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Term I

Registration No. : 190101616126
Batch # 37


1(a) What are the dysfunctions of informal organization in the Sure pleasure Airlines?

Ans. Sure Pleasure Airlines members formed informal group who were working to counter the purposes of
the formal organisations especially when the formal group goals were to counter the organisation's goals.

 They reduced the degree of productivity and control by managers. Due to the influence of the
informal group on members behaviour, the manager was unable to control the members, nor predict
 It Reduced the number of practical alternatives. The solidarity developed in the informal groups
strengthens their cohesiveness and thus reduces manager's ability to change the groups of workers.
 It uses to increase the time required to complete activities. Informal workgroup behaviour such as
gossiping, consultations, long breaks, etc were time consuming and leaded to delay in task
 The group of members were resistant to change. To the extent that change can affect informal groups
they will resist change. Therefore, assuming change is functional, then any resistance to the change is
 Source of rumours.
 Group conformity to unacceptable standards.

1(b) Could there be any benefits of informal organization in this company?

Ans. Benefits of Informal organization for Sure Pleasure Airlines could have been as follows:

 Promotes social and cultural values - Members of informal organization share common
thoughts, social and cultural beliefs. Their interests are promoted which adds to the strength of
the organization and a commitment to accomplish its formal goals.
 Social satisfaction and security - Members satisfy their social needs of interaction, recognition
and acceptance by others in informal organizations. Their needs of friendship and support were
satisfied in this company.
 Communication - Communication travels much faster in informal transitions than formal
organization. People discuss their work and non-work reacted problems with each other and find
solutions without the support of superiors.
 Promotes creativity - People get a chance to exploit their creativity and work according to their
judgement and skills without waiting for superiors’ instruction. They think of new ideas and apply
them in practice without the fear of rejection by their superiors.
 Self-control - Employees frame their own targets and self-control their activities. Control need to
be exercised from the top.
 Restraint on manager’s discretion - Managers cannot frame goals, policies and plans not
acceptable to members of informal organizations provide them relief against official boredom
and tiredness.
1(c) What suggestions would you give to the management of this company to cope with
the informal organization?

Ans. Below points can be suggested to Management to make effective use of these small informal groups in
the organization:

 The informal groups operating in the organization should be identified and their existence must be
recognized, and action should be taken for increasing productivity.
 The patterns of informal communication should be analysed carefully. To know the sources of
misinformation, rumour, etc. an enlightened manager can use informal channels to plug the
loopholes of the formal communication system.
 The management should try to achieve equilibrium between formal and informal organizations.
Conflicts between the two should be avoided through two-way communication with the group and
their leaders.
 The management should attempt to integrate the interests of informal groups with the objectives of
the formal organization. If this could be achieved, much of the role conflict would be avoided.
 The desirable patterns of informal relationships may be incorporated into the formal structure. This
will make the organization strong.
 Informal group must be taken into confidence whenever a change in work methods is to be
introduced in the organization. It is easier to introduce a change when group norms are changed. For
overcoming resistance to change on the part of the groups, the management must share complete
information about the change with the groups and try to persuade them to accept change by
convincing them of the benefits of the said change.


SEWA - The purposeful beginning

2(a) What are the unique features of SEWA?

Ans. Under the guidance of Ela Bhatt, a women's trade union called Self-Employed Women's Association
(SEWA) was registered in 1972. A unique feature of SEWA's programmes is that they are demand-driven and
need-based, so that the women who create, implement and manage them are also those who benefit from

 SEWA was not like other typical union of workers however its growth was based on solidarity of
 Its membership was open for poor women, undependable, unreliable.
 Under labour community also SEWA worked in the areas of domestic labour, health care, child care
and video production.
 It started a cooperative SEWA Bank membership which was open only for poor women on payment of
Rs. 10 as share capital.
 It helped women to become financially independent and start their own economic activity.
 It provided credit for the productive, economic and income generating activities of the poor and self-
 For the workers who were not able to utilize loan facility due to risks, SEWA decided to offer another
form of financial services like insurance schemes against maternity risks, group insurance scheme and
it covered wide range of services.
 It helped large numbers of women to organize themselves to generate sustainable employment in
various spheres, especially dairy development and handicrafts.
 It developed appropriate infrastructure through micro-finance.
 Moreover, its aim was to empower poor and illiterate women to become economically active through
the empowerment process.
 SEWA conducted training programs which built sense of participation and managing situations for the
women and they became bold and independent.

