Orientation Note

Descriptive Writing

Email – hello@edutap.co.in, M - 8146207241 1|P ag e http://www.edutap.co.in

 In the Descriptive Writing Component of Management Syllabus, we shall be giving you the
following components in each of the chapters

1) Fodder Material: It shall consist of some Quotes, standard definitions, and some Real-
life examples. The fodder material can be integrated in your answers which will
differentiate your answer from others and help you perform better in exam.
Remember, the Quality matters and there are no free lunches.

2) Mind Maps: Mind Maps are for Instant Revision before the exam. They are very
thorough and interactive. Last minute revision can help you score that 2 or 3 extra
marks that you might have been losing regularly due to lack of revision.

3) Model Questions and Answers: In this deliverable we shall be giving you some good
quality questions and their answers. This is for you to practice lot of questions and
become a pro in answer writing. Along with this, you will also get previous year
questions related to descriptive writing. At the end, some homework questions will be
given which are to be written by you and you only.

What is downloadable and What is Non-Downloadable?

Deliverable Downloadable or Non- Downloadable

Fodder Material Non-Downloadable
Mind Maps Downloadable
Model Questions and Answers Downloadable

The fodder material is not downloadable since the same can be revised through Mind-Maps.
Mind Maps are downloadable and can be printed.

Email – hello@edutap.co.in, M - 8146207241 2|P ag e http://www.edutap.co.in

Email – hello@edutap.co.in, M - 8146207241 1|P a g e http://www.edutap.co.in
Email – hello@edutap.co.in, M - 8146207241 2|P a g e http://www.edutap.co.in
 Introduction
This document consists of 4 sections

1) 10 Marker Questions: In this part we shall be giving you 10 marker questions.

These are supposed to be somewhat direct and easy as compared to 15 marker
questions

2) 15 Marker Questions: In this part we shall be giving you 15 marker questions.

These are supposed to be little complex or consisting of multiple sub questions or
may be an integrated question from concepts of different chapters

3) Previous Year Descriptive Questions: The previous year descriptive questions are
subdivided into two sections
a. 2021 Onwards: We shall cover all previous year questions asked in the exam
from 2021 onwards
b. 2007-2014: We shall cover all relevant previous year questions asked in the
exam between 2007-2014
I. Some questions from previous years might not be covered in any of the
chapter since they might not belong to current syllabus. The syllabus
earlier was different from the current syllabus.
II. Some questions from previous years might not be covered as they are
related to current affairs of that year which is not relevant now.
III. Moreover, some chapters have lot of previous year questions, in those
chapters we have given complete answers to some questions and for the
rest of the questions, the answer outline is given
c. The exam was conducted in objective pattern between 2015 and 2020. For
these years no subjective questions is there

4) Homework Question: There is one homework question for you to think and write.
The answer for this question will not be given by us.

Email – hello@edutap.co.in, M - 8146207241 3|P a g e http://www.edutap.co.in

 Other Guidelines

1. The answers given here are not to be crammed. They are not given from the
perspective of being perfect answers. No answer is a prefect answer. If we ask
500 people to write answers to these questions, then we will get 500 different
answers and we cannot decide which one is perfect answer. The answers given
here is to help you guide towards the approach to answer writing

2. The answers written here may exceed the word limit in some cases. But that is
done intentionally, so that you understand it better and in exam you can
further summarize that information to achieve the desired word-limit.

3. In certain answers, the content/points written may not be covered in the

notes/videos. But that is also done to make you realize that we cannot simply
be bookish in writing answers, rather some content/points need to be written
from our understanding of things. This is called the application part

4. We would recommend that questions to the answers should not be just read.
What you shall do is
a. For 2-3 questions, please write answer in your own words so that you get
practice for descriptive writing. Then try to match your answer with
answer given by us and try to self-evaluate
b. For the rest of the questions, try to make an outline as in what you will
write in this answer. Then try to match your outline with answer given by
us and try to self-evaluate

5. Please refer the videos on “Science and Art of Descriptive Writing” that have
been included earlier in the course. Those videos shall be watched again and
again to get better hold on answer writing

Email – hello@edutap.co.in, M - 8146207241 4|P a g e http://www.edutap.co.in

 10 Markers (400 Words)
Q.1) Discuss Herzberg’s theory of motivation and also bring out its limitation.

Introduction: Give brief idea about genesis or need of Herzberg theory.

Body: Explain Hygiene Factors and motivating factors with examples and also give its
limitation using separate headings.
Conclusion: Can conclude with utility of this theory in real life.

Answer
Fredrick Herzberg and his associates developed the MOTIVATION HYGIENE THEORY,
commonly known as the two-factor theory, in the late 1960s. Herzberg and his associates
conducted a research based on the interview of 200 engineers and accountants who looked
for 11 different firms in Pittsburgh area, U.S.A. Herzberg theory of motivation is based on 2
factors which are as follows:

1. Hygiene Factors: Hygiene factors are related to the external factors related to work.
For Example: Work infrastructure, salary, canteen facility, conveyance. These are also
called as maintenance factors which may not motivate people. They simply prevent
dissatisfaction and maintain status quo. Such factors do not produce positive results
but prevent negative results. If these factors are not there it will lead to job
dissatisfaction.
2. Motivational Factors: These factors are intrinsic in nature and are related to the job.
For Example: Corporates like Microsoft is known as a great paymaster to prevent
dissatisfaction but at the same time hygiene factors are balanced with motivators such
as satisfactory work, self-recognition, and challenging tasks.

