ASSIGNMENT
Course Code :
MS
- 26
Course Title :
Organisational
Dynamics
Assignment Code :
MS-26/TMA/SEM
- II/2014
Coverage :
All
Blocks
Note: Attempt all
the questions and submit this assignment on or before 31st October, 2014 to the
coordinator of your study centre.
Q. 1. Explain the
stages of group development. Discuss with the group members of different groups
and prepare a document on the importance of communication for group
development.
Answer:Groups tend to
develop in stages. As you work with a support group, or with almost any group
of people who are working together toward a common cause, you'll be able to see
the progression. As a facilitator, knowing what to look for and how to manage
the challenges can have a big impact on how your group progresses. As with many things, the progress of a group
isn’t always neat and tidy. Sometimes groups will regress to an earlier stage
if there’s a major change, if a group member leaves or another is added, or for
various other reasons. Having said that, here’s an overview of how groups
typically develop and progress.
Stage 1: Forming- In the Forming
stage, personal relations are characterized by dependence. Group members rely
on safe, patterned behavior and look to the group leader for guidance and
direction. Group members have a desire for acceptance by the group and a need
to know that the group is safe. They set about gathering impressions and data
about the similarities and differences among them and forming preferences for
future subgrouping. Rules of behavior seem to be to keep things simple and to
avoid controversy. Serious topics and feelings are avoided. The major task
functions also concern orientation. Members attempt to become oriented to the
tasks as well as to one another. Discussion centers around defining the scope
of the task, how to approach it, and similar concerns. To grow from this stage
to the next, each member must relinquish the comfort of non-threatening topics
and risk the possibility of conflict.
Stage 2:Storming- The next stage,
which Tuckman calls Storming, is characterized by competition and conflict in
the personalrelations dimension an organization in the task-functions
dimension. As the group members attempt to organize for the task, conflict
inevitably results in their personal relations. Individuals have to bend and
mold their feelings, ideas, attitudes, and beliefs to suit the group
organization. Because of "fear of exposure" or "fear of
failure," there will be an increased desire for structural clarification
and commitment. Although conflicts may or may not surface as group issues, they
do exist. Questions will arise about who is going to be responsible for what,
what the rules are, what the reward system is, and what criteria for evaluation
are. These reflect conflicts over leadership, structure, power, and authority.
There may be wide swings in members’ behavior based on emerging issues of
competition and hostilities. Because of the discomfort generated during this
stage, some members may remain completely silent while others attempt to
dominate. In order to progress to the next stage, group members must move from
a "testing and proving" mentality to a problem-solving mentality. The
most important trait in helping groups to move on to the next stage seems to be
the ability to listen.
Stage 3: Norming- In Tuckman’s
Norming stage, interpersonal relations are characterized by cohesion. Group
members are engaged in active acknowledgment of all members’ contributions,
community building and maintenance, and solving of group issues. Members are
willing to change their preconceived ideas or opinions on the basis of facts
presented by other members, and they actively ask questions of one another.
Leadership is shared, and cliques dissolve. When members begin to know-and
identify with-one another, the level of trust in their personal relations
contributes to the development of group cohesion. It is during this stage of
development (assuming the group gets this far) that people begin to experience
a sense of group belonging and a feeling of relief as a result of resolving
interpersonal conflicts.
The major task
function of stage three is the data flow between group members: They share
feelings and ideas, solicit and give feedback to one another, and explore
actions related to the task. Creativity is high. If this stage of data flow and
cohesion is attained by the group members, their interactions are characterized
by openness and sharing of information on both a personal and task level. They
feel good about being part of an effective group. The major drawback of the
norming stage is that members may begin to fear the inevitable future breakup
of the group; they may resist change of any sort.
Stage
4:Performing-The Performing stage is not reached by all groups. If group
members are able to evolve to stage four, their capacity, range, and depth of
personal relations expand to true interdependence. In this stage, people can
work independently, in subgroups, or as a total unit with equal facility. Their
roles and authorities dynamically adjust to the changing needs of the group and
individuals. Stage four is marked by interdependence in personal relations and
problem solving in the realm of task functions. By now, the group should be
most productive. Individual members have become self-assuring, and the need for
group approval is past. Members are both highly task oriented and highly people
oriented. There is unity: group identity is complete, group morale is high, and
group loyalty is intense. The task function becomes genuine problem solving,
leading toward optimal solutions and optimum group development. There is
support for experimentation in solving problems and an emphasis on achievement.
