2021 question paper
HUMAN RESOURCE DEVELOPMENT AND ORGANIZATIONAL BEHAVIOUR
18 questions
Q1a. What is job analysis?20212m
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Worked SolutionJob Analysis [2 Marks]
Definition (Edwin Flippo):
Job Analysis is the process of studying and collecting detailed information relating to the operations and responsibilities of a specific job including tasks, duties, skills, knowledge and abilities required to perform it successfully.Components / Products:
- Job Description: What the job is - title, duties, responsibilities, working conditions, reporting relationship.
- Job Specification: What the job requires in the person - qualifications, experience, skills, physical/mental traits.
Techniques: Questionnaire, Interview, Observation, Diary, Critical Incident, Work Sampling.
Uses: Basis for Recruitment, Selection, Training, Performance Appraisal, Job Evaluation & Wage Fixation.
In short: Job Analysis = Process; Job Description + Job Specification = Output.
Word Count: ~110 words.
Q1b. List any four roles of a personnel manager?20212m
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Worked SolutionFour Roles of a Personnel Manager [2 Marks]
(Personnel Manager = HR Manager)
- Advisory Role: Advises line managers on HR policies, labour laws, manpower planning and grievance handling - staff expert.
- Administrative / Executive Role: Handles recruitment, selection, payroll, record-keeping, HRIS and legal compliance.
- Welfare Role: Ensures employee welfare - safety, health, canteen, recreation, counselling, work-life balance.
- Developmental Role: Organizes training, career planning, performance management and OD interventions for employee growth.
Other acceptable roles (any four): Mediator/Integrating Role (between management & workers), Counsellor, Motivator, Liaison/Spokesperson, Change Agent.
Also remembered as: Policy Maker, Liaison, Housekeeper, Counselor, Fire-fighter (Mamoria).
Q1c. Name any two methods of external recruitment.20212m
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Worked SolutionTwo Methods of External Recruitment [2 Marks]
Any two:
- Advertisement (Media): Vacancies advertised in newspapers, journals, company website, job portals (Naukri, LinkedIn). Widest reach, attracts large pool.
- Employment Exchange / Agencies: Government-run exchanges and private consultants (e.g., ABC Consultants) that register job seekers and employers.
Other valid options (write any two):
- Campus Recruitment: Visiting colleges/IITs/IIMs for fresh graduates - e.g., TCS at engineering campuses.
- Walk-ins / Gate Hiring: Direct application at factory gate for unskilled labour.
- E-Recruitment: Online portals, social media hiring.
- Labour Contractors: For casual/seasonal labour.
- Recommendation of Existing Employees (considered external in some books as source is outside but via referral).
Benefit: Fresh talent, wider choice. Demerit: Costly, time-consuming, demotivates existing staff.
Q1d. Define induction.20212m
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Worked SolutionInduction (Orientation) [2 Marks]
Definition:
Induction is the process of introducing and familiarizing a newly appointed employee with the organization, its policies, rules, colleagues, work environment and job requirements so as to make him comfortable and productive quickly.Also called: Orientation or Socialization.
Objectives:
- Reduce anxiety of newcomer ("Welcome & belong")
- Provide information about company history, culture, rules, benefits
- Introduce to superiors, peers, subordinates and workplace layout
- Clarify job role, expectations and reporting relationship
Types: Formal (structured program, handbook, lecture) vs Informal (by supervisor/colleagues).
Selection gets the person to the gate; Induction welcomes him inside.
Word Count: ~105 words. Example: Infosys 3-month orientation at Mysore campus.
Q1e. What is collective bargaining?20212m
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Worked SolutionCollective Bargaining [2 Marks]
Definition (Edwin Flippo / ILO):
Collective Bargaining is the process of negotiation between employer/management and workers' representatives (Trade Union) for determining terms and conditions of employment and regulating employer-employee relations.Features:
- Collective: Group action, not individual - union represents workers.
- Bargaining: Give-and-take - proposals, discussions, compromise to reach collective agreement.
- Covers: Wages, hours, leave, bonus, job security, promotion, health & safety.
- Legal Basis in India: Industrial Disputes Act 1947, Trade Unions Act 1926.
Types: Distributive (economic issues), Integrative (productivity), Composite (both).
Importance: Maintains industrial harmony, ensures participative decision-making, prevents strikes/lockouts.
Example: Annual wage negotiation between Maruti management and workers' union.
Word Count: ~115 words.
