N

ASSIGNMENT SOLUTIONS GUIDE (2015-2016)

M.C.O.-01
Organization Theory and Behaviour
Disclaimer/Special Note: These are just the sample of the Answers/Solutions to some of the Questions given in the
Assignments. These Sample Answers/Solutions are prepared by Private Teacher/Tutors/Authors for the help and Guidance
of the student to get an idea of how he/she can answer the Questions of the Assignments. We do not claim 100% accuracy
of these sample answers as these are based on the knowledge and cabability of Private Teacher/Tutor. Sample answers
may be seen as the Guide/Help Book for the reference to prepare the answers of the Question given in the assignment. As
these solutions and answers are prepared by the private teacher/tutor so the chances of error or mistake cannot be denied.
Any Omission or Error is highly regretted though every care has been taken while preparing these Sample Answers/
Solutions. Please consult your own Teacher/Tutor before you prepare a Particular Answer and for up-to-date and exact
information, data and solution. Student should must read and refer the official study material provided by the university.
Attempt all questions.
Q. 1. What are various responsibilities of various level of management in an organisation? Explain various functions
and role of managers.

Ans. An organisation consists of three levels of management they are:

(i) Top level management: It consists of Board of Directors, chief executive or the managing director and the general
manager. It is the ultimate source of authority. It helps in setting the goals and formulating the policies of the organisation. It
further enables to approve the decisions of middle level management.
(ii) Middle level management: It consists of heads of functional departments, regional managers, plant managers etc. It
includes departmental and sectional heads e.g. finance manager, branch manager etc. and this level of management is also
responsible for the implementation of top management policies. The main function of this level is to execute the plans of the
organisation according to the policies and goals set by the tops level management. Further to assign the duties among the junior
level managers by giving them necessary instructions.
(iii) Lower level management: It consists of supervisors, foreman, account officers, and other subordinate staff members.
This level is much more concerned about the direction and control functions of the management. The main function of this level
is to give instructions to workers and supervise their work.
All the levels should be properly managed and controlled by the organisation to meet the economic growth and need of the
business. Therefore, responsibilities should be managed properly at all levels of management in an organisation to get the desired
results.
Managers play a very important role in the smooth and efficient working of an organisation. Manager assigns the task
according to the authority and the job description of the position of the manager. He is expected to do the work according to the
capabilities and expectations of the skills and resources available with the organisation in the form of man and machine.
The main functions of managers are:
(i) Planning: It includes those activities that lead to the definition of ends and the determination of appropriate means to
achieve the defined ends. It is the course of development by which a manager anticipates the future and discovers alternative
course of action that is open to him.
(ii) Organising: It is the process by which the structure and allocation of jobs are determined. It includes all managerial
activities that are undertaken to translate the required activities into a structure of tasks and authority. It includes four subfunctions and they are as follows:
(a) It defines the nature and content of each job in the organisation.
(b) It determines the bases for grouping the jobs together.
(c) It decides the size of the group.
(d) It helps in delegating authority to the assigned manager.
(iii) Staffing: It is the procedure or function by which managers can select, train, promote and retire their subordinates.
Staffing deals with the complete human resource planning activities that is performed by the managers.
(iv) Directing: This process helps in guiding the actual performance of subordinates towards common goal. It is one aspect
of this function that is directed towards lower levels of management.