2(b) Discuss the worker-oriented development approach of SEWA affecting the performance.
Can you suggest ways in which private corporate organisations can also be involved in
developing management programmes along with SEWA for the upliftment of the rural

Ans. SEWA was the worker-oriented association which worked towards poor women’s growth, development
and employment emerge when they have work and income security and food security. It also occurs when
they are healthy, able to access childcare and have a roof over their heads. In a membership-based
organisation, it is the member’s priorities and needs which necessarily shapes the priorities and direction of
the organisation. Hence, SEWA members themselves develop their own yardstick for evaluation.

It is also proved useful for monitoring SEWA’s progress and the relevance of its various activities and their
congruence with member’s reality and priorities.

SEWA supported women’s efforts to overcome poverty. Using an integrated approach, SEWA helped its
members achieve full employment and self-reliance through self-governance. SEWA members have created
several cooperatives and producers' groups, thereby forging market linkages and enhancing their bargaining

SEWA Bank had issued loans to its members to provide for its members' health care, it also helped them start
health cooperatives and developed an insurance program that provides members’ coverage for health care,
emergencies and loss of life.

In SEWA Academy members learn together, gain information, knowledge and confidence, important in
equipping them with the skills to become strong and capable leaders and managers. The SEWA Academy also
communicated the concerns, struggles and experiences of poor self-employed women to the public and to
policy makers through its Research and Communication services.

SEWA is also working through video, telephone, computer, and satellite communications to provide
Information Technology to the working class. To address legal issues such as housing and wage disputes, police
harassment and other exploitation issues, SEWA provides its members with legal aid services.

It was a movement of self-employed workers with women as leaders. Through their own movement, women
become strong, visible and their remarkable economic and social contributions become recognized.
1. Describe three level of organization and discuss ethical behavior of formal and informal
organization with examples?

Ans. The organization is part of an economic system. It responds to the marketplace, competition, fluctuating
resources, etc. The survival of the organization depends upon its ability to adapt to the demands of its external

Organizations are divided into three levels: Organizational, Process, and Job or Performer. At each level, goals
and measures are defined, which indicates what was to be done (Design) and determine what level of
management is responsible for making sure the change happens.

The Three level Framework

Levels Goals Design Management

Organization Organization Organization Organization
Level Goals Design Management
Process Level Process Process Process
Goals Design Management
Job/Performer Job Goals Job Design Job
Level Management

A formal organization is an organization with a fixed set of rules of intra-organization procedures

and structures. Examples of formal organization are - company, school, college, bank, etc.

Informal Organization exists within the formal organization. An informal organization is a network of
personal and social relationships. People working in a formal organization meet and interact

Ethically informal groups must be formed for healthy growth of an organization, for example if we
have Formal Organization as Company which holds different Informal groups within team then they
must plan for meets and interactive sessions for increasing productivity for the specific organization
instead of forming a group for unnecessary discussions.

2. Define HRM Function in Business Organization? What are the various challenges faced by
HR Managers in managing employees in today’s Industrial Organization?

Ans. Human resource management is all about allowing staff to utilize their qualities in order to fulfil
their contribution and role of the organization motive and aim. Good human resource management
is crucial if organization want to entice and hold good staff. It also reduces the risk to its staff and
reputation. HRM can also responsible reducing organization cost.

It’s considered as the backbone of any organization, it has marvelous relevance in the productivity
industry. Management of the people and staff practices and policies enable to carry organization

Some of the major challenges faced by HR managers are as follows:

1. Recruitment and Selection - Finding a suitable candidate for the job from a large number of
2. Emotional and Physical Stability of Employees – HR should try to understand the attitude,
requirements and feelings of employees, and motivate them whenever and wherever required.

3. Balance Between Management and Employees – Profits, commitment, cooperation, loyalty, and
sincerely are the factors expected by management, whereas better salaries and wages, safety and
security, healthy working conditions, career development, and participative working are the factors
expected by employees from management.

4. Training, Development and Compensation – A planned execution of training programmes and

managerial development programmes is required to be undertaken to sharpen and enhance the
skills, and to develop knowledge of employees. Compensation in the form of salary, bonus,
allowances, incentives and perquisites is to be paid according to the performance of people.

5. Performance Appraisal - If employees are not getting proper feedback from them, it may affect
their future work. A scientific appraisal technique according to changing needs should be applied
and the quality of it should be checked from time to time.