Herzberg’s theory is appreciated on the ground that it provides an insight into the task of
motivation by drawing attention to the job factors which are often overlooked. Thus,
Herzberg’s theory has solved the problems of managers who were wondering why their
policies failed to motivate the employees adequately. However, this theory has some
limitations which are as follows.

Email – hello@edutap.co.in, M - 8146207241 5|P a g e http://www.edutap.co.in

 Critical analysis of theory:

1. Non-Conclusive: Herzberg study was limited to the engineers and accountants. The
critics say that this theory is not conclusive because of the limited set of people involved
in research. Professionals or the white-collar workers may like responsibility and
challenging jobs. But the general workers are motivated by pay and other benefits. The
effect of hygiene and motivational factors can be different for different entities. Hence,
theory sounds inconclusive in nature. For Example: Supervisor in mining industry can
give preference to safety conditions whereas production manager in IT industry can give
preference to innovative environment.
2. Methodology: Another criticism of this theory is directed at the method of research and
data collection. The interviewers were asked to report exceptionally good or
exceptionally bad job experience. This methodology is defective because such
information will always be subjective and biased.
3. Over Emphasis on Job Enrichment: This theory has given too much emphasis on job
enrichment and has totally ignored job satisfaction of the workers. He didn’t attach
much importance to pay, status or interpersonal relationships which are generally held
as great motivators. For Example: IAS topper Gaurav Agarwal find his first posting in
rural area more satisfying than his earlier job of investment banker, even if it does
involve work of very basic nature with respect to his authority & aptitude.
4. Ignored vital factors: Herzberg assumed a correlation between satisfaction and
productivity. But the research conducted by Herzberg stressed upon satisfaction only
and ignored productivity.
5. Limited parameters: No comprehensive measure of satisfaction was used. An employee
may find his job acceptable despite the fact that he may hate/object part of his job. For
Example: A guy doing job with good infrastructure and motivating environment may
find it dissatisfying if it is too far from his hometown.

Keeping in view all these points we can conclude that Herzberg’s theory has been widely
read and there can be few people who are not in agreement with these recommendations.
This theory provides valuable guidelines to the managers for structuring their jobs in order
to include such factors in the jobs which bring satisfaction and motivation at workplace.

Email – hello@edutap.co.in, M - 8146207241 6|P a g e http://www.edutap.co.in

 Q.2) “Money Holds the key to work motivation in modern business organizations”.
Discuss and give the role of non-financial incentives in motivation.

Approach
Introduction: Bring argument which can clear the context of the statement and can establish
the relation of money and motivation
Body: Can bring different aspects of how a money can motivate employees as per different
theories of motivation.
Conclusion: To make it broad, can link it with the role of non-financial motivators.
Answer
Money act as a motivator as it full fills the basic needs like food clothing & shelter.

According to Maslow theory of hierarchy of need, money can meet the lower order needs
like Physiological, Safety and Social needs of an individual but fails to meet higher order
needs like Esteem and Self Actualization.

Moreover, as per Herzberg's Two Factor Theory, money act as a hygiene factor, the absence
of which can lead to dissatisfaction, but its existence does not ensure a positive satisfaction.

Moreover, as per the Adam’s Equity theory, money acts as a motivator, only if it is provided
in adequate quantity in comparison to the performance.

So, money plays a limited role in motivating workforce in modern business organizations
and provides a scope for Non-financial incentives to play an important role along with it.

According to Maslow theory, Non-financial incentives like reward, recognition, praise etc.
leads to the fulfilment of higher order needs like Esteem and Self Actualization.

Also, as per Herzberg’s two factor theory, the existence of non-financial incentives like
responsibility, advancement, growth etc. act as motivating Factor and leads to positive
satisfaction.

Hence, money holds the key to work as a motivator to a certain extent/level, but the role of
non-financial incentives cannot be ignored in modern business organizations as we move up
the hierarchy. This can also be vindicated through example of Mr. N Narayan Murthy who
returned as Infosys Chairman in 2013 with an Annual compensation of only 1 rupee
because he was not motivated by money, rather it was something else that motivated him.

Email – hello@edutap.co.in, M - 8146207241 7|P a g e http://www.edutap.co.in

 Q.3) What is Motivation? What does McClelland’s theory of needs tell us about people’s
need?

Approach
Introduction: Define motivation/can use quotes also/ can use significance to make it broad.
Body: Explain different aspects of the McClelland theory and emphasizing on needs try to clarify
that how it leads to motivation.
Conclusion: Can link it with how this theory helps in real life through examples
Answer
Motivation is defined as the process that initiates, guides, and maintains goal-oriented
behaviours. Motivation is what causes us to act, whether it is getting a glass of water to
reduce thirst or reading a book to gain knowledge. McClelland's Human Motivation Theory,
also known as Three Needs Theory, tries to explain the process than an individual use in
deciding what is valuable to him. The theory states that every person has one of three main
driving motivators: the needs for achievement, affiliation, or power. These motivators are
not inherent; we develop them through our culture and life experiences.

