CU-MBA-SEM-I-Leadership & Organizational Behavior -second draft

David C. McClelland has introduced his motivation theory based on an interpretation of the three essential forms of motivational needs. People were tested in three groups, which resulted in extensive analysis. Every department in a well-organized company represents a group of people working together to accomplish a common goal. There are three types of drivers: strength, association, and achievement.  Need for Achievement: People with a high need for accomplishment have a strong desire to succeed as well as a strong fear of failure. Employees continue to be challenged, and this is where the mild impact comes into play. They are impatient and want to work more and more to demonstrate their capacity and personal responsibility in completing their tasks.  Need for Affiliation: This need for affiliation is generally motivated by a desire to be loved and a desire to escape social rejection. They want to be worried with the fun atmosphere of social relationships and enjoy the feeling of familiarity that comes with it. They are polite and willing to assist others with their problems.  Need for Power: Employees with a high desire for influence are concerned about manipulating and controlling others. These people are generally good at conversing with others and are often argumentative. They are assertive, outspoken, and demanding, and they enjoy speaking in public. PROCESS THEORIES OF MOTIVATION Many ideas related to management were introduced by various thinkers, which aided managers in comprehending the principle of motivation. We'll go over a couple more motivation ideas in this segment. EQUITY THEORY OF MOTIVATION J. Stacy Adams proposed the equity hypothesis, which discussed the question of motivation, and one significant element in motivation is whether people think the incentive system is fair. It claims that people are more concerned with comparing their actions and rewards to those of others than with the reward they receive for their contributions. It takes into account things like effort, education, and experience. The following are the main features of the equity theory: Inputs by a person/output of a person = outcome by other person / inputs of person 251 CU IDOL SELF LEARNING MATERIAL (SLM)

The outcomes inputs relationship for one person should be balanced in contrast to the relationship for another. VROOM’S EXPECTANCY MODEL Victor H. Vroom suggested this idea, suggesting that people would be inspired to do something to accomplish an objective if they think the goal is worthwhile. People's motivation to do so, according to Vroom's theory, is dictated by the importance they put on the result of their effort. For example, an individual will wish to work hard in order to obtain a product in exchange for a monetary reward. Alternatively, the boss may be able to put in extra effort to meet the company's goals in the job he is doing. It's written like this: Motivation = Expectancy * Instrumentality * Valence  Where expectancy refers to the belief that putting in the effort will lead to the desired level of performance.  Instrumentality is the belief that if you perform well, you will be rewarded.  Valence refers to the worth of the individual who is being compensated, as well as other work-related outcomes.  If all of these are missing, motivation suffers as a result. THE PORTER AND LAWLER MODEL Lyman W. Porter and Edward E. Lawler III developed this model as a much more detailed model of motivation. Managers are the main consumers of this model. The amount of effort, i.e., the strength of motivation and energy expended, is determined by the importance of the reward and the amount of energy an individual requires, according to this model. It is defined as the probability of receiving a reward plus actual job result. As a consequence, success leads to both intrinsic and extrinsic rewards (such as a sense of achievement or self-actualization) (such as working conditions and status). As a result, satisfaction would have an effect on the real value of incentives. 14.7 MEANING & DEFINITION – STRESS Stress is a broad term that refers to a variety of psychologic (mental) and physiologic (physical) stresses that people face throughout their lives. \"Stress arises from an opportunity, demand, constraint, threat or challenge when the outcome of the event is important and uncertain.” – Stephen Robbins. 252 CU IDOL SELF LEARNING MATERIAL (SLM)