Q1f. What do you understand by off-the-job training methods?20212m
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Worked SolutionOff-the-Job Training Methods [2 Marks]
Definition:
Off-the-job training is training provided to employees away from the actual work premises / outside the immediate job, usually in a classroom or simulated environment, to impart theoretical knowledge and broader skills.Key Methods:
- Lectures / Classroom: Instructor-led theory
- Conferences & Seminars: Group discussion on specific topics
- Case Study: Analysing real business problems
- Role Playing & Sensitivity Training: Behavioural learning
- Vestibule Training: Simulated workshop with same machines
- Management Games & Simulation
Features:
- Provided by experts, uninterrupted learning
- Suitable for managerial & technical concepts
- Costly and may lack direct real-job transfer
Contrast: On-the-job = learns while doing (coaching, job rotation, apprenticeship) at workplace.
Word Count: ~115 words.
Q1g. Define trade union.20212m
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Worked SolutionTrade Union - Definition (2 Marks)
As per Trade Union Act, 1926 and OB/HRM view:
A Trade Union is a voluntary, organized association of workers (or employers) formed collectively to protect and promote common interests of its members through collective action, collective bargaining with management, regarding wages, working conditions, job security, welfare and grievances.
Key elements:
- Continuous association, legal entity
- Common economic & occupational interests
- Aim - improve economic, social status, bargaining power vs. employer
- Examples: AITUC, INTUC, BMS in India
Objectives: Fair wages, better conditions, participation in management, social welfare, unity.
Q1h. List any four challenges for organizational behaviour.20212m
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Worked SolutionChallenges for Organisational Behaviour (2 Marks - Any 4)
- Workforce Diversity: Managing differences in age, gender, religion, caste, culture, ability - need for inclusivity, bias-free policies.
- Globalisation: Managing across borders, cross-cultural conflicts, expatriate management, virtual teams.
- Ethical Behaviour & Value Conflicts: Emphasis on ethics, CSR, managing whistle-blowing, ethical dilemmas.
- Technological Change & Information Overload: Automation, AI, remote work, work-life balance issues.
- Other valid points: Quality & Productivity improvement, Empowerment & Participation, Downsizing & Job Insecurity, Improving People Skills, Stimulating Innovation/Creativity, Coping with Temporariness, Managing Change.
Exam Tip: Write 4 points with 1 line each; mention Robbins’ major challenges.
Q1i. What is the importance of job satisfaction in organizations?20212m
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Worked SolutionImportance of Job Satisfaction in Organizations (2 Marks)
Definition: Positive attitude/emotional state resulting from appraisal of job experiences.
Importance:
- Productivity & Performance: Satisfied employees are more productive, higher quality & customer service.
- Low Absenteeism & Turnover: Reduces quits, absenteeism, recruitment costs; improves retention.
- Organizational Citizenship (OCB): Leads to helpful, beyond-duty behaviour, cooperation.
- Low Counter-productive Behaviour: Less grievances, strikes, sabotage, stress/burnout.
- Employee Health & Morale: Improves mental health, loyalty, team cohesion.
Without satisfaction → dissatisfaction → poor performance, high costs. Hence manager must monitor via surveys and improve through job enrichment, fair rewards, supportive supervision.
Q1j. What do you understand by organizational politics?20212m
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Worked SolutionOrganizational Politics - Definition (2 Marks)
Organizational Politics refers to intentional actions/ behaviour by individuals/groups to acquire, enhance and use power to secure self-interests or influence decision-making beyond formal authority, often at the cost of organizational goals.
Pfeffer: “Activities taken within org to acquire, develop and use power and other resources to obtain preferred outcomes in situation where there is uncertainty or dissensus.”
Nature:
- Informal, non-sanctioned behaviour
- Based on power struggles, scarcity of resources, ambiguous goals
- Self-interest vs. organizational interest
- May be functional (career advancement) or dysfunctional (conflict, favouritism)
Examples: Lobbying for promotion, bypassing chain, coalition formation, withholding information.
Occurs where formal rules inadequate → unavoidable in organizations; needs to be managed ethically.
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Q2. Explain the methods of training need assessment. Describe any three methods of executive training.202114m
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Worked SolutionQ2. Training Need Assessment (TNA) & Executive Training Methods (14 Marks)
A. Training Need Assessment (TNA) - 7 Marks
Definition: Systematic process to identify gap between required and actual KSA (knowledge/skill/attitude) and determine who needs training, what training and when.
TNA = Identification of performance gap → cause is lack of skill → training is solution.
Levels / Methods of TNA:
Goldstein & Ford's 3-Level Analysis + other techniques:
1. Organisational Analysis:
- Analyses organizational goals, strategy, resources, environment.
- Methods: Organisational objectives/ SWOT, manpower planning, climate surveys, productivity indices, grievance/accident rates.
- Q: Where is training needed in organization?
2. Task/ Job Analysis (Operational):
- Analyses job content - what tasks, skills needed (via Job Description).