The overall goal is productivity through problem solving and work.
Stage 5:
Adjourning-Tuckman’s final stage, Adjourning, involves the termination
of task behaviors and disengagement from relationships. A planned conclusion
usually includes recognition for participation and achievement and an
opportunity for members to say personal goodbyes. Concluding a group can create
some apprehension - in effect, a minor crisis. The termination of the group is
a regressive movement from giving up control to giving up inclusion in the
group. The most effective interventions in this stage are those that facilitate
task termination and the disengagement process.
An established
team experiences the same developmental issues as temporary project teams. When
membership changes, leaders often don’t recognize the impact on a previously
high-performing group until it becomes dysfunctional. The loss of a valued
member or the arrival of someone new can have an immediate effect, and a
sophisticated team may revert to stage one behavior when it was previously
performing at a much higher level.
However, when a
group has been performing successfully, it is easier to absorb changes and
bounce back quickly. With a solid base of shared work experience, everyone
involved already knows the feeling of operating efficiently and effectively.
Solid teams also typically exhibit high morale, and while a change may cause a
temporarily setback, a leader can quickly guide the group through the earlier
periods of development and return it to high performance levels.
Q. 2. What is
organizational Stress? Briefly describe the strategies to cope with stress at
individual and organizational levels. Cite few instances how you deal with organizational
stress that you have faced.
Answer:Stress is defined
in terms of its physical and physiological effects on a person, and can be a
mental, physical, or emotional strain. Stress occurs due to a demand that
exceeds the individual's coping ability, disrupting his or her psychological
equilibrium. Hence, in the workplace environment stress arises when the
employee perceives a situation to be too strenuous to handle, and is
threatening to his or her well-being.
Job stress
results from the interaction of the worker and the conditions of work. Views
differ on the importance of worker characteristics versus working conditions as
the primary cause of job stress. The differing viewpoints suggest different
ways to prevent stress at work. Differences in individual characteristics such
as personality and coping skills can be very important in predicting whether
certain job conditions will result in stress. In other words, what is stressful
for one person may not be a problem for someone else.
Stress-related
disorders encompass a broad array of conditions, including psychological
disorders (e.g., depression, anxiety, post-traumatic stress disorder) and other
types of emotional strain (e.g., dissatisfaction, fatigue, tension),
maladaptive behaviors (e.g., aggression, substance abuse), and cognitive
impairment (e.g., concentration and memory problems). Job stress is also
associated with various biological reactions that may ultimately lead to
compromised health, such as cardiovascular disease or in extreme cases death.
Mangers of
organizations have a dual perspective of stress. They need to be aware of their
own stress levels, as well as those of their subordinates. Most of the
literature focuses on ways of reducing stress. However, a more appropriate
approach might be to examine ways of optimizing stress. The challenge is to
minimize distress and maintain eustress. They point out that the conditions of
organizational life create a series of paradoxes that demonstrate the need for
balance and equilibrium.
1.
Uncertainty can lead to distress, but so can certainty or
overcontrol.
2.
Pressure can lead to distress, but so can limbo or lack of
contact.
3.
Responsibility can lead to distress, but so can lack of
responsibility or insignificance.
4.
Performance evaluation can lead to distress, but so can lack
of feedback concerning performance.
5.
Role ambiguity can lead to distress, but so can job
descriptions that constrain individuality.
The role of
management becomes one of maintaining an appropriate level of stress by providing
an optimal environment, and "by doing a good job in areas such as
performance planning, role analysis, work redesign/job enrichment, continuing
feedback, ecological considerations, and interpersonal skills training."
There are
essentially three strategies for dealing with stress in organizations
1) Treat the
symptoms,
2) Change the
person, and
3) Remove the cause
of the stress.
When a person is
already suffering from the effects of stress, the first priority is to treat
the symptoms. This includes both the identification of those suffering from
excessive stress, as well as providing health-care and psychological counseling
services. The second approach is to help individuals build stress management
skills to make them less vulnerable to its effects. Examples would be teaching
employees time management and relaxation techniques, or suggesting changes to
one's diet or exercise. The third approach is to eliminate or reduce the
environmental situation that is creating the stress. This would involve
reducing environmental stressors such as noise and pollution, or modifying
production schedules and work-loads.