14.8 TYPES OF STRESS People are exposed to four different forms of stress. Eustress Eustress is a form of short-term stress that boosts your strength right away. Eustress occurs when there is a surge in physical activity, excitement, or imagination. Eustress is a type of positive stress that occurs when inspiration and motivation are required. Before a meet, a gymnast feels eustress. Distress Distress is a form of negative stress brought about by regular changes in one's routine. Distress causes a sense of unease and unfamiliarity. Distress can be divided into two categories. Acute stress is a form of stress that happens unexpectedly and lasts for a brief period of time. Chronic stress is described as a long-term stress that can last weeks, months, or even years. An individual who is continually moving or changing jobs may be distressed. Hyper stress When a person is forced to his or her means, hyper stress develops. Being overburdened or overworked causes hyper stress. Also, small events can trigger a strong emotional reaction in someone who is hyper stressed. A Wall Street trader is likely to be under a lot of pressure. Hypo stress The polar opposite of hyper stress is hypo stress. When a person is bored or unchallenged, hypo stress arises. Hypo stressed people are always nervous and uninspired. Hypo stress can occur in a factory worker who performs repetitive tasks. 14.9 CAUSES OF STRESS Career Concern: If an employee thinks he is falling behind in the corporate hierarchy, he may become stressed. He will become stressed if he thinks there are no opportunities for self- improvement. As a consequence, unmet career goals are a major source of stress. Role Ambiguity: Role ambiguity arises when a person is unsure of his or her responsibilities on the job. His roles and duties are vague. The employee is unaware of his duties. It causes doubt in the worker's mind and leads to stress. 253 CU IDOL SELF LEARNING MATERIAL (SLM)

Rotating Work Shifts: Working on Different Work Shifts: Individuals who work on different work shifts can experience stress. Employees could be forced to work the day shift for a few days and then the night shift for the rest of the week. This may cause difficulties in adapting to change schedules, and it may have an effect on the employee's personal as well as family life. Role Conflict: Role Conflict occurs when people have differing expectations of the individual who is performing a specific role. It may also happen if the job isn't up to par, or if the job requires a certain form of behaviour that goes against the person's moral principles. Occupational Demands: Some workers are more challenging than others. Stress levels are higher in jobs that require risk and threat. According to research, jobs that trigger stress necessitate continuous supervision of equipment and devices, uncomfortable physical environments, decision-making, and so on. Lack of Participation in Decision-making: Many experienced workers believe that management should consult them on issues that concern their careers. In fact, supervisors seldom consult with the affected employees prior to making a decision. This creates a sense of abandonment, which can contribute to stress. Work Overload: An unnecessary workload creates stress because it places a worker under a lot of strain. Work overload can manifest itself in two ways: Work overload in the qualitative sense refers to doing a job that is stressful or beyond the employee's capabilities. Quantitative job overload occurs when a large number of tasks are completed in a short period of time. Work Underload: In this situation, the employee is supposed to do very little or very simple work. Less work or employment of a repetitive and basic nature will result in boredom and monotony, which could lead to stress. Poor Working Conditions: Employees can be exposed to unsafe working conditions. Poor lighting and ventilation, unsanitary sanitation facilities, unnecessary noise and dust, poisonous gases and fumes, insufficient safety measures, and so on are all examples. All of these unfavourable circumstances trigger physiological and psychological imbalance in humans, resulting in stress. Lack of Group Cohesiveness: A group is defined by its cohesiveness, though the degree of this varies greatly. When there is a lack of unity among the members of a work group, people become stressed. Employees are stressed because of distrust, envy, recurrent quarrels, and other issues that arise in groups. 254 CU IDOL SELF LEARNING MATERIAL (SLM)

Interpersonal and Intergroup Conflict: These conflicts arise when two or more people or groups have differing views, behaviours, values, and beliefs. Group members can experience stress as a result of such conflicts. Organizational Changes: As changes occur, people must adjust to them, which can be stressful. When major or unusual changes occur, such as the transition or introduction of new technologies, stress levels rise. Lack of Social Support: People's ability to deal with the consequences of stress improves when they feel they have the friendship and support of others at work. Employees who do not have access to this form of social support are more overwhelmed. 14.10 SUMMARY  Motivation can be described as the process of inducing an individual to proceed on a course of action in order to achieve a goal.  The organization must ensure that its workers are highly motivated.  It is a person's inner drive to do something greater. The more a person is driven, the better his or her success and organisational relationships will be.  When you use external factors to inspire the staff to do what you want, you're using extrinsic motivation. Extrinsic motivators include pay increases, time off, bonus checks, and the possibility of losing the work. Some are optimistic, while some are not.  Intrinsic motivation is self-motivation. It's about having a personal motivation to solve a challenge, deliver high-quality work, or work with people you like and trust on a team. People who are intrinsically driven get a lot of satisfaction and pleasure out of what they do.  Motivational material theories concentrate on the needs (or collection of needs) that underpin human actions.  Esteem Needs are those that contribute to feelings of strength, reputation, rank, self- confidence, self-worth and respect from others, recognition, and important projects, among other things.  People with a high need for achievement have a strong desire to succeed as well as a strong fear of failure. 255 CU IDOL SELF LEARNING MATERIAL (SLM)