(v) Communicating:This process helps in transmitting ideas to others for the purpose of achieving a desired result.
(vi) Decision-making: This process refers to consciously choosing a course of action from available alternatives to achieve
a desired result.
(vii) Controlling: This process measures the current performance and guides it towards some predetermined goal. It includes
activities that managers undertake to assure that actual outcomes are consistent with planned outcomes. There must be three basic
conditions that must exist to undertake control and they are as follows:
(a) Standards
(b) Information
(c) Corrective or counteractive action.
Besides these principles they perform various roles also in an organisation namely, interpersonal roles which includes
leading, liasioning, and symbol or figure head, informational roles covers monitoring, sharing information and to act as a
spokesperson and decisional roles such as taking initiative, handling disagreement, allocating resources and negotiating. All
these functions and roles are performed by the managers in order to maintain a balance between all the levels of management.
These functions are performed by the senior managers and high rank officers in order to maintain a balance between the work and
people. Besides assigning and getting the work done through the subordinates, it becomes the duty take care of them, by giving
them enough space to express themselves and work satisfactorily in the organisation. Thus, managers play a very important role
in the smooth functioning of an organisation by devoting his time to the staff and giving them enough space to express and solve
the issues, be it official or personal.
Q. 2. Discuss the Modern Theory of Organisation. How is it relevant in the modern organisation?
Ans. Organisation is a social entity grouped together to achieve the common goals and objectives. It helps in the proper
administration, growth and diversification, optimum uses of resources, creativity and humanistic approach towards the superiors
and subordinates. Organisations adopt classical theories to attain effective functioning with their main streams as bureaucracy,
administration theory and scientific theory. Scientific theory of management enables to determine the appropriate method to
perform the various functions. It has three theories namely, neo-classical theory, modern theory of organisation and contingency
theory, which are applied according to the need and situation arising in the organisation from time-to-time.
Modern theory of organisation takes consideration of all the dynamic conditions at the micro and macro levels. It stresses
on the integration if individuals and organistional units through system approach. It gets reflected in terms of inputs, process,
outputs and feedback.
The modern organisation theory believes in the dynamic conditions at micro and macro levels. It identifies the dramatic
changes that are taking place in the society. The modern organisation theory is a compilation of outlook of diverse theorists of
organisation. The theory is based on the representation of a structure therefore it is considered to be identical with system theory.
Chester I. Barnard analyzed organisation as a societal arrangement of supportive communications among the members;
organisation, individuals and customer are parts of environment.
Mary Parker Follet had laid emphasis on the integration of individual and organisational units through systems approach.
Norbert Weiner a pioneer in cybernetics gave crystal clear vision of the organisation as a system. Many other operational
researchers like Churcham , etc. were also among those who think that the system as an interrelated having multifaceted functions
related to the various components. Some more social scientists like Katz and Kalu presented a complete theory of organisation
using open systems approach.
The systems approach is extensively used in organisational investigation. It has proved to be a very useful tool for the
conceptualization of the organisation and its external and internal relationships. It also assists in the contingency or situational
view of organisation which marks a fundamental disappearance from the traditional approach that emphasized generally as one
of the best way of structuring organisations. Under the control of systems theory the current view in organisations analysis is that
the structure can vary from situation to situation depending on such factors as their environmental conditions and technology.
Scott and Mitchell proposed contingency approach as new micro phase in management.
Its major attention was problem solving puzzles and putting out fire, the approach had practical and realist flavours. It is
considered as gentle wind in the management literature that dispersed the humanistic and general system fog. The main benefit of
contingency theory was that it compelled us to be aware of complexity in every situation. It forces us to take active and dynamic
role in delivering out the best possible solution for each problem. It is similar to system theory as it examines the relationships
between sub-systems of a specific organisation in a given environment and also offers desired solutions to particular organisational
problems.
Q. 3. What is an individual behaviour? Explain the operant conditioning theory of learning. How is it different
from the classical conditioning theory of leaning?
Ans. The response made by an individual can be referred to as behaviour. The response could be the result of the influence
of external factors. The external factors can be termed as stimulus. The response can be termed as action taken by the individual.
There are factors like heredity and environment that determines the behaviour of an individual. According to psychologists,

