the types of vehicles and aircraft provided to the
top executives are some of the examples of material symbols.
6. (e) Language is the basis for many organizations, and departments within the
organization, to identify members of a culture or subculture.
11. Answer : (c)
< TOP >
Reason : The decision making style that is concerned with the achievement of peers and subordinates and
characterizes decision makers who work well with others is termed as ‘Behavioral’
(a) The ability of a leader to analyze the problems and give solutions to that problems is
referred as ‘Analytical style’.
(b) The ability to understand and think in terms of models and frameworks, and derive broad
relationships with goals is known as ‘Conceptual style’.
(d) A directive leader is identified as person who involves letting subordinates know what is
expected of them, providing guidance about work methods, developing work schedules,
identifying work evaluation standards and indicting the basis for outcomes or rewards.
(e) The technical decision making style refers to the ability to apply specialized knowledge or
expertise.
12. Answer : (a)
< TOP >
Reason : Stress is a dynamic condition where in an individual is confronted with an opportunity,
constraint or demand related to the individual’s desire.
(b) Conflict occurs when two or more people or parties perceive an incompatibility of goals
and interdependence of activity.
(c ) Orientation is the introduction of new employee to an organization or to his work unit.
(d) Grievance is a dissatisfaction or feeling of injustice in connection with one’s employment
situation that is brought to the notice of the management
(e) Discipline is the force that prompts individuals or groups to observe the rules, regulations
and procedures, which are deemed to be necessary for effective functioning of an organization.
13. Answer : (c)
< TOP >
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Reason : Individuals make decisions by constructing simplified models that extract the essential features
from problems without capturing all their complexity. In Bounded rationality, once the problem
is identified, the search for criteria and alternatives begins,. The list of criteria and alternatives
are very exclusive these may be choices that are easy to find, highly visible, familiar and already
tried and true solutions
(a) Decisions that maximize given values in a situation are known as ‘Objective rationality’.
7. (b) Decisions that maximize the attainment relative to knowledge of the given subject are
known as ‘Subjective rationality’.
(d) Decisions in which an adjustment of means to ends are a conscious process are known as
‘Conscious rationality’.
8. (e) If the known adjustment of means to end has been deliberately sough by the individual
or the organization, that decision is ‘deliberately rational’.
14. Answer : (d)
< TOP >
Reason : Conflict is a process that begins when one party perceives that another party has negatively
affected or is about to negatively affect, something the first party cares about.
“Noise in the communication channel’ is not an example of a structural variable.
(a) The group size has a major say on the overall behavior of the group, though its effect
depends on what dependable variables one looks at.
(b) The styles adopted by the leaders are referred as ‘Leadership styles’.
(c) Reward system is the process of managing reward within an organization with the objective
of supporting the purpose of the organization most effectively.
15. Answer : (d)
< TOP >
Reason : ‘Cross training’ is the process in which team members understand and practice each other’s
skills so that members are prepared to step in and take another member’s place when the person
leaves the team.
(a) In Vestibule training, actual working conditions including the equipment the employee’s
use is simulated in a classroom
9. (b) Role playing is described as a method of human interaction involving realistic
behavior in imaginary situations
(c) Case exercise is an in-depth description of particular problems that employees’ faces in an
organization are presented in a case.
10. (e) In this method, the work environment is simulated by programming a computer to
imitate some of the realities of the job.
16. Answer : (c)
< TOP >
Reason : Span of control is the number of subordinates a manager directs. There is a limit to the number
of subordinates that a manager can control effectively. It is highly relevant to organization design
issues` as it determines the number of levels and managers an organization ought to have.
(a) Grouping of activities by functions performed is the most popular method of
departmentalization.
(b) The degree to which jobs within the organization are standardized is known as
Formalization.
(d) Matrix structure is a popular organizational design option. It is a combination of both
functional and product departmentalization.
(e) The key concept that forms the foundation for any bureaucracy is standardization.
17. Answer : (d)
< TOP >
Reason : Polycentrism is the view that managers in the host country know the best work approaches and
practices for running their operations.
(a) Individualism is described as a national culture attribute describing a loosely knit social
framework in which people emphasize only the care of themselves and their immediate
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family.
(b) Collectivism focuses on group, group values and harmony among its members.
(c) It becomes difficult to adapt to a different culture when people have a predisposition that
the conditions in heir country are the best.
(e) The prominent feature of all international operations is that they are conducted in a social
system different from the one in which the organization is based.
18. Answer : (a)
< TOP >
Reason : A cultural measure of the degree to which people tolerate risk and unconventional behavior is
referred as ‘Uncertainty avoidance’.