 When the result of an occurrence is critical and unpredictable, stress emerges from an opportunity, requirement, limitation, hazard, or challenge.  People are subjected to four different forms of stress. 14.11 KEYWORDS  Positive motivation: is based on rewards or benefits. A monetary or non-monetary incentive may be used.  Negative motivation: is founded on punishments, demands for explanations, threats, and terror, among other things. Fear of losing one's job or being passed over for a promotion.  Instrumentality: the assumption that good performance will be rewarded.  Valence: this refers to the worth of the individual who is being rewarded, as well as other work-related outcomes.  Role Ambiguity: This happens when a worker is unaware of his or her duties. 14.12 LEARNING ACTIVITY Can you determine at least three important take-away in this story from a plant manager in India who recently learned the skill of conducting Motivational Outlook Conversations? On his first day back after his training, the plant manager noticed a Technical Service Executive in the lab having a discussion with an external contractor. While she was wearing safety glasses, the contractor was not. The manager has a no tolerance policy as far as safety is concerned and his normal response would be to call the technician to his office and in his words, “read her the riot act.” According to the manager’s self-assessment: “I am known to blow a fuse (or two) when safety rules are flouted, however, I managed to keep my cool and decided to test my training.” He asked the technician to his office and could see that she was worried about his reaction. But instead of leading with his dismay and disappointment, he started by explaining that he had just received some training on motivation. He shared key concepts with her. He then asked her if she thought that the rule to wear safety glasses, even when there was no experiment on, was “stupid” as there is no danger to the eyes. Did she feel imposed upon to wear safety glasses as she had no choice? Since the technician was invited to have a discussion rather than “dressing down,” she was open and candid. She explained that she had a two-year old child and she was extremely concerned about lab safety as she wanted to reach home safe every evening. To the manager’s great surprise, she also shared that in certain 256 CU IDOL SELF LEARNING MATERIAL (SLM)

areas, she would prefer even more, not less, stringent safety measures. For example, she suggested that safety shoes should be required for lab experiments that are conducted at elevated temperatures. But when it came to wearing safety glasses when no experiments were being conducted, she just could not understand the rationale and did, indeed, resent the imposed rule. As a result, she didn’t feel compelled to enforce it, especially with an external contractor. The manager said he understood her feelings and went on to provide the rationale that the intention was that wearing glasses would become a force of habit, just like wearing a safety belt in the car. The manager said he saw the light dawn in her eyes. When it comes to your leadership and the motivation of those you lead, consider: 1. Self-regulation is a requirement if you want to lead differently—and better. Challenging your natural tendencies and patterns of behavior provides you with more options on how to lead. The new choices you make can be rewarding and productive for you, but especially for those you lead. As the plant manager reported: “I am sure if I had just followed my normal instincts and given her a piece of my mind, I would have been met with a hangdog look, profuse apologies, and a promise not to ever do this again. And it probably would have happened again. She would have gone away from my office with feelings of resentment and being imposed upon and I would also have had a disturbed day due to all the negative energy.” 2. Admit when you are trying something new. Be honest about expanding your leadership skills. People will appreciate your sincere and authentic efforts. Says the plant manager: “Suffice it to say that in my view, my little experiment was a success. I have since shared what I learned with many of my team members and plan to have more Motivational Outlook Conversations with them in the coming weeks.” 3. Remember that as a manager you cannot motivate anyone. What you can do is create an environment where an individual is more likely to be optimally motivated. Ask (and genuinely care about) how a person is feeling, help them recognize their own sense of well- being regarding a particular issue, and provide them with rationale without trying to “sell” it. Question: Comment on the motivational approach followed by the manager in approaching the problem. ___________________________________________________________________________ ___________________________________________________________________________ 14.13 UNIT END QUESTIONS A. Descriptive Questions 257 CU IDOL SELF LEARNING MATERIAL (SLM)