- Methods: Job analysis, performance standards, observation, questionnaire to supervisors.
- Q: What skills needed to perform job?
3. Individual / Person Analysis:
- Analyses individual performance deficiency.
- Methods: Performance appraisal, skill tests, interviews, attitude surveys, assessment centers, 360-degree feedback.
- Q: Who needs training & what kind?
Additional TNA Techniques:
- Observation, Interviews (with managers/employees), Questionnaires/Surveys, Focus Groups, Performance Appraisal Records, HR Records (absenteeism, quality), Critical Incident Method.
Process Steps: Determine Desired Performance → Measure Actual Performance → Identify Gap → Rank needs by priority/cost-benefit → Decide training intervention.
Diagram: Org Level → Task Level → Individual Level (funnel).
B. Executive Training / Management Development Methods (7 Marks)
Three methods (any 3 detailed):
1. Case Study Method:
- Real/simulated business problem given to executives to analyse, discuss and decide.
- Develops analytical, decision-making, diagnostic skills.
- Example: Harvard Case Method. Group discussion under trainer.
2. Role Playing:
- Executive enacts role (e.g., manager, union leader) in simulated situation.
- Develops interpersonal skill, empathy, leadership, conflict handling.
- Followed by feedback/debrief.
3. In-Basket Exercise:
- Executive given basket of memos, mails, reports (as on manager's desk) and asked to prioritise, decide, delegate within time.
- Tests situational judgement, planning, decision under pressure.
Other valid methods to mention (for extra marks):
- Business Games / Management Simulation: Computer-based simulators requiring strategic decisions.
- Sensitivity Training (T-Group): Small group interaction to increase self-awareness & group dynamics.
- Seminars/Workshops, Lectures, Coaching/Mentoring, Job Rotation.
Conclusion: TNA is diagnostic first step without which training wastes; executive methods focus on conceptual, human & decision-making skills for managerial roles, often off-the-job but experiential.
Q3. Today human resource management has taken a central role in organizations. Why?202114m
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Worked SolutionWhy Human Resource Management has taken a Central Role in Organizations
Introduction:
HRM has shifted from peripheral personnel administration (record-keeping, payroll) to strategic partner. In knowledge economy, human capital is the only sustainable competitive advantage - technology, capital can be imitated, people cannot. 14M answer.1. Changing Nature of Business Environment:
- Globalization: MNCs, cross-cultural teams, expatriate management, global talent war requires strategic HR.
- Technological Change & Automation: Reskilling, redeployment, managing human-machine collaboration.
- Intense Competition: Need for innovation, quality, speed - all driven by people.
2. Human Capital as Strategic Asset (Resource Based View):
People are VRIN - Valuable, Rare, Inimitable, Non-substitutable. HRM creates value through:- Attracting and retaining talent
- Building core competencies
- Creating intellectual capital
Barney's RBV proves firms win through people, not just products.
3. Shift from Traditional to Strategic HRM (Dave Ulrich Model):
HR now plays 4 roles: Strategic Partner, Change Agent, Employee Champion, Administrative Expert.- Aligns HR strategy with business strategy (HR Planning, succession planning)
- Example: At Tata Consultancy Services, HR strategy directly drives business expansion into new geographies.
4. Centrality in Organizational Effectiveness:
- Talent Management: Recruitment, selection, training & development ensure right person at right job. In IT/startup era, war for talent is decisive.
- Performance Management: Goal setting (MBO), KPI, 360-degree appraisal link individual performance to organizational goals.
- Retention & Engagement: Cost of turnover is 1.5-2x salary. HR's engagement, work-life balance, rewards reduce attrition.
5. Knowledge Economy & Innovation:
Value creation depends on creativity, not manual labour. HR fosters:- Learning organization (Senge), continuous training, L&D
- Empowerment, suggestion schemes, innovation culture
- Example: Google's 20% time, HR policies enabling innovation.
6. Managing Workforce Diversity & Demographics:
Diverse age (Gen Z, Millennials), gender, culture, differently-abled. HR manages diversity for creativity and inclusion, prevents discrimination, ensures legal compliance.7. Change Management:
Mergers, restructuring, digital transformation create resistance. HR acts as change agent - communication, OD interventions, counseling, managing transition.8. Legal & Ethical Imperatives:
Labour laws (Industrial Disputes Act, Factories Act), POSH, Equal Opportunity, ESG & CSR. HR ensures compliance and ethical employment, avoiding litigation and brand damage.9. Employee Well-being & Industrial Relations:
From traditional IR (conflict) to employee relations, HR maintains harmonious relations, handles grievances, collective bargaining, ensures health, safety, mental well-being - critical post-COVID.10. Data-Driven HR (HR Analytics & AI):
HR uses analytics for workforce planning, predictive attrition, performance forecasting - making HR a decision-science at board level.Conclusion:
HRM is central because organizations are made of people and strategy is executed through people. In VUCA world, only firms that manage human resources strategically - attracting, developing, motivating and retaining talent - survive. Hence HRM has moved from support function to centre of organizational strategy and boardroom.Diagram: Evolution - Personnel Management -> HRM -> Strategic HRM (SHRM) -> Human Capital Management.