(b) Individualism is described as a national culture attribute describing a loosely knit social
framework in which people emphasize only the care of themselves and their immediate
family.
(c) Power distance is a custom that believes in strong and legitimate decision-making rights
that separate managers from employees
(d) Collectivism focuses on group, group values and harmony among its members.
19. Answer : (c)
< TOP >
Reason : An organizational structure that assigns specialists from different functional departments to work
on one or more projects being led by project is referred as ‘Matrix organizational structure’. The
ability to facilitate coordination is the major strength of a matrix structure. It is very crucial when
the organization has a multiplicity of complex and interdependent activities.
(a) A simple structure is characterized by low degree of departmentalization, wide spans of
control, centralized authority and very less formalization.
(b) The key concept that forms the foundation for any bureaucracy is standardization.
(d) The name Cross-functional implies functions of different fields or work areas.
20. Answer : (b)
< TOP >
Reason : The chain of command espoused by Fayol, Weber and Taylor is best described as a system
which ‘has an unbroken line of control from top management to the lowest levels with
clarification of reporting systems’.
21. Answer : (e)
< TOP >
Reason : Stress is a dynamic condition where an individual is confronted with an opportunity, constraint
or demand related to the individual’s desire.
‘Withholding information about the performance of individual employees is unlikely to reduce
the level of employee stress’.
22. Answer : (a)
< TOP >
Reason : Individuals who like solving new problems, dislike routine, jump to conclusions, and dislike
taking time for details and precision, can be described as ‘Intuitive’.
(b) Perceptive individuals organize and interpret their sensory impressions in order to give
meaning to their environment.
(c) Individuals who speak very less are referred as ‘Introverts’.
(d) Individuals vary in their willingness to take chances. The propensity to take up or avoid risk
influences the time that managers take to make a decision and the amount of information
required by them to make that decision.
(e) Individuals who speak much when compared to other are called as “Extraverts’. A
personality dimension describing some one who is sociable, talkative and assertive.
23. Answer : (c)
< TOP >
Reason : ‘Co-optation’ is a form of both manipulation as well as participation, where in the leaders
resisting the change are given important roles in the change decision. The leaders are not
consulted not for their advice but for their endorsement to the change decision.
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(a)
Manipulation involves distorting facts to make them appear more presentable, withholding
undesirable information and making employees accept a change by creating false rumors.
(b) Negotiation is the process in which two or more parties exchange goods or services an
attempt to agree upon the exchange rate for them
(d) Coercion implies direct threats or force upon the people showing resistance.
(e) Individuals find it difficult to resist a change decision in which they have actively participated.
24. Answer : (c)
< TOP >
Reason : High consistency between group and organizational goals combined with a low level of
cohesiveness will generally lead to ‘ moderate increase in productivity’.
11. (a) High consistency between groups and organizational groups combined with a low
level of cohesiveness will not lead to ‘A substantial decrease in productivity’.
(b) High consistency between groups and organizational groups combined with a low level of
cohesiveness will not lead to ‘A moderate decrease in productivity’.
(d) High consistency between groups and organizational groups combined with a low level of
cohesiveness will not lead to ‘A strong increase in productivity’.
(e) High consistency between groups and organizational groups combined with a low level of
cohesiveness will not lead to ‘ No significant change in productivity’.
25. Answer : (b)
< TOP >
Reason : In a workforce increasingly dominated by short-term employment, Providing opportunities for
training is most likely to motivate group of employees.
26. Answer : (e)
< TOP >
Reason : According to Vroom’s expectancy theory, an employee who lacks confidence in his or her ability
is likely to have poor motivation due to ‘Low expectancy’.
(a) Instrumentality relates first-level outcome, and second-level outcomes.
(b) Expectancy relates efforts to first-level outcome. Therefore expectancy in this theory is the
probability that a particular action or effort will lead to a particular first-level outcome.
(c) Instrumentality relates first-level outcome, and second-level outcomes.
(d) Valence represents the strength of an individual’s preference for a particular outcome.
27. Answer : (a)
< TOP >
Reason : Health Maintenance Organizations: HMO’s provide doctors and other medical facilities for
rendering treatment to employees. A company’s employee and their dependents use the HMO’s
service for any health- related problems. HMO’s benefit employees by offering services at a very
low cost.
(b) Preference Provider organizations allow employees to select doctors and hospitals from an
approved panel of doctors and hospitals
12. (c) Employee assistance program are designed to help employees solve their personal
problems, family and emotional problems.
13. (d) Some organizations set up consumer societies and supply all necessary goods to their
employees.
28. Answer : (d)
< TOP >
Reason : Providing appropriate incentives for professional employees is challenging because they are
‘already driven
29. Answer : (b)
< TOP >
Reason : A Manager utilizes ‘Career-oriented appraisals’ to match an employee’s strength and
weaknesses.
