Reg.

No: 61/19202 and Name: Mohammed Hussain

Paper 1: Organisational Behaviour

Response Sheet 1

Question 1:

Define Values. Critically evaluate “Allport-Vernon” classification of values. How values affect
the business processes.

Values represent basic convictions that “a specific mode of conduct or end-state of

existence is personally or socially preferable to an opposite or converse mode of conduct or
end-state of existence” (Rokeach, 1973). When the values are ranked in terms of their
intensity, i.e., when the value are prioritized in terms of their intensity, it is called value
system. Types of values include ethical/moral values, doctrinal/ideological (political,
religious) values, social values, and aesthetic values.

Values have both content and intensity attributes. The content attribute signifies that a
mode of conduct or end-state of existence is important. The intensity attribute specifies
how important it is. Ranking an individual’s values in terms of their intensity equals that
person’s value system.

Values build the foundation for the understanding of attitudes and motivation of an
individual, since; value has a great impact on perceptions. Values shape relationships,
behaviors, and choices. The more positive our values, more positive are people’s actions. A
significant portion of the values an individual holds is established in the early years—from
parents, teachers, friends, and others.

Allport-Vernon classification of values:

1. Theoretical: Interest in the discovery of truth through reasoning and systematic

thinking.
2. Economic: Interest in usefulness and practicality, including the accumulation of wealth.
3. Aesthetic: Interest in beauty, form and artistic harmony.
4. Social: Interest in people and human relationships.
5. Political: Interest in gaining power and influencing other people.
6. Religious: Interest in unity and understanding the cosmos as a whole.

Work behavior across cultures and businesses

In every culture, there are different sets of attitudes and values which affect behavior.
Similarly, every individual has a set of attitudes and beliefs – filters through which he/she
views management situations within organizational context. Managerial beliefs, attitudes
and values can affect organizations positively or negatively. Managers portray trust and
respect in their employees in different ways in different cultures. This is a function of their
own cultural backgrounds. For example, managers from specific cultures tend to focus
only on the behavior that takes place at work, in contrast to managers from diffused
cultures who focus on wider range of behavior including employees’ private and

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professional lives. Trompenaars and Hampden-Turner (1998:86) have conducted a

survey to find out whether the employees believe their companies should provide housing to
the employees. It was found out that most managers from diffused cultures believed that
company should provide such facility (former Yugoslavia 89%, Hungary 83%, China 82%,
Russia 78%), whereas less than 20% managers from specific cultures such as UK, Australia,
Denmark, France, etc., agreed on the same.

Laurent (1983: 75-96), as a result of his survey with managers from nine Western
European countries, U.S., three Asian countries found distinctly different patterns for
managers in common work situations.

Task and relationship: In response to the statement which states that the main reason
for a hierarchical structure was to communicate the authority- relationship, most U.S.
managers disagreed whereas, most Asian , Latin American managers strongly agreed. It
was quite evident that U.S managers, having an extremely task- oriented culture, believed
more in flatter organizational structure to become more effective. On the other hand, the
second sets of managers were from more relationship- oriented cultures where the concept
of authority is more important. Similarly, in response to the statement which says that in
order to have efficient work relationship it is often necessary to bypass the hierarchical line,
differences were found across cultures. Managers from Sweden (task- oriented culture)
projected least problem with bypassing since getting the job done is more important than
expressing allegiance to their bosses. In contrast, Italian managers, coming from a
relationship-oriented culture, considered bypassing the authority/boss as an act of in-
subordination. The above- mentioned example is inevitably a caution signal to the universal
management approach, irrespective of culture.

Managers as experts or problem-solvers: In the same study, Laurent asked managers

from various cultures whether it was important for them to have at hand, precise answers
to most questions their subordinates might raise about their work. French managers
believed that they should give precise answers to the questions in order to maintain their
credibility and retain the subordinates’ sense of security. On the contrary, U.S. managers
believed that a managers’ role should be to act as a mentor who would facilitate the
employees to solve the problem. They also believe that providing direct answers to a
problem actually discourages subordinates’ initiative and creativity and ultimately hampers
performance.

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Question 4:

Define Motivation. Critically evaluate contribution of McGregor to motivation.

Motivation is the activation or energization of goal-oriented behavior. Motivation is “the

processes that account for an individual’s intensity, direction, and persistence of effort
toward attaining a goal” (Robbins, 2003). Intensity is concerned with how hard a person
tries. This is the element most of us focus on when we talk about motivation. Direction is
the orientation that benefits the organization. And Persistence is a measure of how long a
person can maintain his/her effort. Motivated individuals stay with a task long enough to
achieve their goal.

Douglas McGregor, an American social psychologist, proposed his famous X-Y theory in
his 1960 book 'The Human Side of Enterprise'. Theory x and theory y are still referred to

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commonly in the field of management and motivation, and whilst more recent studies have
questioned the rigidity of the model, McGregor’s X-Y Theory remains a valid basic principle
from which to develop positive management style and techniques.

McGregor maintained that there are two fundamental approaches to managing people. Many
managers tend towards theory x, and generally get poor results. Enlightened managers use
theory y, which produces better performance and results, and allows people to grow and
develop.

Theory X Management

According to McGregor, Theory X leadership assumes the following:

 Work is inherently distasteful to most people, and they will attempt to avoid work
whenever possible.
 Most people are not ambitious, have little desire for responsibility, and prefer to be
directed.
 Most people have little aptitude for creativity in solving organizational problems.
 Motivation occurs only at the physiological and security levels of Maslow's Needs
Hierarchy.
 Most people are self-centered. As a result, they must be closely controlled and often
coerced to achieve organizational objectives
 Most people resist change.
 Most people are gullible and unintelligent.

Essentially, theory x assumes that the primary source of most employee motivation is
monetary, with security as a strong second. Under Theory X, management approaches to
motivation range from a hard approach to a soft approach.

Theory Y Management

The higher-level needs of esteem and self-actualization are continuing needs in that they
are never completely satisfied. As such, it is these higher-level needs through which
employees can best be motivated. In strong contrast to Theory X, Theory Y leadership
makes the following general assumptions:

 Work can be as natural as play if the conditions are favourable.

 People will be self-directed and creative to meet their work and organizational objectives
if they are committed to them.
 People will be committed to their quality and productivity objectives if rewards are in
place that addresses higher needs such as self-fulfilment.
 The capacity for creativity spreads throughout organizations.
 Most people can handle responsibility because creativity and ingenuity are common in
the population.
 Under these conditions, people will seek responsibility.

Under these assumptions, there is an opportunity to align personal goals with organizational
goals by using the employee's own need for fulfillment as the motivator. McGregor stressed
that Theory Y management does not imply a soft approach.

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McGregor recognized that some people may not have reached the level of maturity assumed
by Theory Y and therefore they may need tighter controls that can be relaxed as the
employee develops.

XY Theory Management Application - Business Implications for Workforce

Motivation

If Theory Y holds true, an organization can apply these principles of scientific management
to improve employee motivation:

 Decentralization and Delegation - If firms decentralize control and reduce the

number of levels of management; managers will have more subordinates and
consequently will be forced to delegate some responsibility and decision making to
them.
 Job Enlargement - Broadening the scope of an employee's job adds variety and
opportunities to satisfy ego needs.
 Participative Management - Consulting employees in the decision making process
taps their creative capacity and provides them with some control over their work
environment.
 Performance Appraisals - Having the employee set objectives and participate in the
process of evaluating how well they were met.

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