Q4. List and explain various steps involved in employee selection.202114m
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Worked SolutionSteps Involved in Employee Selection Process (14M)
Definition: Selection is process of choosing most suitable candidate from pool of applicants (negative process - rejection). Systematic 8-step procedure:
Step 1. Preliminary Screening / Initial Interview:
- Brief interview to eliminate obviously unqualified (age, qualification, experience).
- Scrutinize application blank. Saves time/cost for next stages.
- E.g., BPO checks English fluency quickly.
Step 2. Application Blank / Form:
- Detailed standardized form collecting biodata, education, experience, references, salary expected.
- Provides base for interview, background check. Weighted scoring.
Step 3. Selection Tests:
Objective measure of KSA. Types:- Aptitude Test (potential to learn - e.g., GMAT)
- Intelligence Test (IQ)
- Personality Test (Big Five, MBTI)
- Interest Test, Achievement Test, Situational Judgement Test
- Need validity & reliability, avoid discrimination.
- Eg: Software firm gives coding test.
Step 4. Employment Interview:
- Most crucial. Types: Structured (standard questions), Unstructured, Stress, Panel, Group.
- Assesses communication, confidence, cultural fit. Should be planned, with STAR technique.
- Errors to avoid: Halo, leniency.
Step 5. Reference & Background Check:
- Verify information via previous employers, professors, references, criminal/police verification, document verification.
- Important for integrity especially banking, security roles. Eg: HDFC Bank background via third party.
Step 6. Medical / Physical Examination:
- Check health, fitness to perform job, avoid contagious diseases, reduce absenteeism & compensation claims.
- E.g., fitness test for police, eye test for pilots/drivers.
Step 7. Selection Decision & Job Offer:
- HR manager, line manager together evaluate scores of tests/interview, make ranking, approve by top management.
- Issue Appointment Letter with designation, salary, terms, joining date. Candidate acceptance.
Step 8. Placement & Induction (Follow-up):
- Placement: Assigning selected candidate to appropriate job (right person right job) - may be probationary.
- Induction/Orientation: Introduce to organization - culture, policies, colleagues, tour, handbook. Reduces anxiety, turnover.
- Evaluation after probation confirms fit or terminates.
Additional Features:
- Barriers: Validity of tests, bias, stress. Must ensure legal compliance (Equal Opportunity).
- Modern Trends: AI-based resume screening, online psychometric tests, assessment centres, Gamified selection (Google).
Example Flow: For Management Trainee at HUL: Screening → Online aptitude + case test → Group Discussion → Two Panel Interviews → Reference check → Medical → Offer → 1-year rotation induction.
Conclusion: Scientific selection reduces cost of wrong hire (cost = 3x salary), ensures meritocracy, person-job fit, organizational performance. Each step acts as filter; skipping steps risks misfit. Selection is not end but start of employment relationship through proper induction.
Q5. Explain the meaning of performance appraisal. Discuss any four modern methods of performance appraisal.202114m
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Worked SolutionPerformance Appraisal - Meaning & Modern Methods (14M)
Meaning: Performance Appraisal is systematic, periodic evaluation of an employee's job performance and potential against pre-set standards, to make decisions on promotion, training, compensation and development.
Definitions: Flippo - assessment of employee's worth to organization. Distinguished from HR planning / job enrichment.
Objectives: Administrative (promotion, increments), Developmental (feedback, coaching, career path, training need identification), Informational (HR inventory).
Modern Methods of Performance Appraisal (4 in detail + others):
1. Behaviourally Anchored Rating Scale (BARS):
- Combines Critical Incident + Graphic Rating Scale.
- Process: Identify critical incidents → cluster into performance dimensions (e.g., Interpersonal skills) → anchor each scale point (1-7) with specific behaviour.
- Example for "Customer Service": 7 = "Handles customer complaint proactively, follows up"; 1 = "Argues with customer, ignores".
- Advantages: Behaviour-based, less halo/subjectivity, clear feedback. Limitation: Time-consuming, expensive, job-specific.
2. 360-Degree Feedback (Multi-Rater):
- Employee rated by circle: superior, peers, subordinates, customers, self. Anonymous questionnaire on competencies.