Short Questions 258 1. What is meant by Motivation? 2. Define Motivation. 3. List the importance of Motivation 4. Write short note on positive and negative Motivation 5. Classify the types of Motivation. 6. What is meant by Stress? 7. Define Stress. 8. List the types of Stress. Long Questions 1. Discuss the importance of Motivation 2. Explain the characteristics of Motivation 3. Enumerate the content theories of Motivation 4. Enumerate the process theories of Motivation 5. Classify the types of Stress 6. Describe the causes of Stress. B. Multiple choice Questions 1. The Need Hierarchy Theory was given by_____ a. Mc Gregor b. Vroom c. Maslow d. Carl Jung 2. Which is not a hygiene factor as per the Two Factor theory of motivation: a. Salary b. Work itself c. Job security d. Status 3. The hierarchy of needs in Maslow's motivation theory is_____ a. Physiological, Security, Social, Esteem, Self-actualization b. Physiological, Social, Esteem, Self-actualization, Security c. Social, Esteem, Self-actualization, Physiological, Security d. Physiological, Social, Security, Self-actualization, Esteem 4. In the Vroom's theory of motivation, \"v\" stands for____ CU IDOL SELF LEARNING MATERIAL (SLM)

a. Vroom b. Valence c. Velocity d. Ventilation 5. ERG theory of motivation was proposed by_____ a. Maslow b. Herzberg c. Alderfer d. Mc Gregor 6. Who propounded X and Y theory of motivation: a. Maslow b. F. Herzberg c. Alderfer d. Mc Gregor 7. Z theory is a Japanese approach of motivation developed by_____ a. Mc Clelland b. William Ouchi c. Alderfer d. Mc Gregor 8. Which of the following is/are not organizational factors causing stress? a. Task demand b. Role demand c. Role conflict d. Satisfaction Answers 1. (c) 2. (b) 3. (a) 4. (b) 5. (c) 6. (d) 7. (b) 8. (c) 14.14 REFERENCES Reference Books:  R1 Fred Luthans, “Organizational Behaviour”,7th Edition, MC Graw Hill, New York.  R2 Arnold and Feidman, “Organizational Behavior Graw Hill International, New york. 259 CU IDOL SELF LEARNING MATERIAL (SLM)

Textbooks:  T1 Stephen P. Robbins, “Organizational Behaviour”,18th Edition, Pearson Publishers, New York.  T2 L.M Prasad, “Organizational Behavior”, Sultan Chand Publications, New Delhi. 260 CU IDOL SELF LEARNING MATERIAL (SLM)

CASE STUDIES COOL PRODUCTS Mr. Vasudev is a general Manager of Cool Products, a company dealing in production and distribution of packed condiments in the state of Madhya Pradesh. The Co. was established in the year 2000 and has been performing well. Over the past five years the Co. Has introduced excellent production processes, quality control, established its own distribution network, and has been able to achieve good consumer response for the products they manufacture and distribute. The company is a market leader in the state of M.P. Seeing the success of the business, the management has decided to expand the same in the state of Rajasthan. They have identified Kota as the place for establishing production unit. The head of the unit will hold the rank of GM. The post is tenable by marketing or production manager since the job involves skill of productivity and marketing. The management has invited you to select a person to head Kota unit. The management have handed over to your profiles of two managers. Mr. Varun is production manager, and Mr Avinash is the marketing manager. Both are working with Cool Products since its inception. You as a consultant, required to select one of them. You do not have personal knowledge about them and have to take the decision based of their write-ups only. The write up of the managers are as under. Mr. Varun Tyagi Mr Varun is a mechanical engineer passed out from MACT Bhopal (now MANIT). He has about 10 years of service in food preservation industry. Prior to this appointment he was working with ‘Pare Masala’ a famous condiment manufacturer of Pune. Varun is hard working, sincere, honest and a dependable engineer. He is foresighted, technically sound and can work independently under stress and strain. He had been able to handle employee grievances in the present organization successfully to the satisfaction of employees and management has been critical about the decision he had taken on their behalf. He enjoys good rapport in the Industry and has been consultant to couple of industries in the state of MP and Maharashtra. He is straight forward and goes by the rule of law when in difficulty. He has a pleasant personality and workers fall back on him when in difficulty. Varsha-his wife is a nursing graduate and works in one of the private nursing homes. Families of employees, very frequently consult her and she therefore enjoys personal influence over the families of ‘Cool Products’. Mr Varun has been able to complete his targets of production every year and has been contributory factor for the growth of the Co. Mr. Avinash Mr. Avinash Kale belongs to Nagpur and comes from farmers family. His father was a poor man and taught his only son with a great difficulty. Avinash has done MBA from IMS Indore in the year 1996. His performance in academics has been excellent. He stood first in IMS 261 CU IDOL SELF LEARNING MATERIAL (SLM)