N
3

heredity determines the nature of the person while environment what a person can becomes. The heredity and environment
factors determine the behaviour of an individual.
The characteristics transmitted by parents to the next generation can be referred to as heredity. It is through genes that human
beings acquire biological characteristics that control the development of tissues and organs of the body. The biological characteristics
are determined at the time of the conception. Its the parents that influence heredity characteristics through the transmission of
genes. It is through genetic transmission that children acquire certain features of physique and physique qualities. According to
researches done in genetic engineering, heredity determines physical, mental and emotional states of the individuals. The physical
stature, gender, colour, intelligence etc. are influenced by heredity factors.
The environmental factors like family, society, culture etc. influence the behaviour of the individuals. The process of children
socialisation starts in the family. In this process, the childrens are made to follow the behavioural patterns of the family. The
members of the family force their children to conform to certain acceptable behaviour and avoid unacceptable behaviour. So, the
childrens acquire the knowledge of acceptable as well as unacceptable behaviour from their families. Thereafter, childrens start
socializing with a number of social groups like friends, school and other members of the society. It helps them in acquiring
socially acceptable behaviour and tries to avoid socially unacceptable behaviour as a result of their interaction with these groups.
The culture in which children are brought up determines factors like decision-making styles, attitudes, independence v/s dependence,
soberness v/s aggression, competition v/s cooperation etc. in them. Children learn norms, values and attitudes which are prescribed
by the culture by being member of a particular culture. It forces individuals to behave in conformity to the cultural norms that are
established by the society. It can be concluded that society and culture apply greater influence on the behaviour of individuals.
(i) Classical Conditioning: Classical conditioning is an important learning theory where the learning that takes place
through the connection between unconditioned stimulus and conditioned stimulus. These two stimuli are paired to bring out the
desired response. The mental stimulus that does not elicit the response is conditioned stimuli. The response that is elicited by the
conditioned stimulus can be termed as conditioned response. The conditioned stimulus also starts eliciting the response when it
is paired with unconditioned stimulus. In this process, a stimulus response bond is developed between a conditioned stimulus
and a conditioned response. It is done through the repeated linking of a conditioned stimulus with an unconditioned stimulus.
A great researcher Pavlov conducted the experiment on the dog by providing him with the food. In this case, the food is the
unconditioned stimuli and the salvation of the dog is the unconditioned response. Pavlov used a bell as a form of conditioned
stimuli and when it rang, the dog never responded to it. Then he started pairing of conditioned stimuli (bell) with the unconditioned
stimuli (food). The food was presented to the dog and bell was also rung. It was repeated several times and after some time, the
bell also elicited the same response as the food. In this case, the conditioned stimulus (bell) elicited the response of salivation
even when the unconditioned stimulus (food) was not present. Pavlov rung the bell and dog salivated without the presentation of
food. It was observed that the dog learnt the ringing of the bell with the salivation. The theory of classical conditioning focuses
on the building up an association between an unconditioned stimulus and a conditioned stimulus.
The classical conditioning theory has been criticised on the ground that it considers the learner to be a passive element.
According to this theory, the learner notices the connection between the unconditioned stimulus and the conditioned stimulus and
forms an association. It also explains the simple reflexive behaviour. In most of the organisations, people are actively involved
in executing their behaviour and are not passive. It was observed that behaviours were not elicited but are emitted. These
behaviours are under workers control.
(ii) Operant Conditioning: The learning theory of operant conditioning was given by Skinner. The operant theory supports
and believes that a learners response is instrumental in producing a reinforcing stimulus. It signifies that the response that
produces the reinforcement becomes stronger and the response that does not produce reinforcement becomes weaker.
Skinner explained the theory of operant conditioning with the help of simple box where liver was fitted at its ends. The liver
is like a switch that operates as food-delivering mechanism. A hungry rat was placed inside at the box. It was observed earlier that
the rat is sitting idle in the box. Gradually, he starts exploring for food inside the box. While searching for food inside the box, he
presses the liver (food -delivering mechanism). A piece of food was released at the press of a liver. The rat repeated the same act
of pressing liver and food started coming in the box. He eats the food every time it cames in the box. In this case, the delivery of
food constitutes the reinforcement and reinforcement is dependent upon the operation of the lever. The box was arranged in such
a way that every response i.e., pressing of liver, may not release the food. There were occasions when some response may release
the food and some may not release. It was termed as partial reinforcement. The arrangements can be made in such a way that
pressing of lever may result in a shock to the rat. It was termed as negative reinforcement. The response that fulfils the desired
need of the rat is termed as positive reinforcement. At the same time, the response may also lead to escape from the painful
situation that is known as negative reinforcement.
The operant theory of learning focuses on the fact that reinforcement follows a response. It means that response becomes
instrumental in achieving the appropriate goal. It also suggested that the manipulation of response and reinforcement may increase
or reduce or can lead to the extinction of the behaviour.

N
4

Q. 4. Differentiate between the following:

(a) Maslows and Herzbergs Theory
Ans. Maslows theory of need hierarchy and Herzbergs two-factors theories are similar and dissimilar in certain respects.
The following points of similarities are observed in both theories.
(i) Maslow and Herzbergs theories have recognized that motivation is a procedure and it results in to presentation.
(ii) Both the theories have measured the entirety of needs. Herzberg measured positive needs as motivators. Maslow
measured the same needs as esteem and self-actualization.
(iii) Both theories have measured that requirements to establish the motivation and motivation determines the behaviour of
persons.
Difference between Maslows Theory of need hierarchy and Herzbergs two factors is as follows:
S.No.

Differences

Maslows Need
Hierarchy

Herzbergs Two
Factors Theory

1.

Nature

It is descriptive.

It is prescriptive.

2.

Arrangement
of Needs

The needs are having

sequential arrangement.

There is no sequential
arrangement.

3.

It has both higher order

hygiene and motivators.
Due to unsatisfied needs
it causes behaviour and
behaviour leads to
performance.

It is more based on the

4.