- Advantages: Comprehensive, reduces single-rater bias, improves self-awareness. Used by Infosys, Wipro.
- Limitations: Costly, need trained facilitator, may cause conflict if not anonymous.
3. Management by Objectives (MBO - Drucker):
- Manager and subordinate jointly set SMART goals for period (e.g., increase sales 15% in 6 months), periodic review, final evaluation based on goal achievement.
- Steps: Goal setting → Action plan → Self-control → Periodic review → Appraisal.
- Advantages: Objective, participative, links individual to organizational goals, high motivation.
- Limitations: Not suitable for all jobs (routine), time-consuming, overemphasis on quantifiable.
4. Assessment Centre Method:
- Employees undergo battery of simulations over 2-3 days: in-basket exercise, leaderless group discussion, business game, role play, psychometric tests; assessed by multiple trained assessors.
- Originally for promotion to managerial cadre (e.g., Army SSB, Tata Administrative Services).
- Advantages: Excellent predictor of managerial potential, holistic, reduces bias. Limitation: Very costly, requires expertise.
Other Modern Methods:
- Human Resource Accounting: Value employee in monetary terms (cost or contribution).
- Psychological Appraisals: In-depth interviews, tests to gauge future potential.
- Potential Appraisal + Performance Appraisal Parallel: Infosys uses relative ranking + potential.
Traditional vs Modern: Traditional (Ranking, Paired Comparison, Forced Distribution, Graphic Rating Scale) are trait-based, past-oriented, subjective; Modern are behaviour/results based, future-oriented, participative.
Best Practice: Combine methods - e.g., MBO for results + BARS for behaviour + 360 for feedback (as in modern IT companies).
Conclusion: Modern methods overcome errors of halo, leniency, recency by being objective, behavioural and multi-source. Choice depends on purpose, cost, organization size. Effective appraisal is not fault-finding but development tool.
Q6. How has the concept of industrial relations changed in recent times? Discuss the major players in industrial relations in India.202114m
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Worked SolutionIndustrial Relations: Recent Changes & Major Players in India (14M)
Concept: As in Q122.
How Concept Changed in Recent Times:
Traditional IR (Pre-1991):
- Adversarial, conflict-oriented (strike/lockout), bipartite + government intervention, strong militant unions, protective labour laws, focus on wages/job security.
- Dunlop system, judicial adjudication heavy.
Emerging / New IR (Post-Liberalization, Globalization, Post-COVID & 2020 Labour Codes):
From Industrial Relations to Employee Relations/Human Relations: Emphasis shifts from conflict settlement to collaboration, commitment, engagement. Term "workman" → "employee".
Decline of Traditional Unions, Rise of Enterprise Unions & Non-Union Voice: Central trade unions weakening (membership fall), enterprise-level, professional associations, direct participation (town halls, skip-level meetings, ESOP) growing.
Flexibility & Contractualisation: Growth of contract labour, gig workers (Zomato, Uber), fixed-term employment (2020 Code). Traditional job security replaced by employability.
Informalization & Service Sector Dominance: IR now covers IT, BPO, services where unions rare; focus on work-life, harassment, performance.
Technology & Remote Work: Digital IR, virtual negotiations, algorithmic management, AI monitoring create new IR issues (right to disconnect).
HRM Integration: IR handled by HR as part of integrated HRM (high commitment model - training, appraisal, empowerment reduce need for adversarial IR).
Legal Reform: 44 Central laws → 4 Labour Codes (Wages 2019, IR 2020, Social Security 2020, OSH 2020). Easier hire-fire flexibility for firms >300, recognition of negotiating union, fixed-term concept.
From Government as Umpire to Facilitator: Less conciliation, more tripartite consultation, self-certification, ease of doing business.
Global Standards (ILO Decent Work, ESG): Emphasis on decent wages, safety, gender equality, supply chain labour standards.
Major Players in Industrial Relations in India:
1. Government (State):
- Frames labour policy, enacts laws (Ministry of Labour & Employment), enforces via Labour Commissioner.
- Conciliator, adjudicator (Labour Courts/Tribunals), tripartite bodies (Indian Labour Conference).
- After reforms, increasingly facilitator for investment.
2. Employers & Employers' Associations:
- Individual employer (Tata Steel management) and associations: AIOE (All India Organisation of Employers), FICCI, CII, SCOPE.
- Represent employer interests in bargaining, policy lobbying, maintain discipline.
3. Trade Unions & Federations:
- Workers' collective voice. Central Trade Union Organizations (CTUO): INTUC, AITUC, HMS, CITU, BMS, SEWA etc. (12 recognized). Plant-level unions (Tata Workers Union).