(a) A mentor is some one who offers informal career advice to the employees.
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14. (c) Job ranking is a form of job evaluation that subjectively ranks jobs according to their
overall worth to the organization.
(d) Job posting is used by managers to provide information about job openings to employees.
(e) Job rotation is an act of placing an employee on different jobs for different periods of time.
30. Answer : (a)
< TOP >
Reason : A manager born and raised in Argentina employed by an organization located in Australia and
assigned to manage an operation in Indonesia would be considered as a(n), ‘TCN’ i.e. Third
Country National.
(b) PCN denotes Parent Country Nationals.
(c ) HCN denotes Host Country Nationals.
Part B : Problems (MB251)
1.
2.
An organizational structure is the one that defines how jobs are formally divided, grouped and coordinated.
Structures do have a bearing on employee attitudes and behavior, since such division, grouping or
coordination directly affects them.
Six elements need to be addressed by managers when they design their organization’s structure. They are
I.
Work specialization: The essence of this concept is to break down a particular job in to various small
steps and assign each step to a separate individual.
II. Departmentalization: Division of jobs is achieved through work specialization. Such divided jobs need
to be grouped together so that there is better coordination among common tasks.
III. Chain of command: From top levels of the organization to the lowest echelon, the chain of command
is an unbroken line of authority that clarifies who reports to whom.
IV. Span of control: There is a limit to the number of subordinates that a manager can control effectively.
V. Centralization/Decentralization: The degree to which decision-making is concentrated at a single
point is referred to as Centralization.
VI. Formalization: The degree to which jobs within the organization are standardized is known as
formalization.
< TOP >
Decentralization refers to systematic delegation of authority in the organization. It is a vertical coordination
method that addresses the extent to which power and authority are delegated to lower levels.
Advantages:
I.
It reduces the burden of top management so that it can focus more attention on strategic management.
II. It facilitates growth and diversification in the organization
III. It is good philosophy to motivate managers
IV. It encourages development of managers by providing them opportunities to shoulder more
responsibility
V. It emphasizes on horizontal growth of the organization thereby reducing the number of management
levels and increasing the span of management.
Disadvantages:
I.
If not followed properly, decentralization will create chaos in the organization in the absence of proper
control.
II. It tends to increase costs by making most units autonomous for facilities.
III. In decentralized structure, there is more need for good managers. Unless these managers are available,
decentralization cannot be effective.
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IV. Decentralization requires high degree of self-motivation and self-control because of autonomy given
to managers.
Measures:
I.
Centralized Top Policy and Control: Though it appears to be contradictory, for decentralization to
become effective, there should be appropriate centralization particularly in the context of policy
formulation.
II. Appreciation of concept of Decentralization: A major problem before decentralization and its
working is that managers do not really understand and appreciate the philosophy of decentralization
and therefore, they are not ready to practice it as organizational philosophy.
III. Development of Managers: The success of decentralization depends on the quality of managers who
hold various positions.
IV. Competition among units: Since various units of decentralized organization work independently,
there should be proper competition among these units.
< TOP >
3.
4.
‘Diversity’ can be defined as “ the situation that exists when members of a group or organization differ
from each other in terms of age, gender, ethnicity, and/or education”.
‘Cummins’ should adopt the following steps to manage diversity effectively in their organization:
Family-Friendly Workplaces: A Family-friendly workplace refers to an umbrella of work or family
programs such as on-site day care, child-care and elder care referrals, flexible work timings, compressed
workweeks, job sharing, telecommunicating, and temporary part-time employment, and relocation
assistance for the family members of employees.
Management in order to improve employee morale and productivity and reduce employee absenteeism
creates family-friendly workplace. These kinds of workplace make it easier for employers to recruit and
retain first class workers.
Diversity training: Training is significant aspect of most diversity programs. These programs help in
increasing awareness and studying stereotypes. Employees, through training increase cross-cultural
understating and learn to value differences between individuals and congruent stereotypes.
Mentoring programs: A Mentor generally is a senior employee who guides and supports a less
experienced employee. Mentoring includes coaching, counseling and sponsoring. As a coach Mentors
encourage and guide the protégé to acquire and enhance their skills. As a counsellor, they help to build up
their self-confidence.
< TOP >
The Diversity Initiative started by ‘Cummins’ aims to:
a. Have access to people with the best talents available.
b. Develop an employment profile that reflects and matches the different customer needs satisfied by the
organization around the world.
c. Build an organization that demonstrates visible diversity at different levels. Employing people from
different ethnic origins and women-including appointments at senior levels of management
d. Create an organization in harassment free working environment, committed to removing any form of
bias or prejudice against gender, age, religion, or ethnic origin.
e.