According to McClelland’s Theory, People with diverse needs are motivated differently.
1. People with High need for achievement should be given challenging projects with
reachable goals.
2. People with High need for Affiliation perform best in a Cooperative environment.
3. People with High need for power should be provided with the opportunity to manage
others.

Theory also explains that people with need of Affiliation may not suit with the role in need
for Power and Vice Versa. Example: a strong need for affiliation undermines a manager's
objectivity, because of their need to be liked, and that this affects a manager's decision-
making capability.

For Example:

• Sachin Tendulkar having the need for achievement i.e., to excel in his batting left
captaincy (the need of Power) and that played a big role for his consistent performance
over such a long career
• Mother Teresa left the opportunity to lead a large family business empire (Power) and
rather served the community (need for affiliation)

Email – hello@edutap.co.in, M - 8146207241 8|P a g e http://www.edutap.co.in

 Q. 4) “Motivation is the Core of Management”. Discuss.

Approach
Introduction: Give brief definition of motivation or can quote its significance
Body: Give arguments on how and why motivation is the core of management.
Conclusion: Link it with the demand of the question, give argument so that it should give the
testimony of the given statement.

Answer
According to Mary Parker Follett, “Management is the art of getting things done through
people”.

In order to get the things done management uses motivation as a process of influencing
employee’s behavior.

Management has the following three Objectives:

1) Organizational Objective: Higher Performance is must for an organization. Managers use

various motivational programs to encourage employees to achieve their maximum potential
leading to improved organizational performance.

2) Social Objectives: Organizations consider societal needs in term of problems faced by

society and how those problems can be solved. It requires innovation, creativity, and an
excellent teamwork to come up with out of the box solutions. Motivation fosters creativity
and innovation leading to some of the best solutions such as development of NANO – the
cheapest car in the world

3) Individual/ Personal Objective: Satisfaction of individual employees is one of the

objectives of management. It includes providing decent remuneration, human friendly
policies, job security, recognition, and achievement. A motivated employee will perform
better in a job and hence he will get job satisfaction through increased performance

Thus, Motivation is at the core of management in fulfilling its objectives and as in the
words of Badu- “Motivation is a human psychological characteristic that add to a person’s
degree of commitment. It is the management process of influencing employees’
behaviour”.

Email – hello@edutap.co.in, M - 8146207241 9|P a g e http://www.edutap.co.in

 Q.5) What is motivation? How is it important in managing organization?

Approach
Introduction: Define motivation with example and set context for its importance in an
organization.
Body: Bring arguments on how motivation helps in managing corporate world. Can use
different dimensions of syllabus to generate points.
Conclusion: Can end with concluding remark.

Answer
Motivation is defined as the process that initiates, guides, and maintains goal-oriented
behaviors. Motivation is what causes us to act, whether it is getting a glass of water or to
reduce weight or reading a book to clear RBI Grade B exam. In everyday usage, the term
motivation is frequently used to describe reasons for human actions.
The formal definition of motivation is that it is willingness of person to make intense and
persistent efforts to achieve desired goals. For Example: Students put persistent efforts for
2 years to clear IIT entrance with the help of motivation that they will get high package after
passing out from IITs.
Motivation per say is important in every walk of human life. However, it is widely used in
the context of management in the industries/organizations. In management science it is
considered as an important tool to manage any organization.

How it helps in managing organization:

1. Boosting organizational morale: Motivation helps in boosting employee’s confidence

and keep them motivated towards daily work and monthly targets. Motivated work
force results in high organizational morale. For Example: Cognizant follow practice of
sending gifts to employees on their birthday. This act shows the love and care that
company puts in their employees. This leads to an emotional connect with the
company which boosts organizational morale.
2. Enhanced resource use efficiency: Motivated employees are enthusiastic at workplace
which can make them innovative towards using raw material, machineries and
production processes. Any error/mistake and loophole in the system is tapped at ear ly
stage which improves resource use efficiency. For Example: Henry Ford cut the time
taken to assemble a single car from 12 hours to just 90 minutes. This could be possible

Email – hello@edutap.co.in, M - 8146207241 10 | P a g e http://www.edutap.co.in

 due to employees being motivated towards monetary benefits coming from profit due
to reduced man hour.
3. Interdepartmental co-ordination: It is the sign of Healthy and cordial work culture.
Adequate level of motivation enhances the process of co-ordination which is the most
crucial thing in an organization behavior and management science. It reduces
bottlenecks in daily work and improves operational efficiency. For Example: Bajaj Auto
organizes interdepartmental sports events to improve interpersonal relations.
Encouraging sportsman spirit is one of the healthy ways to make people interact with
each other. This leads to better inter departmental assistance too.
4. Accepting organizational change: An organization must keep changing with the
changing environment, but many a times faced with a resistance to change. However,
if the employees are properly motivated, they accept, introduce, and implement these
changes keeping the organization on the right track of progress. For Example: Dena
and Vijaya Bank merger into Bank of Baroda was accepted by its employees because
they were motivated by chances of reduced customer load due to increased number of
branches under the ambit of Bank of Baroda. It will also create space for transfer of
employees in the branch which are nearby their hometown.
5. Low Employee Turnover: Welfare activities by corporates keeps employee motivated
which leads to loyalty of workforce. Integrity and commitment shown by motivated
employees results into better healthy work culture and operational efficiency. Thus,
helps in managing organization better. For Example: In TATA motors, employees serve
longer to the company. Attrition rate is minimal which reduces employee turnover of
the organization.
Thus, motivation leads to better employee efficiency which results into better
organizational output. Hence, motivation is an important factor in the management of an
organization.