- Bargain collectively, raise grievances, political role.
4. International Labour Organization (ILO):
- Tripartite UN agency (government-employer-worker, est. 1919). Sets conventions (87 Freedom of Association, 98 Collective Bargaining), provides technical assistance, influences Indian labour standards. India founding member.
Other emerging players: HR professionals, NGOs, judiciary (SC judgements), consumers/media.
Tripartite System (Indian IR Model): Government + Employers + Unions interact to set rules (Dunlop). Ideal is cooperation (e.g., Tata Steel 3-party wage settlement).
Conclusion: IR in India transformed from militant adversarialism to collaborative, flexible, service-oriented employee relations driven by globalization, technology and labour code reforms. Success depends on harmony among 4 players, balancing flexibility for industry with security/dignity for workers (flexicurity) - ILO's core agenda.
Q7. Explain the evolution of organizational behaviour.202114m
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Worked SolutionEvolution of Organizational Behaviour (OB)
OB has evolved over a century from classical theories focusing on structure to modern focus on human behaviour. Its evolution can be traced in 6 major stages:
1. Classical Era (1900-1930) – Scientific Management and Bureaucracy
- F.W. Taylor – Scientific Management (1911): Time and motion study, standardization, differential piece-rate, scientific selection and training. Viewed worker as economic man, focused on efficiency but ignored human/social aspects.
- Henry Fayol – Administrative Theory (1916): 14 principles of management (division of work, unity of command, scalar chain), 5 functions (Planning, Organizing, Commanding, Coordinating, Controlling).
- Max Weber – Bureaucracy (1920s): Ideal rational organization based on hierarchy, rules, impersonality, division of labour. Provided structural framework.
Limitation: Mechanistic, ignored informal organization and psychology.
2. Neo-Classical / Human Relations Era (1930-1960)
- Hawthorne Studies – Elton Mayo (1927-32) at Western Electric: Illumination experiments, relay assembly, bank wiring tests. Discovery of Hawthorne Effect – productivity not just due to physical conditions but social factors, informal groups, attention, and feeling of importance.
- Human Relations Movement: Mayo, Roethlisberger, Dickson emphasized social man, informal organization, morale and leadership over formal structure.
- Contributions of Follett, Barnard: Mary Parker Follett stressed integration and group power; Chester Barnard viewed organization as cooperative social system.
3. Behavioural Science Era (1950-1970)
Interdisciplinary application of Psychology, Sociology, Psychology refined human relations:
- Maslow – Need Hierarchy (1954), McGregor – Theory X & Y (1960), Herzberg – Two-Factor Theory (1959), Vroom – Expectancy Theory, McClelland – Achievement Motivation.
- Focus on motivation, leadership styles, group dynamics, communication, decision making, job satisfaction.
- Studies by Likert (System 4), Argyris (Maturity-Immaturity), Blake & Mouton (Managerial Grid).
4. Modern Organizational Theory / Systems and Contingency Approach (1960-1980)
- Systems Approach: Katz & Kahn viewed organization as open system interacting with environment (inputs-throughputs-outputs-feedback).
- Contingency Approach: No one best way; structure and behaviour depend on situational factors like environment, technology, size (Lawrence & Lorsch, Woodward).
- Decision Theory: Herbert Simon – bounded rationality and satisficing.
5. Organizational Development and Culture Period (1980-2000)
- Focus on Organizational Development (OD): Planned change interventions – sensitivity training, survey feedback, team building.
- Organizational Culture: Peters & Waterman (In Search of Excellence), Deal & Kennedy emphasized strong culture for success.
- Total Quality Management (TQM), Reengineering, Learning Organization (Peter Senge).
6. Contemporary Period (2000 Onwards)
- Positive OB: Luthans – focus on strengths, optimism, resilience.
- Contemporary challenges: Globalization, workforce diversity, virtual teams, AI/automation, emotional intelligence, work-life balance, knowledge management, ethical behaviour, CSR.
- OB now is evidence-based, contingency-oriented, and focuses on Individual (personality, perception), Group (teams, conflict) and Organization (culture, change) levels.
Trend of Evolution:
Economic Man → Social Man → Self-Actualizing Man → Complex ManConclusion: Evolution shows shift from task-centered to people-centered to system-centered approach. OB today integrates classic structure with human insight and systems thinking to manage modern dynamic organizations.
Q8. What is process of negotiation? Explain.202114m
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Worked SolutionQ86 - Process of Negotiation (14 Marks)
1. Definition
Negotiation is a deliberate process where two or more interdependent parties with divergent interests try to reach a mutually acceptable agreement through discussion, compromise and exchange of proposals. It is the backbone of industrial relations, collective bargaining and conflict resolution.