among the marketing boys that year. Mr Avinash is very calculative and thinks ten times before taking any decision. He evaluates the pros and cons of the issue at hand before proceeding further. He is very professional and keeps his sales team on the tender hooks and ensures monthly sales at any costs. He is hard task master as it relates to his job and can bend either way if situation so demands. He is very obedient and keeps the tag of management move, their daily schedule and any important event that is likely to take place. People in Cool Products say that Avinash knows everything in the organization before it is formally announced. He is considered to be a management man. He implements instructions of the management in letter and spirit. He maintains distance from workers and is not interested beyond the task he is supposed to do. But the task he does well and therefore he is liked by higher ups. One may say he is a task-oriented leader. He is a smooth sailor, a diehard salesman, visionary, opportunist, a soft-spoken executive who never hurts anyone in his dealings, a tight rope walker. He has good communication skills. He has been recently married to a lady who is employed as Assistant Sale Tax Officer in Bhopal. She belongs to state provincial services cadre. She also has a bright career as she is a topper in her batch. Questions: 1 Read the case carefully and carryout analysis. In the light of various theories, you have studied, what type of leadership style Mr. Varun Possesses. 2 What type of leadership style Mr. Avinash has. What is the strength of his personality? 3 As a consultant would you like to meet them before you take a decision, if so why. 4 Who is your Choice as a GM of Cool Products, Kota? MR. ALOK BANARJEE Mr. Alok Banerjee is the Chief Executive of a medium- sized pharmaceutical firm in Calcutta. He holds a Ph D in Pharmacy. However, he has not been involved in research and development of new products for two decades. Though turnover is not a problem for the company, Mr. Banerjee and his senior colleagues noticed that the workers on hourly basis are not working up to their full potential. It is well known fact that they filled their days with unnecessary and unproductive activities and worked only for the sake of a pay cheque. In the recent past the situation has become quite alarming as the organization began to crumble under the weight of uneconomical effort. The situation demanded immediate managerial attention and prompt remedial measures. Mr. Banerjee knew very well that the only way to progress and prosper is to motivate workers to peak performance through various incentive plans. One fine morning, Mr. Banerjee contacted the Personnel Manager and enquired: “What is the problem with the workers on hourly basis? The wage bill shows that we pay them the highest in the industry. Our working conditions are fine. Our fringe benefits are excellent. Still these 262 CU IDOL SELF LEARNING MATERIAL (SLM)

workers are not motivated. What do they require really?” The Personnel Manager gave the following reply: “I have already informed you a number of times, that money, working conditions and benefits are not enough. Other things are equally important. One of workers in that group recently gave me a clue as to why more and more workers are joining the bandwagon of ‘non-performers’. He felt bad that hard work and efficiency go un- noticed and un-rewarded in our organization. Our promotion and benefit plans are tied to length of service. Even the lazy workers, accordingly, enjoy all the benefits in the organization, which, infect according to workers, should go only to those who work hard.” Mr. Banerjee then wanted the Personnel Manager to look into the problem more closely and find out a solution to the problem of workers on hourly basis. Questions 1. Explain the motivational problem in this case by relating to Herzberg’s theory. 2. What would be your response to Banerjee’s statement, if you were the Personnel Manager of the Company? 3. If you were the manager, how would you motivate the employees so that they work better. Group behaviour Bal Chandra belongs to an economically backward family. He is the only educated member of his family. With much difficulty he could complete his matriculation, earning the credit of first matriculate in the family. His approach and behaviour can be seen as subjected to his economic handicap. Though he has a little inferiority complex and is a little introvert, he is hardworking. At the age of 22 he has joined a public sector organization as a junior clerk. While in service, he has completed intermediate, B.A. and M.A. He has then been promoted to the post of a senior clerk. Being ambitious, he has expected to get a better promotion. Hence, he worked hard. He took a management diploma also. All the four unions in the organization have asked him to join their unions, which he did not take heed. Hence all the union leaders are unhappy with him, while his colleagues have a jealousy. He has been sincere and hard working. Though he has not joined any of the unions, he has tried to keep moderate relations with all of his colleagues. However, the union activists and some of his co-workers have kept some sort of grudge and whispered against Mr. Bal Chandra. Considering the hardworking nature and additional qualifications, Bal Chandra has been promoted to a junior executive position. But as soon as he took charge the union leaders have protested against the promotion. They have interpreted it as an incentive for not joining the union. As a result of their strong protest, the promotion order is cancelled within a week. It was a great blow to Bal Chandra. Earlier he was working with the Research & Development Dept., which was according to his liking. But after being reverted, he has been placed as a 263 CU IDOL SELF LEARNING MATERIAL (SLM)