Managers can take
active steps to minimize undesirable stress in themselves and their
subordinates. There could be five managerial actions that can be used to reduce
stress in workers.
1.
Clarifying task assignments, responsibility, authority, and
criteria for performance evaluation.
2.
Introducing consideration for people into one's leadership
style.
3.
Delegating more effectively and increasing individual
autonomy where the situation warrants it.
4.
Clarifying goals and decision criteria.
5.
Setting and enforcing policies for mandatory vacations and
reasonable working hours.
Establishing
one's priorities (i.e., value clarification) is an important step in the
reduction of stress. The demands of many managerial positions cause the neglect
of other areas of one's life, such as family, friends, recreation, and
religion. This neglect creates stress, which in turn affects job performance
and health. Value clarification is linked to time management, since we
generally allocate our time according to our priorities. By setting personal
priorities, managers and subordinates can reduce this source of stress. It is
typically the first step in any stress reduction program.
Many sources of
stress in organizations cannot be changed. These might include situations like
a prolonged recessionary period, new competitors, or an unanticipated crisis.
Organizational members generally have little control over these kinds of
stressors, and they can create extended periods of high-stress situations.
People who adjust to these stressors generally use a form of perceptual
adaptation, where they modify the way in which they perceive the situation.
Other sources of
stress in organizations can be changed. One particularly effective way for
managers to minimize employee stress is to clarify ambiguities, such as job
assignments and responsibilities. Employee stress is directly related to the
amount of uncertainty in their tasks, expectations, and roles. Managers can
encourage employees to search for more information when they are given
unfamiliar tasks, or when they are uncertain of their roles. Another way to
reduce employee stress is to incorporate time management techniques, as well as
setting realistic time schedules for the completion of projects.
There are many
other successful ways of dealing with stress. These include stress reduction
workshops, tranquilizers, biofeedback, meditation, self-hypnosis, and a variety
of other techniques designed to relax an individual. Programs that teach
tolerance for ambiguity often report positive effects. One of the most
promising is a health maintenance program that stresses the necessity of proper
diet, exercise and sleep. Social support
systems seem to be extremely effective in preventing or relieving the
deleterious effects of stress. Friends and family can provide a nurturing
environment that builds self-esteem, and makes one less susceptible to stress.
One study found that government white-collar workers who received support from
their supervisors, peers, and subordinates experienced fewer physical symptoms
of stress. Managers can create nurturing and supportive environments to help
minimize job-related stress.
Q. 3. Discuss the
need for Transformational Leaders and their importance citing examples.
Answer: Transformational
leadership is a type of leadership style that can inspire positive changes in
those who follow. Transformational leaders are generally energetic,
enthusiastic, and passionate. Not only are these leaders concerned and involved
in the process; they are also focused on helping every member of the group
succeed as well.
The Components of
Transformational Leadership
Bass also
suggested that there were four different components of transformational leadership.
1.
Intellectual Stimulation – Transformational leaders
not only challenge the status quo; they also encourage creativity among
followers. The leader encourages followers to explore new ways of doing things
and new opportunities to learn.
2.
Individualized Consideration –
Transformational leadership also involves offering support and encouragement to
individual followers. In order to foster supportive relationships,
transformational leaders keep lines of communication open so that followers
feel free to share ideas and so that leaders can offer direct recognition of
the unique contributions of each follower.
3.
Inspirational Motivation – Transformational leaders
have a clear vision that they are able to articulate to followers. These
leaders are also able to help followers experience the same passion and
motivation to fulfill these goals.
4.
Idealized Influence – The transformational
leader serve as a role model for followers. Because followers trust and respect
the leader, they emulate this individual and internalize his or her ideals.
Transformational
leaders are those who stimulate and inspire followers to both achieve
extraordinary outcomes and, in the process, develop their own leadership
capacity. Transformational leaders help followers grow and develop into leaders
by responding to individual followers' needs by empowering them and by aligning
the objectives and goals of the individual followers, the leader, the group,
and the larger organization.