Bring together people from different cultures and backgrounds. They could then draw on different
perspectives that enable them to achieve more effective solutions and work with higher levels of
creativity.
< TOP >
5.
The Diversity Initiative helped ‘Cummins’ to become more competitive .It has significantly changed the
methods of recruitment. The Diversity Initiative has ensured that, in seeking a wider and more talented
selection of recruits. It has helped to breakdown the stereotypical view of Cummins as a ‘traditional’
manufacturing organization. Diversity Initiative has helped Cummins recruit managers with multi-cultural
skills and competencies that attract, develop, utilize and retain the best people and the development of a
19
flexible and open inclusive environment based upon merit.
< TOP >
6.
Communications is the process by which information is exchanged between individuals through a common
system of symbols, signs and behaviors. Communication is a dynamic, interpersonal process that involves
behavior exchanges.
To communicate with the different groups involved in the project, Roche had to examine all forms of
Formal and Informal communications. It has produced a corporate hospitality
Package and a media dossier about it’s activities to send to guess visiting the Dome. Many of the Roche’s
most important customers were given a sneak preview of Dome in late 1999. Being a main sponsor of the
Dome enabled Roche to invite and brief some key figures in the media world. The hospitality suites in the
Dome were used extensively during the year- long celebrations to entertain customers, journalists and
employees.
< TOP >
7.
Communication is very vital for the functioning of organizations. Without good communication, the flow
of information, both internally and externally, cannot take place and supervisors will not be able to give
instructions and monitor the activities of their employees. There would be no coordination of work, and
cooperation also becomes impossible because a person is not able to communicate his needs or feelings to
others. Hence we can rightly say that every act of communication also makes employees isolated and
mentally sick, leading to several psychosomatic diseases. Good communication is inevitable in the
performance of various management functions, namely, planning organizing, directing and controlling.
Good communication leads to increased job satisfaction and better employee performance. Good
communication is important since it gives people a better understanding of their jobs and increases their
involvement.
Open communication is significant in getting the support of employees. It is believed that open
communication is generally better than restricted communication. Employees if aware of the problems and
threats faced by organization, will extend their cooperation in overcoming such threats.
< TOP >
Part C: Applied Theory
8.
The kind of power that Abhiram is being subjected to is the reward power. Reward power is based on the
belief by B that A has the ability to grant rewards. This is based on the person’s ability to control and
administer the resources to reward others. Potential rewards that are valued in an organizational context
include pay increases promotions, favorable work assignments, new equipment, praise, feedback and
recognition. Reward power gives managers the power to administer positive reinforces. In terms of
Vroom’s expectancy theory, this means that the person has the power to provide positive valences and that
the other person perceives this ability.
Reward power is opposite to coercive power. People comply with the wishes and directives of managers
because this brings about positive benefits; therefore managers will have power over their employees if
they can give rewards that are considered valuable by them. To understand this source of power, it is
important to note that recipient holds the key. However, sometimes the managers may not really have any
rewards to dispense. But as long as subordinates perceive them to be capable of giving rewards, they are
said to possess reward power.
< TOP >
9.
Selection of an employee is vital function of the HR department and it is also crucial for the success of the
organization. So, in Job interview, the interviewer should leave nothing to chance but prepare well in
advance to take control of the interview and select the right candidate. The Interview may be considered to
have five phases, namely, Preparation, Setting, Conduct and Close of interview and finally the evaluation
of the candidate. In each phase the interviewer has to take an active role to make the interview, a success.
Preparation: Advance preparation for all types of interviews is very important. It helps the interviewer to
focus on the important aspects and to remember and absorb many impressions and facts during the
interview.
20
Setting: The setting for an interview, which has both physical and mental aspects, deserves special
emphasis.
Conduct of Interview: It is important the following factors are taken in to consideration in the conduct of
an interview:
I.
The Interviewer should possess and demonstrate a basic liking and respect for people
II. Questions should be open-ended to encourage the interviewee to talk.
III. The Interviewer should listen attentively.
IV. Avoid hostile questions.
The closing of Interview: It is an important as its commencement. It should be without awkwardness and
embarrassment.
i. The interviewer should make some over sign to indicate the end of the interview.
ii. The interview should be given some type of answer of indication of future action.
Evaluation: Once the interviewee leaves the interview room the interviewer must immediately undertake
the task of evaluating the candidates while details are fresh in the mind. Based on his observations, rating
and performance of the interviewee, the interviewer should evaluate the individual and some decision must
be arrived at regarding his employment.
< TOP >
< TOP OF THE DOCUMENT >
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