Classification
and lower order needs.
Relationship

5.

Motivation

It has satisfied need

which is not a
motivating factor for the
organisation.

It has higher order

needs are motivators.

6.

Financial factors

The pay and financial

benefits are motivators.

The financial benefits

are not motivating.

7.

Applicability

It has a macro view and

applicable to general
motivation.

It considers micro view

and applicable to work
motivation.

8.

Relevance

It is relevant to all
individuals.

It is relevant to white
collar and professional.

It has satisfied needs

which gives positive
performance.

(b) Psychoanalystic Theory Self Theory

Ans. The psycho-analytic theory was developed by Sigmund Freud. According to Freud, human mind comprises of three
elements that are responsible for shaping the personality of an individual. They are preconscious, conscious and unconscious
elements. The unconscious state of mind is influenced by hedonistic principle while unconscious state of mind determines
behaviour. Lastly, the conscious element is directed by reasoned reality principle. He developed a structure of human mind for
explaining personality. According to him, it is maind consists of three elements known as: Id, Ego and Super ego.
(i) The Id: It is the totality of instincts that are oriented towards increasing pleasure and avoiding pains and striving for
immediate satisfaction of desires. On the foundation of Id, the personality characteristics of an individual are built.
(ii) The Ego: It is the executive part of the personality Ego is rational and logical and selects the features of the environment
and stores them. It works as the conscious mediator between realities of world and the ids demands.
(iii) The Super Ego: It is a moralistic segment of human personality that comprises of noblest thoughts, ideals, feelings that
are developed through absorption of cultural values and attitudes.
(iv) The Libido: The Libido is a psychic energy. It is dynamic and makes any system to function.
According to this theory, wishes are generated by the Id and it compels immediate gratification of these desires or else
tension is generated for their gratification. It tries to gratify them by primary process and reflex action.
For example, if an employee is negative, the superior scolds him for not performing the given task. He gets hurt by their
words and since he cannot be inconsiderate with the superior, he tries to bear discomfort by withstanding his emotion. He does
this by break up his tooth and bears it. If he fails to endure his emotion he tries to share the emotions with his close friends.
This is called as primary process to conquer the nervousness. If the primary process fails, energy flows to ego, which
provides sensitivity, thinking, judgement and memory. Then individual decide for a particular action. On the other hand, while

relating to the secondary process super ego acts as a judge. Thus, wishes are fulfilled by ego according to the values established
by super ego. If ego is able to put together id and super ego individual gets satisfaction, otherwise it results into frustration
because super ego tries to punish the ego. To carry on the example, the employee tries to introspect himself and learns to work to
avoid any uneasiness in the potential. This theory is supportive in accepting the character of an individual.
Self theory was recommended by Carl Rogers. It is also identified as Organism theory or Field theory. The theory emphasises
person as an initiating, creating, and influencing the determinant of behaviour within the environmental framework.
Elements of self-theory are explained below:
(i) Organism: Organism is the person. It is the storage space of all experience. Therefore, it forms locus of orientation. It is
guided by cognizant and insensible elements. Therefore, the individual behaviour is the reason for self-evaluation and experiences.
(ii) Phenomenal field: Phenomenal field signifies entirety of all understanding assembled by ecological communication.
According to the theory, fulfilment of self-actualization requirement is the basic motivator. It is prohibited by surroundings in
which a person lives.
(iii) Self-concept: Self-concept is the result, which forms foundation for personal behaviour and individuality. Self is a
mixture of perception, attitude, idea, values and traits. It characterizes the concept of I and Me. In this context, I indicates
ones own psychological process. Therefore, it is called personal self. Me is related to the thinking of an individual as to how he
appears to others. Consequently, it is called social self. As a result both personal self and social self determine individual behaviour.
Self-theory provides precious direction in accepting behaviour. The theory is organized approximately for the person and
not around situation, which is unmanageable.
(c) Autocratic or Free-rain style of leadership
Ans. Autocratic or Authoritative Style: An autocratic leader is a type of leader who centralises power and decisionmaking within himself and implement his complete control over the subordinates. In autocratic style of leadership, subordinates
are compelled to follow the orders of the leader under the threat or penalties. The subordinates are given no opportunity to be part
of goal setting or taking any initiative or giving any suggestion. They are subject to close supervision and thus have a tendency to
avoid responsibility. The autocratic manager pays least concern for his employees well-being as they suffer from frustration and
low morale.
Democratic or Participative Style: Democratic style of leadership is also called participative style of leadership. In democratic
style of leadership, decisions are taken by the leader after consulting with his subordinates and with their participation in the
decision-making process. The participative leader or democratic leader encourages his subordinates to make suggestions and
further encourages them to take initiative in setting goals and implementing decisions. It enables the subordinates to satisfy their
social and ego needs that result in their commitment to organisational goals and higher productivity. The regular and repeated
interactions between the subordinates and managers help in building bonds of faith and confidence.
(d) Intra Personal Conflict and Inter Personal Conflict
Ans. Intra-personal conflict is a conflict between the people which arises due to frustration, demanding equal attention and
goals and thus have negative as well as positive impact on the functioning of the group. It includes:
(i) Goal conflict
(ii) Role conflict.
(i) Goal conflict is due to the efforts being made towards one common goal and ignoring the other goals of the group. It can
be of three types:
(a) Approach-approach conflict
(b) Approach-avoidance conflict
(c) Avoidance-avoidance conflict.
(ii) Role conflict means it is the final reason for intra personal conflict which is the basic requirement of the person to have
a significant role altogether along with the availability of time and resources to match the requirements.
Inter-personal conflict is usually between two or more persons in an organization which arises due to the differences of
perception, temperament, person-ality, value systems, socio-cultural factors and role ambiguities. Usually, the superiors who
have conflicts with their co-workers or subordinates is due to the personality problem and attitude. There are four sources of
inter-personal conflict, they are:
(i) Personal differences
(ii) Information deficiency
(iii) Role incompatibility
(iv) Environmental stress.
Q. 5. Briefly comment on the following statments:
(a) Cross Cultural Management
Ans. Cross-culture management has emerged in the organizations which have given rise to differences in the role of sex.
Men and women both are enjoying the higher level jobs and remuneration. It has also given rise to the differences in the
achievement motivation by setting difficult goals, giving lot of feedback, taking lot of responsibility of work and by encouraging