Email – hello@edutap.co.in, M - 8146207241 11 | P a g e http://www.edutap.co.in

 Q.6) What is reinforcement theory of motivation? What are the reinforcements used by
manager to motivate subordinates?

Approach
Introduction: Give brief idea about the reinforcement theory like its background, thinkers
etc.
Body: Need to explain reinforcement theory with its component and relative examples.
Also bring out different reinforcements generally used in corporate world.
Conclusion: Can conclude with the significance of this theory from managerial perspective

Answer
Reinforcement theory is the process of shaping behavior by controlling the consequences of
the behavior. In reinforcement theory a combination of rewards and/or punishments is
used to reinforce desired behavior or extinguish unwanted behavior. This theory is based
on BF Skinner’s behavior modification model.

As per Reinforcement theory, people’s behavior which has positive consequences is

repeated while the behavior which has negative consequence is not repeated. If any
behavior is to be increased, then it can be done so by providing reinforcement. The
reinforcement is of 2 types:

1. Positive reinforcement: This implies giving a positive response when an individual

show positive and required behavior. For Example: Employee of the year award in
Sandvik for achieving sells target.
2. Negative reinforcement: Negative reinforcement is a method that can be used to hel p
teach specific behaviors. With negative reinforcement, something uncomfortable or
otherwise unpleasant is taken away in response to a certain stimulus. For Example: If
you want an employee to be punctual then company may close breakfast 15 min
before office time so that employee come before time.

A manager has many duties. One of the most important ones is to motivate and inspire
employees. Only motivated staff members will perform at their best and be maximally
productive. Here are some reinforcements through which managers can motivate their
employees.

1. Praise: People want to know if they have done a good job. Positive feedback will make
an employee want to continue their performance in future tasks. For Example: Bajaj

Email – hello@edutap.co.in, M - 8146207241 12 | P a g e http://www.edutap.co.in

 Group has culture of annual event where employees are appreciated and rewarded for
their contribution to the organization.

2. Ensuring autonomy: People are happier and more motivated if they feel they are in
charge of their own actions. Your workers will enjoy their jobs more (and do better
work) if they have more freedom. For Example: Innovative companies like Google
respects the value of creative thinking and generally gives full autonomy in terms of
working hours and use of resources to employee to complete the given task.

3. Treat them with respect: Just treating your employees like they are intelligent adults
can help. Simply acting as if your workers are competent, sensible, and trustworthy
can be a powerful reinforcement.

4. Allow honest criticism and complaints: Allowing an employee to speak his mind can
bring positive changes at workplace. Subordinates will be much happier and
productive if you let them voice their views and complaints openly and plainly. For
Example: Employee grievance redresser portal at IOCL helps employees to register
their grievances and get it resolved.

There are some negative reinforcements also which are used by managers to remove
undesired behavior.

1. Nagging Your Employees: Constantly being reminded to be more productive, often seen
as nagging by employees. It is kind of a negative reinforcement technique. It may be used
intentionally or unintentionally; it creates a condition in which the employees are
subjected to pressure to perform better. When they reach the desired productivity level.
For Example: In service-oriented companies like Blue Dart, managers take help of nagging
and follow up to ensure that employees are not investing time in activities other than
delivering couriers and daily targets are being achieved.
2. Leniency to improve efficiency: For instance, at a manufacturing company, employees
must attend work five days a week, eight hours a day. Sometimes people feel lethargic to
work. In such cases, to encourage greater productivity, a manager might reduce work
hours for the final week of the month. If employees meet a production goal before set
time limit, they won't have to spend as much time at work. This acts as a negative
reinforcement.

Email – hello@edutap.co.in, M - 8146207241 13 | P a g e http://www.edutap.co.in

 Thus, a manager can use such reinforcements to bring out the best from employees. Being
aware of such practices will help manager to work for organizational goals in better way.

15 Markers (600 Words)

Q.1) What are some process theories of motivation? How applicable are they today?

Approach
Introduction: Give brief idea about process theories of motivation
Body: Discuss (what, why & how aspect) these theories are applicable in real world.
Examples will add value.
Conclusion: Can conclude with the broad aspects/utility/significance of the process
theories.

Answer
The psychological and behavioral processes that motivate a person to act in a particular
way are referred to as process theories of motivation.

Vroom’s Expectancy theory and Adam’s Equity theory are some of the process theories.