senior clerk in the Accounts department, where his supervisor has been one of his strongest critics. Moreover, he did not like accounting work; and he could not get job satisfaction in the new position. His adversaries have rejoiced, while he lost interest. He started showing disinterest in the work, and has become irregular in attendance. Gradually, he become disgruntled and moody, and started absenting frequently. Accounts section supervisor has not waited to call for explanations of Bal Chandra a number of times, which adversely affected his morale. He lost hopes and applied for causal leave for three days, he left the office without waiting for the sanction of the casual leave. He did not care to report back for duty even after three days. The Accounts section supervisor and other union leaders have promptly approached the personnel manager on the 15th day of his absence with a detailed note of the case and a recommendation from the Accounts Departmental head to serve a show cause notice on Bal Chandra, to conduct a departmental enquiry and to finally remove him from service. The union leaders have persuaded the Personnel Manager to promptly act on the recommendation of the Accounts Dept. Head. Some of Bal Chandra’s friends have informally reported the matter to his family, which is perturbed too much because Bal Chandra is the sole bread-winner of the family. A detailed analysis of the line of events throws light on group behaviour, interaction of individual and group behaviour, morale and job satisfaction of Bal Chandra in the context of the line of events, group dynamics, conflict between individual goal and group goal, lack of cohesion and its reasons, etc. Questions: 1. Is there anything wrong with Bal Chandra? Which are the various groups with which Bal Chandra is associated? Can we remark that the behaviour and approach of the various groups have been correct? 2. What would be the appropriate action on the part of the personnel manager in the particular situation? 3. Is it possible to motivate Bal Chandra and to improve morale, cohesiveness, and job satisfaction in the existing situation? GHANDI MEDICAL CENTRE Ghandi Medical University Centre is engaged in full time teaching and medical research for a medical college, dental college, nursing college and other health related professions. It is attached to university which enrols approximately 2,000 students. It has about 800 beds in medical, surgical and psychiatric wings. It is funded by state government. It is widely recognized as top institution in the provision of medical services in the state. However, the 264 CU IDOL SELF LEARNING MATERIAL (SLM)

medical centre faced consistent financial problems, especially the teaching is unable to break- even. The state government has brought Dr. Rao, previously Director of a large private hospital by offering lucrative salary and perks. Lured by an excellent salary, favourable climate and the opportunity to test his abilities, Dr. Rao accepted the post of Director of the center. In the post of Director, Dr. Rao holds control of administration of the teaching, hospital and the college of health-related professions. He is accountable for both its management and its budget. While Dr. Rao enjoys free hand in the internal affairs of the university, all long-range plans and budgets are approved by state legislature and university. The medical center is expected to obtain approval for major programs from both the university and state it is subject to their rules, regulations and priorities. While the state favours expenditure on health care, the university prefers a budget structure supporting teaching and research. This being the external intricacies, Dr. Rao found that the teaching and health care personnel directly reporting to him have conflicting priorities. While the former group emphasizes teaching and research, latter stresses on health care. A sluggish bureaucracy entrenched in the organization, most of the important people respect it as it provides necessary resources. However, many individuals within the bureaucracy flap well- conceived plans because they lack initiative or have interest in the effective management of the institution. In this back drop, Dr. Rao found Mr. Das was handling all procurements, a unique personality, he being a retired military person. While purchasing, he buys exactly what every physician order with no regard to cost. Many of his purchases are dictated by state specifications. This frequently resulted in running out of budget allocation within eight or nine months, contributing to deficit. This forced the center to borrow supplies from local hospitals. Mr. Das, it seems neither made an attempt to change state specifications nor persuaded physician and teaching staff to order less expensive items of equal quality. However, he is not violating the rules, but discharging his duties perfectly with the bureaucracy. Dr. Rao recognized that he is not only an exception in the center. Questions: 1. What are the specific problems of Dr. Rao? How do you eliminate them? 2. How could you redesign the organization? Construct a chart. 3. Dr. Rao is not strong believer of bureaucracy. As such what type of leadership styles are appropriative in this case? MAGIC KINGDOM One of the most popular tourist attractions in America is Disney World at Orlando in the State of Florida. It is a theme park with numerous attractions and a visit to America is not 265 CU IDOL SELF LEARNING MATERIAL (SLM)