A
transformational leader could be categorized as a visionary, a futurist or a
mechanism for change that assumes a proactive approach to management and a
transformational leader must possess high self-esteem, self-regard and
self-awareness to effectively transform organizations and employees.
Transformational leadership is based on four primary dynamics to influence the
behaviors and attitudes of others:
idealized influence (“charisma”), inspirational motivation, intellectual
stimulation, and individualized consideration. Transformational leaders place
an emphasis on team building, and empowering and developing potential in order
to reach long-term goals. Transformational
leader creates a collaborative learning environment, improves morale, embraces
accountability and conflict resolution, proactive towards change management,
ignites communication and supports empowerment.
These leaders also facilitate employees toward motivation and being
involved in the vision they produce.
Advantage of
transformational leadership is having highly motivated and satisfied employees.Transformational
leaders have a capability of infusing a higher degree of passion into
leadership by engaging employees and making them feel appreciated. Also, Transformational leaders could achieve
this passion by motivating and energizing employees to pursue goals, visions
and the empowering culture. If transformational leaders are passionate about
appreciating their employees this will provide them with opportunities to grow
and develop.
The
transformational leader can institute a vision that will move the organization
toward the future and an authentic caring environment and procure employee support
via idealized influence, inspirational motivation, intellectual stimulation and
individualized consideration.The use of transformational leadership is gaining
momentum because it is directly in contention with the outdated autocratic
unilateral style of leadership that has been forced on employees for many years.
Transformational leaders could lead their employees to a higher level of needs
that was outlined in Maslow’s hierarchy of needs. This was done by increasing
the employee’s level of knowledge in achieving valued conclusions, a vision and
the plan to accomplish these traits. It
also involved employees exceeding their own concerns for the sake of the team
or organization and raising their awareness to enhance themselves and what they
want to achieve.
There is a
certain type of transformational leader that many try to be, but few succeed.
This type of personal, the Great Founder, also requires a set of skills not
taught in the university. In fact, one of the most successful entrepreneurs
ever, Bill Gates, decided to drop out of Harvard and start a business called
Microsoft. One can almost image how that conversation went. The future
entrepreneur saying, “Mom, I want to drop out of school so that I can work on
an entrepreneurial venture for 80 hours a week, for now pay, that has a high
probability of failure.”But unlike most entrepreneurs, he never failed and
Microsoft was never unprofitable. For example, It was said that he took on on a
5% equity investment from a venture capitalist, not because the money was
needed, but because they wanted more expertise on the board. Below are three
short videos from a recent interview Bill Gates gave at Harvard.
Q. 4.Write an
essay on the social responsibilities of the organizations? Cite some best
practices of the social responsibilities of the organizations.
Answer: Being Socially
Responsible means that people and organisations must behave ethically and with
sensitivity toward social, cultural, economic and environmental issues.
Striving for social responsibility helps individuals, organisations and
governments have a positive impact on development, business and society with a
positive contribution to bottom-line results.In an age in which environmental
and social issues are top of mind for many consumers, businesses can no longer
exist in a bubble. Today's shoppers aren't just looking for the best price and
quality — they expect the companies they patronize to do good with their
dollars and make a positive impact on the world around them. To this end, many
organizations are now making social responsibility a top priority.
Corporate social
responsibility (CSR) refers to a business practice that involves participating
in initiatives that benefit society. As consumers' awareness about global
social issues continues to grow, so does the importance these customers place
on CSR when choosing where to shop.
Corporate social
responsibility (CSR) can be defined as the "economic, legal, ethical, and
discretionary expectations that society has of organizations at a given point
in time". The concept of corporate social responsibility means that
organizations have moral, ethical, and philanthropic responsibilities in
addition to their responsibilities to earn a fair return for investors and
comply with the law. A traditional view of the corporation suggests that its
primary, if not sole, responsibility is to its owners, or stockholders.
However, CSR requires organizations to adopt a broader view of its
responsibilities that includes not only stockholders, but many other
constituencies as well, including employees, suppliers, customers, the local
community, local, state, and federal governments, environmental groups, and
other special interest groups. Collectively, the various groups affected by the
actions of an organization are called "stakeholders." The stakeholder
concept is discussed more fully in a later section.