Vroom’s Expectancy Theory: Expectancy theory predicts that employees in an organization

will be motivated when they believe that:
1) Putting in more effort will yield better job performance- Expectancy
2) Better job performance will lead to organizational rewards, such as an increase in salary
or benefits- Instrumentality
3) These predicted organizational rewards are valued by the employee in question- Valence
The implication of Vroom's expectancy theory is that people change their level of effort
according to the value they place on Expectancy, Valence, and Instrumentality. So, it is
relevant in the sense that Managers can apply the Vroom theory in an organization to
provide proper value to all the three factors. This can be done in following ways
1) To Increase the Expectancy level, the managers should make sure that the work
assigned to the employees is as per their skill set
2) To enhance the performance-outcome tie (Instrumentality), managers should use
systems that tie rewards very closely to performance

Email – hello@edutap.co.in, M - 8146207241 14 | P a g e http://www.edutap.co.in

 3) Managers also need to ensure that the rewards provided are deserved and wanted
by the recipients so that employees have high valence for the assigned task

But expectancy theory works on perceptions of individuals. So even if an employer thinks

that they have provided everything appropriate for motivation like good salary and perks
but if the person is not much interested in monetary aspects but is rather interested in
challenging work then he/she may not be motivated by the same.
For Examples:
Vroom Theory:
1) As per recent report by Goldman Sachs, companies have increased their training
expenditures by 30% on an average in last 3 years to make employees better equipped
to do their Tasks (Expectancy increase)

2) IBM recently announced innovative rewards for top performers like extra work from
home hours, dinner with CEO, Spa appointments to meet the changing preferences of
younger generation (Valence increase)

Adam’s Equity Theory: Equity Theory in business introduces the concept of social
comparison. Employees who perceive inequity will seek to reduce it either by directly
altering inputs and/or outcomes. It is relevant as managers can use it to understand why
people are so strongly affected by the situations of colleagues, friends, partners etc. It also
helps managers understand why pay and conditions alone do not determine motivation
because even good pay and conditions may lead to dissatisfaction if colleagues or so-called
referents are getting more pay and better conditions. But Equity theory is built-on the
perception of people of inputs and outcomes of themselves and others and hence may be
incorrect. This theory also does not consider that individuals have different preferences for
equity and thus react in different ways to perceived equity and inequity i.e., not all people
feel demotivated when they are under-benefitted.
For Example
1) Article 39 of Indian Constitution says: Equal Pay for Equal Work.
2) As per HBR report in 2017, 15% of the employees in Top 100 companies by market
capitalization left their companies because they felt that they were not being paid in
line with their peers although they were exerting the same amount of effort.

Email – hello@edutap.co.in, M - 8146207241 15 | P a g e http://www.edutap.co.in

 Q.2) Explain equity theory of motivation and discuss how it impacts organization.

Approach
Introduction: Give brief details of equity theory.
Body: Can bring various dimensions of equity theory like equity norm and social comparison.
Then bring out corporate world implications of the equity theory.
Conclude: Can conclude with how it is useful for manager to run organization.

Answer
The concept of equity refers to the comparisons that employees often make between
themselves, their co-workers, and also with people from other firms, in terms of inputs and
outcomes. Equity Theory fathered by John Stacy Adams in 1963. The essence of this theory
is related to the principle of fairness and balance.

According to Adams, people judge the fairness of their work situation in 2 ways

1. Equity Norm: This refers to the comparison of the efforts that they contribute towards
given task and the reward/outputs that they receive from it. Inputs are efforts, hard
work, time of the employee and output can be the salary, appreciation, leaves,
promotion etc. If inputs and output are not same among equally placed employees, they
feel demotivated due to inequity at workplace.
2. Social Comparison: Employees determine what their remuneration should be after
comparing their inputs and outcomes with those of their co-workers from the same
company or that from other companies. For Example: comparison made by production
supervisor from assembly department to production supervisor of welding department.
They both work inside the plant in same working conditions but if there is disparity in
salary and treatment, it impacts their mind-set negatively which affects the work
culture.

How it impacts organization:

1. Preventing Disparity: Higher compensation to senior staff is understandable. However,

there should be some range of difference between lower and higher-level employee.
Equity theory helps to take account of this dimension. Thus, it enables human resource
department to prevent sense of discrimination among employees. For Example: Vishal
Sikka, former CEO Infosys was a lateral entrant and used to draw salary in crores. Such
appointments trigger sense of disparity among long serving stalwarts of company.