According to Robbins, negotiation is “a process in which two or more parties exchange goods or services and attempt to agree upon the exchange rate for them.”
Features: Interdependence, perceived conflict, opportunity for joint decision, use of influence/communication.
2. Types (Context)
- Distributive (Win-Lose): Fixed pie, e.g., wage bargaining
- Integrative (Win-Win): Expand pie, problem-solving, e.g., productivity gain-sharing
3. Process of Negotiation - 5 Stage Model (Robbins & Judge)
Stage 1: Preparation and Planning
Most critical. 80% success decided here.
- Define nature of conflict: What is negotiable? What is not?
- Gather information: Data on opponent, market, legal constraints, precedents, BATNA (Best Alternative To Negotiated Agreement)
- Identify goals: List issues, prioritize - Must-have (wages), Nice-to-have (canteen), Tradeables. Decide target point, resistance point, and bargaining zone
- Understand opponent: Their goals, strategy, authority
- Formulate strategy & tactics: Team composition, location, agenda
Example: Union prepares data on cost of living, company profits, competitor wages; Management prepares data on ability to pay, productivity.
Stage 2: Definition of Ground Rules
- Who will negotiate? (Negotiating teams, chief negotiator)
- Where & when? (Neutral venue)
- Issues & constraints? (Agenda setting)
- Process rules? (Time limits, confidentiality, media handling, what if deadlock - mediation/arbitration)
- Initial proposals exchanged (often extreme opening offers - anchoring effect)
Stage 3: Clarification and Justification
- Both sides explain, amplify, justify their demands
- Exchange information, educate each other on underlying interests (not just positions)
- Use active listening, questioning. “Why do you need 20% hike?” → reveals interest: inflation, retention
- No arguing stage yet, only documentation and understanding
Stage 4: Bargaining and Problem Solving (Heart of Process)
- Give-and-take, concessions, trade-offs
- Strategies used:
- Concession pattern: Small gradual concessions signal firmness
- Logrolling: Trade issues of differing importance (“You get flexible hours, we get overtime flexibility”)
- Bridging, Expanding pie, Cost-cutting
- Emotions must be managed. Breaks, caucuses used.
- Use objective criteria: market rate, legal standards, expert opinion
- Deadlock handling: Adjourn, refer to sub-committee, use mediators
Stage 5: Closure and Implementation
- Formalization: Draft agreement, precise language, legal vetting. Memorandum of Settlement under Industrial Disputes Act, 1947 (Section 18)
- Ratification: Union executive + Management board approval
- Implementation & Monitoring: Timetables, committees, grievance procedure for violations
- Evaluation: Did we meet target? Relationship preserved? Learning for next round
4. Additional Framework - 3 Phase View (Planning → Negotiation → Implementation) with Negotiation Cycle: Offer → Counter-offer → Concession → Agreement
5. Factors Affecting Negotiation Effectiveness
- BATNA strength: Stronger alternative = more power
- Time pressure, Information asymmetry
- Personality: Trust, assertiveness, emotional intelligence
- Culture & Ethics: Ethical negotiation vs deceptive tactics (good cop/bad cop, nibbling)
- Power-dependence relationship
6. Skills for Effective Negotiator
Preparation, active listening, emotional control, creativity, ethical persuasion, ability to separate people from problem (Fisher & Ury’s Principled Negotiation).
7. Negotiation vs Collective Bargaining
Collective bargaining is a specific form of negotiation in IR between employer and trade union, institutionalized and legally governed; all collective bargaining is negotiation but not vice-versa.
Conclusion: Negotiation is not a one-time event but a continuous influence process. Successful negotiators spend ~70% time in preparation, focus on interests not positions, aim for integrative win-win, and formalize implementation. In HRD & IR, mastery of this process prevents strikes, lockouts and builds long-term trust.
Diagram for exam: Draw 5 boxes in sequence: Preparation → Ground Rules → Clarification → Bargaining → Closure → (Feedback loop to Preparation)
Q9. What is the importance of leadership in organizations? Describe any two behavioural theories of leadership.202114m
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View this question on its own page →What is the importance of leadership in organizations? Describe any two behavioural theories of leadership.
Worked SolutionQ87 - Importance of Leadership & Behavioural Theories (14 Marks)
Part A: Importance of Leadership in Organisations
1. Definition
Leadership is ability to influence, motivate and enable others to contribute towards organisational success. Koontz: “Influence, art of influencing people so that they will strive willingly towards achievement of group goals.” Not same as management (which is planning-organising-controlling); leadership is about doing the right things and creating change.