Corporate social
responsibility is related to, but not identical with, business ethics. While
CSR encompasses the economic, legal, ethical, and discretionary
responsibilities of organizations, business ethics usually focuses on the moral
judgments and behavior of individuals and groups within organizations. Thus,
the study of business ethics may be regarded as a component of the larger study
of corporate social responsibility.
The economic
responsibilities cited in the definition refer to society's expectation that
organizations will produce good and services that are needed and desired by
customers and sell those goods and services at a reasonable price.
Organizations are expected to be efficient, profitable, and to keep shareholder
interests in mind. The legal responsibilities relate to the expectation that
organizations will comply with the laws set down by society to govern
competition in the marketplace. Organizations have thousands of legal
responsibilities governing almost every aspect of their operations, including
consumer and product laws, environmental laws, and employment laws. The ethical
responsibilities concern societal expectations that go beyond the law, such as
the expectation that organizations will conduct their affairs in a fair and
just way. This means that organizations are expected to do more than just
comply with the law, but also make proactive efforts to anticipate and meet the
norms of society even if those norms are not formally enacted in law. Finally,
the discretionary responsibilities of corporations refer to society's
expectation that organizations be good citizens. This may involve such things
as philanthropic support of programs benefiting a community or the nation. It
may also involve donating employee expertise and time to worthy causes.
The
"competitive" argument recognizes the fact that addressing social
issues comes at a cost to business. To the extent that businesses internalize
the costs of socially responsible actions, they hurt their competitive position
relative to other businesses. This argument is particularly relevant in a
globally competitive environment if businesses in one country expend assets to
address social issues, but those in another country do not. According to
Carroll and Buchholtz, since CSR is increasingly becoming a global concern, the
differences in societal expectations around the world can be expected to lessen
in the coming years.
Finally, some
argue that those in business are ill-equipped to address social problems. This
"capability" argument suggests that business executives and managers
are typically well trained in the ways of finance, marketing, and operations
management, but not well versed in dealing with complex societal problems.
Thus, they do not have the knowledge or skills needed to deal with social
issues. This view suggests that corporate involvement in social issues may
actually make the situation worse. Part of the capability argument also
suggests that corporations can best serve societal interests by sticking to
what they do best, which is providing quality goods and services and selling
them at an affordable price to people who desire them.
An organization's
responsibilities are not limited to primary stakeholders. Although governmental
bodies and regulatory agencies do not usually have ownership stakes in
companies in free-market economies, they do play an active role in trying to
ensure that organizations accept and meet their responsibilities to primary
stakeholder groups. Organizations are accountable to these secondary
stakeholders. Organizations must also contend with civic and special interest
groups that purport to act on behalf of a wide variety of constituencies. Trade
associations and industry groups are also affected by an organization's actions
and its reputation. The media reports on and investigates the actions of many
companies, particularly large organizations, and most companies accept that
they must contend with and effectively "manage" their relationship
with the media. Finally, even an organization's competitors can be considered
secondary stakeholders, as they are obviously affected by organizational
actions. For example, one might argue that organizations have a social
responsibility to compete in the marketplace in a manner that is consistent
with the law and with the best practices of their industry, so that all
competitors will have a fair chance to succeed.
Q. 5.Explain the
meaning, importance and scope of strategic alliances in the present day
context. Illustrate indicating successful strategic alliances.
Answer:A strategic
alliance is a business arrangement in which two or more firms cooperate for
their mutual benefit. Firms may combine their efforts for a variety of purposes
including, but not limited to, sharing knowledge, expertise, and expenses as
well as to gain entry to new markets or to gain a competitive advantage in one.
Further, creation of a strategic alliance may turn actual or potential
competitors into partners working toward a common goal. Use of strategic
alliances has become a major tool for businesses that are internationalizing
their operations. Therefore, use of strategic alliances has expanded
dramatically over the past decade, and their use will continue to increase as
we enter the 21st century.
Strategic
alliances have three main characteristics,
1.
First, two or more firms partnering remain independent to the
formation of the alliance.
2.
Second, alliances perform the feature of ongoing mutual
interdependence, from which one party is vulnerable to the other party. Mutual
interdependence between party leads to shared control and management, which
contributes to the complexity of alliance management and often creates
significant administrative costs.
3.
Third, because the partners of alliances remain independent,
there is uncertainty as what one party expects the other party to do.