Email – hello@edutap.co.in, M - 8146207241 16 | P a g e http://www.edutap.co.in

 2. Managing Perception: Many time employees find their performance better than their
colleagues and rewards as inequitable. Such perception regarding input and output
needs to be taken care by managers to avoid situation of jealousy, hatred, and
demotivation.
3. Ethical corporate governance: Equity theory have set the foundation of organizational
justice. It prescribes to ensure distributive justice while giving rewards for
performance. It also calls for procedural justice which tells us that corporate should
ensure equitable procedure to motivate employees. Adhering to such ethical practices
will lead to social branding and high employee morale. These things will reflect in
company sell and employee output
4. Conflict Resolution: Inequity at workplace demotivates employees which can create
conflict between employer and employee. Conflict at workplace will hamper
operational efficiency and profit of the company. Hence, equity at workplace will help
in conflict resolution at workplace.
5. Ensuring Operational Efficiency: Employees who perceive inequity will seek to reduce
it, either by directly altering inputs and/or outcomes, or leaving the organization. This
will impact production of the organization. Maintaining equity at workplace managers
can prevent such losses.
6. Healthy Interpersonal Relation: Equity at workplace will encourage good human
relations among workforces. Co-operative environment at workplace leads healthy
work culture which is most important for organization to grow. Inequity spreads
jealousy, which is not good for organizational interest. For Example: Managers and
workers eat at same time in same canteen at BAJAJ AUTO. It gives feeling of equity to
workers and encourage better relation among managers and workers.
7. Employee Loyalties: Ensuring Equity at workplace boost morale of workforce.
Employees trust in management and leads to loyal human resource. Trust between
management and workforce is good for organization. For Example: Equitable
treatment given to employees in TATA SONS ensures their best inputs which help an
organization to prosper.
8. Cognitive diversity in decision making: Equity at workplace will allow discussion
among people placed at various level. It will bring diversity of opinion, skills, and
knowledge in working. Without equity, even the most diverse company will have a
one-dimensional leadership team in charge of making decisions. For Example: A
company which takes opinion of all the department heads (irrespective of their
seniority) while launching new product bring out discrepancy if any. Such issues even
at minor level will help organization to improve its product.

Email – hello@edutap.co.in, M - 8146207241 17 | P a g e http://www.edutap.co.in

 9. Targeted upskilling for diverse workforce: A company is bound to have varying levels
of education, skills and socioeconomic backgrounds. Without focus on equity, the
same learning plan would apply to all employees. As a result, several talented
individuals would fail to reach their full potential which may hamper organizational
interest. So, equity helps in targeted upskilling to ensure optimum output from
workforce. For Example: Mukand Steel, a Bajaj Group of Company, designs training
module as per the requirement of employee. Most of the time it is different for
employees at same rank and same department.

Thus, it should be easy for all managers and HR professionals to realize that equity and
fairness are two of the most vital aspects that ensure the success of a company. If these
are not followed, then low levels of employee’s motivation can ruin organization.

Q.3) “Non-financial incentives are as strong motivators as financial ones.” Examine the
statement in the context of various financial and nonfinancial incentives.

Approach
Introduction: Clear the context of the question in introduction itself by explaining the crux of
the question.
Body: Bring out arguments of various thinkers of motivation to examine the proposition.
Conclusion: Give concluding remark in line with the arguments which can convey the result of
the examination under consideration (in this case financial and non-financial incentives)

Answer
Every employee certainly appreciates more money, but money does not buy happiness, nor
does it buy employee loyalty. On the other hand, Non-financial incentives inspire and
engage employees in ways that money is incapable of doing. So, the comparison between
financial and non-financial incentives swings both ways and needs to be examined on the
basis of management techniques prescribed by management philosophies.

Maslow’s argument in comparing financial and non-financial incentives:

As per Maslow, financial incentives fulfill lower order needs. This refers to the salary to
manage household expenses, car to ensure mobility and comfort of the family, house to
lead comfortable life. However, Maslow’s theory of motivation also suggests that after
certain time once the lower order needs are fulfilled an individual does not get motivated

Email – hello@edutap.co.in, M - 8146207241 18 | P a g e http://www.edutap.co.in

 by financial incentives. Higher order needs like self-esteem and self-actualization are
activated when an employee enters into seniority phase.

For Example: Arundhati Bhattacharya, former SBI Chairman was motivated by the
handsome salary, comfortable working conditions, and various allowances in the beginning
of her career. But, as she climbed up the ladder, she was least concerned about money and
was motivated by challenging assignments, powerful designation, and self-satisfaction. This
shows how same person can have different motivating factors at different time in life.

Vroom’s Take on Motivators:

As per the philosophy of Vroom, employee is motivated by Expectancy, Instrumentality and

Valence. This valence which refers to the anticipated satisfaction from reward. Vroom also
argues that, the value that an individual place on reward depends on needs, goals and
attitude of an individual. Based on this argument, some employee can get motivated by
salary hike or promotion and some get motivated by best employee award which can bring
him/her recognition and respect in the organization. For Example: Junior Manager,
Marketing in Hyundai Motors is motivated by salary hike. However, his boss may not be
motivated by money but by authority, target achievement and recognition by country head.

Thus, as per Vroom’s theory, comparison between financial and non-financial motivators,
their efficacy will be decided by Individual Perception.

Herzberg View on motivation:

As per Herzberg, financial incentives act as hygiene factors which can prevent an employee
from dissatisfaction but may not motivate him/her. However, motivating factors like work
satisfaction, recognition can motivate employee but may not keep him satisfied. Thus, as
per Herzberg, both financial and non-financial incentives play important role in balancing
motivation and satisfaction among employees.

Adam’s stance on the comparison:

Adam’s equity theory says that employees get motivated by both, the financial and non-
financial incentives. However, the moment he compares his incentive with the one who is
placed at equal hierarchy in same organization his motivation gets affected.

Even if a person is getting best possible promotion/recognition/salary, he is vulnerable to

get demotivated if compares himself with comparable human being in the society in which
he lives. Thus, the attitude of comparison and greed of humans will have significant bearing
on the motivation level of an individual.