N
6

an action orientation. Cross-culture has led to differences in work values and motivation factors, social loafing, decision making,
conflict handling, leadership behaviour and differences in personality.
Taylor Cox and Stacy Blake has suggested six arguments to manage the cultural diversity they are cost argument, resource
acquisition argument, marketing argument, creativity argument, problem solving argument and system flexibility argument.
Cox and Blake have given various spheres of activities to manage cultural diversities as organizational culture, mind-set
about diversity, cultural differences, human resource management systems and impartiality.
Modernization has given rise to manage the multinational organizations as they are in large number. The multinationals are
spread all over the world but owned and controlled by the headquarters. It has various features as they have to work on different
legal, political and economic system, face tough competition from multinationals as well as from the local industries, need to be
flexible, organizational structure is flat, prefer to appoint the people with global view, need to train multiskills to the employees,
special training in respect of cross-culture and socialization, to maintain a balance between the countries to maintain good
relations for the sake of running effective business in their country. It is very essential to maintain global culture within the
organizations to have effective and fruitful business in various countries by creating clear and simple background which supports
their culture and needs. They need to develop global career paths and to use cultural differences as a major asset.
(b) Objectives of Organisational Development
Ans. Organisational development is the systematic process to change the culture, system and behaviour of organization. It is
a process that helps in solving organizational problems and achieving organizational objectives. Organisational development
works as significant mechanism that helps in impressing the organization and its employes through planned and established
system. Organisational development strategies focusses on enhancement of organization effectiveness and solving organisational
problems.
Organisational development includes structural and technological changes and focusses on working relationships of employees
with the organisation. It is modern approach to management of change for human resources development.
Its objective primarily includes the following:
(i) It increases openness of communication within persons of the organisation.
(ii) It helps in enhancing commitment, self-direction and self-control.
(iii) It encourages decision-making for important organisational personnel through collaborative efforts.
(iv) It increases the level of trust and mutual emotional support among organisational employees.
(v) It helps in developing strategic solutions with higher frequency.
(vi) It encourages people to work as human beings rather than mere resources for the organisation.
(vii) It helps in providing opportunities to influence the people, work, environment and organisation.
(viii) It helps in increasing organisational effectiveness.
Organisational development emphasizes supportive and creative opportunities for growth. The underlying values of
organisational development form the basis of organisational development culture in an organisation.
The process of organisational development is complicated and time-consuming. It comprises of three basic factors and they
are:
(i) Data gathering and organisational diagnosis
(ii) Action intervention
(iii) Process maintenance.
(c) Overcoming resistance to change
Ans. Today, organizations operate in a very dynamic and changing environment. In order to become competitive, they make
suitable changes from time-to-time to serve customers better. It also makes these organisations on par with the latest technology
and helps in maintaining or improvising their existing levels of profits. All such forces that initiate changes can be broadly
divided into two categories and they are Internal Forces and External Forces.
Internal Forces
(i) Change in leadership: If there is change in leadership of an organisation then this may result in change in perceptions,
strategies, activities and results.
(ii) Change in employees profile: There are some changes in the profiles of employees that are inevitable because of death,
retirement, transfer, promotion, discharge or resignation. In modern organisations, women employment is on the increase and
their strength has increased manifold in recent years. In this era of globalisation, employees are recruited from different national
and cultural backgrounds. The human resource policies and practices have to be reoriented to suit this type of assorted workforce.
(iii) Change in employees morale and motivation: The changes in leadership, policies and practices may affect the
morale and motivation of the employees. It can result in the declining productivity, production and profits.
(iv) Union influence: Despite the implementation of policies of liberalisation by many governments, the influence of the
union on many organisations in respect of recruitment, service conditions, wage rates etc. is still perceptible. The management is
desired to make suitable changes in response to demands of the union.
(v) Implementation of new technology: The technological developments in an organisation result in change of job, production
process, and also in the profile of the employee. It results in substantial changes like adding of more computers, automation; and