6. Dealing with Trade Union - Union members are to be handled skillfully as they are usually the
people who oppose the company policies and procedures. Demands of the union and interests of
the management should be matched properly.

3. Define motivation? Explain motivation with either Maslow’s Need Hierarchy theory or
Herzberg’s Two Factor Theory?

Ans. Motivation is a biological, social or psychological state that drives a person towards a specific
action'. It’s a desire that fuels an individual to perform or continue an action based on needs and
wants of the individual.

It results from the interaction of both conscious and unconscious factors such as

(1) intensity of desire or need

(2) incentive or reward value of the goal
(3) expectations of the individual and of his or her peers.

Maslow proposed that motivation is the result of a person's attempt at fulfilling five basic needs:
physiological, safety, social, esteem and self-actualization. According to Maslow, these needs can
create internal pressures that can influence a person's behavior. As the name of the theory
indicates, Maslow believed that these needs exist in a hierarchical order. This progression principle
suggests that lower-level needs must be met before higher-level needs.
4. What is difference between a Leader and a Manager? Explain basic difference between the trait,
behavioral and contingencies types or categories of leadership theory?

Ans. The main difference between leaders and managers is that leaders have people follow them
while managers have people who work for them. A successful business owner needs to be both a
strong leader and manager to get their team on board to follow them towards their vision of
success. Leaders promote change, but Managers react to the change. A leader aligns people, while a
manager organizes people.

While the two inherently share many similar characteristics, they differ in that not all managers are
leaders, but all leaders are managers. Leaders can be trained, and traits that a leader must have can
be taught and developed.

Trait Theories Behavioral Theories defines a leader's effectiveness based on individual

characteristics, it defines a leader's effectiveness based on task and relationship orientation. As per
trait theory “leaders are born”.

The main difference between these two theories is traits are not something that can be taught to a
person. While traits can develop over time, we typically cannot teach someone a specific trait, they
must learn it on their own and let it develop.

In comparison, behaviors can be learned. Behavioral traits describe the characteristics that
consistently describe a person's behavior. When someone acts spontaneously, without giving a lot of
thought to the consequences, we may describe them as impulsive. This behavior trait helps describe
what this person is like.

5. What is performance appraisal and Management? Explain briefly how compensation and
rewards are integrated with performance appraisal?

Ans. Performance appraisal is the process of evaluating and documenting an employee's

performance with a view to enhancing work quality, output and efficiency. They provide feedback to
a person on their overall contribution for a period. It’s a systematic and objective method of judging
the quality of an employee in performing his job and a part of guiding and managing career
Performance management is the process of creating a work environment or setting in which people
are enabled to perform to the best of their abilities. Performance management is a complete work
system that begins when a job is defined as needed. It ends when an employee leaves your
organization. Whereas performance appraisal, on the other hand is the ongoing process of
evaluating employee performance.

Performance and reward help to create and maintain a high-achieving organization culture by
delivering programs that reward and recognize key employee capabilities, skills, behaviors,
experience and performance, and ensure that reward systems are market-relevant, fair and cost-

Performance Management and Reward Practices in organizations are showing a high degree of
commitment towards reinforcement of reward practices which are aligned with other HR practices
and the goals of the organization for attracting, retaining and motivating employees.
Its objective is to reward employees fairly, equitably and consistently in correlation to the value of
these individuals to the organization. Reward system exists in order to motivate employees to work
towards achieving strategic goals which are set by entities. Having a good reward system helps keep
employees happy, loyal to the company, and eager to move up the ladder. Rewards, like public
recognition and additional pay, motivate employees to work harder.

6. Define conflict and negotiation in organization and Explain the nature of conflicts in

Ans. Organizational conflict is a state of discord caused by the actual or perceived opposition of
needs, values and interests between people working together. There is also conflict within
individuals between competing needs and demands to which individuals respond in different ways.
Conflict and negotiation are aspects of running a business. Many small or home-based businesses
avoid internal conflict and negotiation because owners are primarily responsible for completing
business functions.
Conflict is a normal part of life and there are many issues that could cause conflicts to arise within
community organizations. If not resolved, conflict can be highly destructive. However, committees
can take steps to minimize potential situations of conflict before they arise or to resolve conflict
There are five basic types of conflicts as below:

1. Conflict within the individual

2. Interpersonal Conflict
3. Conflict between the individual and the group
4. Intergroup conflict
5. Inter-organizational conflict