Email – hello@edutap.co.in, M - 8146207241 19 | P a g e http://www.edutap.co.in

 Empirical evidence:

McKinsey & Company report in 2009, shows that non-financial incentives were rated as
more powerful motivators. However, sample set for such survey is challenged on various
grounds. Level of motivation depends on various factors such as

1. Socio Economic Background: Employee who come in Audi to office cannot be

motivated by salary hike and a person who don’t have house to live cannot be
motivated by recognition and appreciation.
2. Industry Type: IT industry people are ready to compromise salary if they get little
more peace of mind. Whereas people in government job can aspire for better salary.
3. National Culture: Countries also decode the level of motivation and motivating
factors. People in Nordic countries have limited population. Social infrastructure is
strong there which reduces the out-of-pocket expenditure. Hence, people may not
get that much motivated by financial incentives. Whereas countries like India,
Pakistan, people have number of expense (health, local bus, petrol, house EMI, car
EMI, parent medication, school fees etc.). Financial motivator plays major role in
developing and poor countries.

So, comparison between financial and non-financial motivators shows that both are equally
good and varies as per individual need. A manger must identify the need of the employee to
decide right kind of reinforcement.

Q.4) “There are various contemporary theories of motivation.” How can these theories be
integrated?

Approach
Introduction: Set the context of the question in introduction which will help you to set the tone
of arguments in body of the answer.
Body: Bring arguments on how various theories of motivation complement each other/ work in
tandem.
Conclusion: Can end with simple concluding remark about the proposition asked in question.

Answer
Contemporary theories of motivation attempt to explain how the process of generating
motivation works for an individual. Different theories clarify in different ways, however the

Email – hello@edutap.co.in, M - 8146207241 20 | P a g e http://www.edutap.co.in

 theme of all the theories is somewhere interconnected. Thus, integration of these theories
to use them in practical life can give enhanced results.

1. Vroom’s Expectancy Theory - Adam’s Equity Theory:

Vroom’s expectancy theory is based on the premise that an individual work hard if he
thinks that the task at hand can be completed by putting effort and such effort will bring
desired performance. A hard-working employee definitely gets reward (Valence) after
giving desired performance. But the moment he compares his Valance with those of
others and if an employee finds it inequitable, he/she may find himself demotivated. So,
if a company really wants to motivate employees, it should take care of valence an d its
equity both.

For Example: IOCL employees even in bad economic situation get raise in consistent
with the prevailing inflation rates. However, if certain employees are given more salary
hike, then it can lead to demotivation due to inequity.

This shows that Vroom’s theory and Adam’s equity theory work in tandem and needs
to be used in an integral manner.

2. Vroom’s Theory and Self Efficacy Theory:

Vroom’s expectancy theory says that expectancy and instrumentality depend on the
self-efficacy of an individual. On the other hand, self-efficacy theory also emphasizes on
the self-belief to execute certain task. For Example: If RBI grade B mains is going to be
conducted in 15 days, then if self-efficacy of an individual is high, he will be motivated to
put his effort to achieve right performance i.e., clearing mains.

3. Reinforcement Theory – Adam’s Equity Theory:

Corporates do design rewards system based on certain parameters. Generally, company

wants to encourage optimum performance, punctuality, ethical behavior at workplace.
To ensure this financial and non-financial rewards (reinforcements) are distributed.
However, from the perspective of management, certain employee can be reinforced
with more salary hike due to his skillset, attitude and new initiatives which are in the
interest of organization. Some employees may find such reinforcements as
inequitable.

Email – hello@edutap.co.in, M - 8146207241 21 | P a g e http://www.edutap.co.in

 That’s why designing reward system in an organization should be cross checked from
the lens equity theory. Some exceptional case may not affect employee morale. But, by
enlarge, reinforcements should take care of equity in an organization. Thus,
reinforcement theory and Adam’s equity theory need to be integrated in their
application in real life.

4. Vroom’s Theory and Reinforcement Theory

As per Vroom, individual instrumentality will depend on the degree to which a person
believes that he will get reward. Hence, reward system (reinforcements) should be in
consistent with the performance of an individual. On the other hand, reinforcement
theory also says the same thing. If you want to encourage certain behavior, action,
attitude, give appropriate reinforcements to strengthen it. Thus, Vroom theory and
reinforcement theory complement each other.

5. Goal Setting Theory – Job Characteristic Model:

Employees who are ambitious are driven by the need for achievement. They set goal for
themselves and follow it to ensure self-improvement. Such people feel motivated if they
are given opportunity to grow with ambitious goal. However, setting everyday goals for
ourselves may not be possible in long run. On the other hand, if goals are set by
organizational itself which is inculcated in its operations can help to motivate
employees. Thus, designing jobs in such way that goal setting is part of daily work can
keep employees motivated. Job characteristic model by Hackman and Oldham
prescribes to design the job in such a way that it involves skill variety, autonomy to
work, bringing prestige/identity to the job. This will automatically create motivation for
employees. For Example: Neilson, which is US based research firm, designs the job in
such way that aggressive goal setting is the part of job. It automatically creates culture
of target achievement which motivates employees.