considered complete without the visit to Disney World. Prior to the opening of Disney World at Orlando, there was a similar theme park near Los Angeles in the State of California, known as Disneyland. Disneyland was a creation of Walt Disney, a famous family movie maker who had produced such movie hits as Fantasia and Snow White. Disneyland is a family entertainment phenomenon and is also known as magic kingdom. Following Walt Disney’s death, the magic kingdom hit a downward trend. The management rested on the past laurels of its success and the organization stagnated into its status quo. It shunned innovation and stayed in its ivory tower away from the pulse of the audience. It became fearful to change and by all accounts, it was not fully utilizing its potential or its resources and considering the demand for its products and services, it was under charging for its licensing of cartoon characters and admission to its theme parks. Michael Eisner, the head of the Disney organization felt that he had to become more like Walt Disney, an innovator and a risk taker who encouraged creativity and who had built the Disney Empire. After analysing the situation carefully, he devised a plan that would encourage openness to change, and culture of strong creativity, that was always a hallmark of Disney’s success. Eisner himself came up with a number of new and creative ideas including new health food restaurants and he encouraged an induced creativity among others and creativity became one of his top priorities. His idea of creating a Euro Disneyland in Paris came into high focus. He met with 12 of the Worlds most respected architects in a widely creative session to bring out as best design for the theme park as possible. He encouraged and rewarded new ideas, opened the channels of communication and took the members into confidence by sharing with them his strategic plans and ambitious growth strategies. One change that came into being was the renovation and expansion of its hotel chains. He ordered an ambitious $ 1.0 Billion hotel expansion plan that doubled its room capacity to 20,000 and came at par with the well-known Ritz Carlton chain of hotels. The movie business that had practically come to a standstill and was hardly reaching break-even point, got a boost of creativity. By tightening budget without sacrificing quality and working with adventurous scripts and unknown but talented actors, it became a dominant force in the American movie industry and produced such hit films as Beauty and the Beast, Pretty Woman, Ruthless People and so on. Michael Eisner’s creativity, openness, innovation and team sprit has not been without its rewards. From 1984 to 1990, Disney’s sales increased from $ 1.7 billion to almost $ 6.00 billion. Dianey has expanded his family entertainment business to include book publishing and records and has opened a theme park in Japan. Michael Eisner made a dramatic turnaround of Disney fortune in 1980s. He is even more ambitious during the 1990s and calls it The Disney Decade. He has surrounded himself with ambitious, energetic and creative staff and he expects a period of extensive growth for Disney operations around the Globe. With the fall of 266 CU IDOL SELF LEARNING MATERIAL (SLM)