Two types of
knowledge accession partnerships: one pursuit of efficiency and productivity
based on complementary knowledge transfer and the other in pursuit of business
scope and product adaptability based on supplementary knowledge transfer. They
also give differentiations between complementary knowledge accession and
supplementary knowledge accession, and between complementary knowledge
acquisition and supplementary knowledge acquisition In contrast, knowledge
acquisition is underpinned by reverse knowledge flows from the alliance to the
partner firms. It also involves two types of knowledge transfer between partner
firms through the alliance: complementary knowledge acquisition to strengthen
individual partners’ core knowledge base and supplementary knowledge
acquisition to widen their knowledge range. The firms work together to make the
alliance, which called partnership enhancing knowledge transfer. Complementary
knowledge accession can help the alliance to strengthen its specialization and
core competence, while supplementary knowledge accession leads to a wider
knowledge base and business adaptation.
In general, a
strategic alliance that is not in the form of a joint venture is formed for a
limited purpose and is more narrow in its operations than the joint venture.
Non-joint venture strategic alliances tend to be less stable and last for
shorter terms than joint ventures. For example, United Airlines and British
Airlines formed a strategic alliance for the purpose of marketing their North
American and European routes in 1988. They did so because they were losing part
of their market share to Delta and American Airlines. Within a year, however,
the market shifted and they terminated the agreement.
It is important
to note that not all linkages between national or international businesses are
strategic alliances. Examples of arrangements that do not create strategic
alliances include licensing, exporting, franchising, and foreign direct
investment agreements. The Internet, advances in telecommunications, and
improved transportation systems have helped firms enter foreign markets and
have contributed to the globalization of business. Simultaneously, they have
facilitated the creation of strategic alliances. The decision to form a strategic alliance
depends on the needs and goals of the companies involved and on the laws of the
countries in which the companies are doing business.
The auto industry
is an example of an industry that relies heavily on strategic alliances. In the
1990s the auto industry began to rely heavily on joint venture strategic
alliances as it expanded its operations in Mexico and Latin America. Auto
makers began to demand more complete systems from their suppliers in Mexico,
and engineering responsibility was transferred from the auto makers to their
suppliers. In conjunction with this trend, auto makers are identifying Tier II
and Tier III "partners" for the Tier I supplier. They are encouraging
Tier I suppliers to enter joint ventures with other companies. And, in general,
the Tier I suppliers have the authority to select their own suppliers and joint
ventures partners except in areas such as safety and regulatory matters where
control is crucial.
Another major
benefit of a strategic alliance is that the firms involved can share risks. For
example, in the early 1990s, film manufacturers Kodak and Fuji joined with
camera manufacturers Nikon, Canon, and Minolta to create cameras and film for
an "Advanced Photo System." The strategic alliance (which was not
based on a strategic alliance) was terminated in 1996 after the film and camera
were developed. But it benefited the parties, because, by developing a common
product for the market, they shared expenses and they minimized the risks that
would have been involved if two or more of them had developed new, but
noncompatible, formats. They avoided the potential for the kinds of losses
suffered by the Sony Corp. when its Betamax format for videocassette recorders
was rejected by the public in favor of the VHS format.
Similarly, a
strategic alliance can help a firm gain a competitive advantage. For example, a
strategic alliance can be used to take advantage of a favorable brand image
that has been established by one of the partners. (Establishing a brand image
is a lengthy, expensive process.) It can also be used to gain shelf space for
products. For example, PepsiCo formed a joint venture with the Thomas J. Lipton
Co. to market readyto-drink teas throughout the United States. Lipton
contributed brand recognition in teas and manufacturing expertise. PepsiCo, as
the world's second-largest soft-drink manufacturer, shared its extensive
distribution network.
A strategic
alliance can ease entry into a foreign market. First, the local firm can
provide knowledge of markets, customer preferences, distribution networks, and
suppliers. This is especially true in Eastern Europe. Bestfoods is a
food-processing firm that sells products such as Mazola corn oil. Bestfoods has
formed strategic alliances with firms in several Eastern European countries
that, in turn, market its products. A strategic alliance between British
Airways and American Airlines was created in 1993 and designed to give the two
airlines increased access to North American and European markets, respectively.