2. Why Leadership Matters – Functions
- Provides Direction & Vision: Transforms mission into clear goals, inspires followers (e.g., Narayana Murthy at Infosys)
- Motivates & Energises: Satisfies needs, builds morale, overcomes resistance to change (critical during mergers, digital transformation)
- Builds Team Cohesion & Culture: Shapes norms, trust, psychological safety (Google Project Aristotle)
- Facilitates Decision-Making & Innovation: Encourages risk-taking, participative problem solving
- Manages Conflict & Politics: Mediates competing interests, aligns individual-organisational goals
- Drives Performance & Change: Initiates adaptation (Lewin’s change model), handles crises (leadership during COVID – WFH transition)
- Develops People: Coaching, mentoring, succession creation
- Links External Environment: Represents organisation to stakeholders, negotiates resources
Without leadership, organisation is rudderless – good management without leadership yields order but no passion; leadership without management yields change without execution (Kotter).
Outcomes linked empirically: Higher productivity, lower turnover (turnover often due to “boss”), higher job satisfaction, OCB, and customer satisfaction. Gallup Q12 shows manager accounts for 70% variance in engagement.
Part B: Behavioural Theories of Leadership
While trait theories (Great Man, Stogdill) said leaders are born, behavioural theories (1940s-60s) argued leaders are made – effectiveness depends on what leaders do (behaviour can be trained). Two dimensions consistently found: Task/Production orientation vs People/Relationship orientation.
1. Ohio State Leadership Studies (Personnel Research Board, 1945 – Fleishman & Harris)
- Method: Factor analysis of 1800 behaviour descriptions (LBDQ questionnaire)
- Two independent dimensions:
- Initiating Structure (IS): Organising work, defining roles, scheduling, setting standards, push for production. Leader dictates what, how, when
- Consideration (C): Mutual trust, respect, warmth, concern for subordinates’ feelings, participation
- Finding: Dimensions are independent (high on both possible). High IS + High C generally gave high performance + satisfaction, but not universally – situational factors matter. Low-Low was worst.
- 4 quadrants: High C Low IS (country club), High IS Low C (task master), High-High (team leader), Low-Low (impoverished)
- Contribution: First empirical, trainable model; basis for later Grid.
2. University of Michigan Studies (Rensis Likert & Katz & Kahn, 1947)
- Method: Interviews in productive vs unproductive groups (clerical, insurance)
- Two styles (points on continuum):
- Employee-Oriented: Focus on people, their needs, development, participative, delegates. Cares for welfare.
- Production-Oriented (Job-Centred): Focus on technical task, tight supervision, pressure for output.
- Finding: Employee-oriented leaders associated with higher productivity + higher satisfaction. Production-oriented gave low productivity/satisfaction. Led to Likert’s System 4 (Participative) as ideal.
- Difference from Ohio: Michigan placed orientations on single continuum (you are either one), Ohio treated as independent – later resolved in favour of Ohio.
3. Managerial Grid / Leadership Grid (Blake & Mouton, 1964) – Extension (add for completeness, pick any two for exam, but Grid often counted)
- Axes: Concern for Production (1-9) vs Concern for People (1-9)
- Five styles:
- 9,1 Authority-Compliance (task) – high production, low people
- 1,9 Country Club – high people, low task
- 1,1 Impoverished – low both
- 5,5 Middle-of-the-Road – balance
- 9,9 Team Management – high both → ideal, based on trust, commitment, problem solving
4. Likert’s Four Systems (Scandinavian)
System 1 Exploitative Authoritative → System 2 Benevolent Authoritative → System 3 Consultative → System 4 Participative (most effective, high trust, group decision-making)
Comparison & Evaluation (Behavioural Theories Common Points)
- Emphasis on trainability → leadership development programs possible
- No one best style – High-High / 9,9 advocated but contingency theorists (Fiedler) later showed situation moderates
- Limitations: Ignored situational variables (task structure, follower maturity), leader-member relations; did not explain causality well
C. Integration – Importance + Behaviour
Modern HRD uses Ohio/Michigan insights to train leaders in both IS and Consideration: e.g., L&T leadership academy teaches task structuring (goal setting, MBO) + people skills (empathy, feedback). Behavioural theory shifted focus from who leaders are to what they do, democratising leadership.
Conclusion for 14M: Start with definition & 6-7 importance points → Explain any two behavioural theories in detail (Ohio + Michigan ideal, include dimensions, method, findings, diagram). Add Grid as value-add if space. Conclude that behavioural theories laid foundation for contingency and transformational theories and justify investment in leadership training.
Diagrams for exam: Ohio 2-axis matrix (IS vs C) with four quadrants; Michigan continuum line; Blake-Mouton 9x9 Grid.
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