N
7

reengineering programmes in most of the organisations. The fast growing technology of broadband and internet has its profound
impact on the markets of number of organisations. The field of biotechnology has also created large numbers of products.
External Forces
(i) Competition: The global competition has played vital role in modern-day organisations. It has resulted in the mergers
and acquisitions trends and they have been increasing year by year. The organisations have to make suitable changes in response
to the demands from the competition they face in the global market. Organisations should acquire the capacity of developing new
products rapidly and market them quickly. These competitive challenges can be faced by short production runs, short product
cycles by equally flexible and responsive systems.
(ii) Economic fluctuations: The economic fluctuations in the security markets, interest rates, exchange rates etc. continue
to impose drastic changes on organisation.
(iii) Social trends: The changing social trends like increase in college attendance; delayed marriages by young couple;
economic upliftment of women and backward communities etc. are to be considered by organisations. These types of changes in
social trends results in fluctuations in the demand for products used by these set of groups.
(iv) Global politics: Global politics lay great emphasis in modern-day organisations and its working. Global political activities
like 9/11 incident, collapse of Soviet Union, the reunification of Germany, the policies of W.T.O., U.S attack on Afghanistan and
Iraq etc. have made their strong impact on the business of different organisations, where there activities were directly related to
such developments.
Resistance to change can be described as an attitude or behaviour that shows disinclination or reluctance to approve a
particular change. This resistance is to be overcome for successful change. There are occasions when resistance to change serves
as a feedback to reconsider the proposed change. As a result, resistance to change can also be used for the benefit of the
organisation. The real meaning of constructive approach to resistance is to consider objections raised and make suitable amendments
and educate the employees about the proposed change. Resistance can be overt, implicit, immediate and differed.
When the resistance is overt and immediate, the management can take immediate remedial steps to deal with such resistance.
The implicit resistance may result in loss of loyalty, loss of motivation, increased mistakes, increased absenteeism etc. When
substantial amounts have already been invested in carrying out the change in due course of time, differed resistance creates
problem to the management. The resistance to change may be introduced by the organisation, the individual or both.
(d) Culture Person Compatibility
Ans. According to study by Kotter and Heskett, culture has strong impact on the performance of the organisations. This
study has delivered four major conclusions and they are as follow:
(i) The corporate culture can have an important and noteworthy impact on a firms long-term economic performance.
(ii) The corporate culture will probably be proving more important factor in determining the success or failure of firms in
future.
(iii) The corporate cultures that restrain or inhibit long-term financial performance can be many but they can develop
easily, even in firms that are filled with reasonable and intelligent persons.
(iv) It may be a bit challenging to change corporate cultures but still they can be made more performance enhancing. In an
organisation, organisational cultures can be perceived as combination of objective factors (innovation, risk taking,
attention to detail, outcome orientation, people orientation, team orientation, aggressiveness, stability) that may be
having either high or low strength or in between, leading to performance and satisfaction.
The impact of culture on the effectiveness of the organisations can be functional as well as dysfunc-tional. Its positive
implies culture has impact on control, normative order, innovation, promotion and employees performance and satisfaction. On
contrary, the negative side implies the fact that culture may lead to groupthink, collective blind spots, resistance to change and
innovation.

N
8