close societies and advent of instant communications and emphasis on internationalization, he is very optimistic that Disney will become a household name around the World, as it did in America. Questions: 1. Why do you think that the Disney organization, once a highly successful and growing organization become stagnant after the death of its founder Walt Disney? Describe as many reasons as possible. 2. How important is Michael Eisner’s role in the process of turnaround of the Co fortunes? Does it mean that the success of the entire organization depends upon the philosophy of its CEOs? Give reasons. 3. List and explain the internal and external forces that necessitated the change in the outlook of Disney operations. 4. Can you identify the change agents that were at work in changing the behaviour of the organizational members? 5. If you were hired as a consultant to the organization, what changes would you suggest, if any, to bring Disney organization into the global limelight? K.U Nayak is the Managing Director of Sri Ram Pharmacy, a medium sized pharmaceutical firm in Mangalore. He holds a M.S degree in pharmacy. He has been managing the company from its inception in 1980. For more than two decades, the company is doing reasonably well. Of late, Mr. Nayak has noticed that the workers are not working to their full potential. It is a well-known fact that they filled their days with unnecessary and unproductive activities and worked only for the sake of wages. About a year back, the situation has become quite alarming as the organisation began to crumble under the weight of uneconomical effort. The situation demanded prompt remedial measure to check the detrimental trend that was noticed in the last year. Mr. Nayak knew very well that the only way to progress and prosper is to motivate workers to peak performance through various incentive plans. Mr. Nayak summoned the HR Manager and enquired - What is the problem with the workers? We pay the highest in the industry. Our working conditions are excellent. Our fringe benefits are the best in the industry. Still the workers are not motivated. Find out what the workers really want? Unless productivity increases, we are doomed. The HR Manager made a detailed investigation and comes out with the following reply - The wages, fringe benefits and working conditions are not enough. Other things are equally important. I have found out from the workers that work and efficiency go unnoticed and unrewarded in the company. The promotions and benefit plans are tied to the length of 267 CU IDOL SELF LEARNING MATERIAL (SLM)

service. Even unproductive workers enjoy all the benefits in the organisation, which in fact, according to the workers, should go only to those who work hard. As a result, more and more workers are joining the bandwagon of non-performers. This has become quite alarming as workers refuse to perform. Questions 1. Explain the motivational problem in this case by relating it to Herzberg's theory. 2. Analyse the problem in depth and find out a solution to the problem. 3. If you were the HR Manager how would you motivate the employees so that they work better? SELF DIRECTED WORK TEAMS It's hard to think of the Internal Revenue Service as a service organization, let alone on that has customers. But for the last decade or so, the IRS has actually devoted itself to customer service - in fact, the agency considers customer service to be a strategic business objective. Realizing that the only way to achieve better service was through its employees, former IRS commissioner Larry Gibbs turned to the human resource department for help. In conjunction with the union, the HR department instituted a quality improvement process with more than 400 formal task groups to identify and solve problems, then move to a strategy of continuous improvement in service. Initially, the IRS formed four task groups (called \"impact teams\") that could be monitored closely for their effectiveness. Each group was small, about twenty members. A manager was assigned as the leader. The groups were aligned by function, such as tax collection or criminal investigation, and tasks were specific and measurable, within the realm of each group's own work processes. Groups were required to use a structured decision-making model, and though consensus was encouraged, it was not a high priority. Even with a rigid, closely monitored structure, the groups had to go through stages of development. Leaders and facilitators (who had separate roles within the groups) first completed special training sessions on small-group dynamics. But as the groups actually got going, members often discovered the theories weren't necessarily applicable because opportunities to practice them didn't always arise. So, the groups had to find their own paths of development. Eight months after the impact teams began working together, the IRS administered a questionnaire designed to measure their progress in effective small-group dynamics and communication. It seemed that three of the four groups were pleased with the way they had evolved, and most members had developed mutual acceptance, trust, and an ability to 268 CU IDOL SELF LEARNING MATERIAL (SLM)

communicate and make decisions together. They said they valued being able to ask each other questions. How productive were the groups? Those that tackled small, concrete projects first did the best. For instance, one team that was located in an area that served a high volume of taxpayers decided that service could be improved by ensuring that lunch and other breaks were taken on schedule - so they synchronized the office clocks every two weeks. Later, as the program expanded, different groups achieved the following; one created an automated database program that identified taxpayers who were liable for federal taxes so that state benefits could be withheld; one wrote a step-by-step employee handbook for preparing tax adjustments; and one made changes in a single tax form that reduced the taxpayer's time to complete it by nearly half. If we as taxpayers consider ourselves customers of the IRS, we can say that we are better served by an agency that has embraced groups to improve quality. Questions: 1. Why is it just as important for a government agency like the IRS as it is for a commercial business firm to rely on productivity groups to benefit the organization as a whole? 2. Do you think the rigid structure and close monitoring of the initial impact teams inhibited their development? Why or why not? 3. What characteristics of an effective group did the IRS impact teams have? 269 CU IDOL SELF LEARNING MATERIAL (SLM)