Thus, integration of job characteristic model and goal setting theory can give better
result in motivating employees to fulfill organizational goals.

6. Goal Setting Theory and Self Efficacy Theory:

Goal-setting theory and self-efficacy theory complement each other. Employees whose
managers set difficult goals for them will have a higher level of self-efficacy because
setting difficult goals for people communicates your confidence in them. Giving

Email – hello@edutap.co.in, M - 8146207241 22 | P a g e http://www.edutap.co.in

 ambitious goals is generally given to those who possess ability to achieve the m. Even if
they don’t have ability, people with right attitude inculcate such capability through
practice. Thus, goal setting should consider the factor of self-efficacy. Both theories
work in an integral way to motivate people.

Thus, from above arguments it is clear that Contemporary motivation theories are
integral part of each other in some way or other.

Q.5) Explain goal setting theory and elaborate factors which affects/influences goal
setting in real life.

Approach
Introduction: Start with the foundation of goal setting theory and throw light on its component.
Body: Bring out various factors at various level which affects goal setting in real life.
Conclusion: Can conclude with the utility of the theory which can convey the broader objective
of the goal setting theory.

Answer
Goal setting theory is given by Edwin Locke. This theory states that goal setting is essentially
linked with task performance. It states that specific and challenging goals along with
appropriate feedback contribute to higher and better task performance.

Goal setting theory prescribes procedure to ensure better employee/organizational

efficiency. Parameters which should be followed to ensure better performance are as
follows.

The Parameters of Goal Setting:

1. Clarity in Goal Setting: Goals should be specific, realistic and ambitious enough which
can trigger motivation. The more specific the goal, the more explicitly performance
will be affected.
2. Goal Difficulty: Goals should be challenging and ambitious. Working out of comfort
zone can bring highest potential in an individual and also within organization.
3. Regular Feedback: Regular assessment of efforts of an individual or an organization
helps to keep eye on performance. Any divergence from set goal can be rectified
timely. This helps in enhancing goal-oriented output.

Email – hello@edutap.co.in, M - 8146207241 23 | P a g e http://www.edutap.co.in

 For Example: Union Road construction minister set difficult goal of building highways
at the rate of 40 Km per day. He is close to achieve the target through constant
monitoring and ensuring adequate supply chain support. Regular follow up and
feedback helped the ministry to identify loopholes and to rectify it.
However, these goal setting parameters are the torchbearers to improve performance
through goal setting. As per Edwin Locke following factors will influence the performance of
these parameters

1. Commitment Towards Goal: Degree of commitment towards goal will decide the
result. High commitment will make individual/organization to work hard and put in
extra efforts to achieve the set targets. For Example: Reliance JIO was committed to
capture the telecom market, they distributed free sim and 4G data initially even if it
cost them in crores. Commitment brings ability to take risk in business/task in hand.

2. Self-Efficacy: Self- Efficacy is the belief or self-confidence, that he/she can perform
task. It has significant bearing on goal setting and efforts put in to realize the set goals.
For Example: Dhirubhai Ambani has set up Reliance industries with negligible
resources. His self-belief helped him to work hard and take decisions which ultimately
resulted into global conglomerate.

3. National Culture: The national culture can be a factor in goal setting as well as in
achieving these goals. In developing countries moderate goals are preferred rather
than difficult goals. For Example: For African country, survival, poverty alleviation are
the goals on priority, whereas US, Europe are setting goals to reach on mars. Thus,
national culture and socio-economic condition has huge bearing on goal setting and
their performance.

There are multiple factors which influence goal setting at different level which are
individual level, organizational level and national level.

Individual Goals:
1. Personality and Values: Individual goals are subjective in natures and guided by
individual personality. What one chooses as his goal depends on his mindset and
decision execution capability. For Example: Some student set goal to clear RBI grade B
whereas some may choose to go for SBI clerk. Setting high goals motivates individual
to work hard and achieve goals.

Email – hello@edutap.co.in, M - 8146207241 24 | P a g e http://www.edutap.co.in

 2. Qualification: Individual tend to set goals based on their education level. Goal setting
as per the highest capability according to one’s educational capability can yield better
results. For Example: Commerce graduate setting goal to clear CA/RBI grade B/ Indian
economic service exam, whereas engineering graduate may aspire to work with
google.

Organizational goals:
1. Vision and Mission Document: Vision and mission of company have huge bearing on
its daily, weekly and monthly targets. For Example: NABARD’s vision is to ensure rural
prosperity, thus they set goals for yearly expenditure on rural infrastructure.
2. Legal Framework: Laws of the land have significant bearing on organizational goals.
There are some binding rules which has to be followed by organizations and thus
become part of the organizational goals. For Example: Expenditure under CSR norms,
corporate need to spend 2% of their annual average profit of last 3 years.

National Goals:

1. Constitution: It guides the executive action of the country. It sets the principles to be
followed in public affairs. These principles make national government to set the goals.
For Example: Goal to alleviate poverty to bring equality, goals to disburse mudra
loans, goals to achieve labor welfare

2. Demography: Population attributes determine the goals of the country. It guides the
actions and policies in several domains. For Example: Poor sex ratio is the
demographic attribute that’s why improving sex ratio is the goal set by Punjab and
Haryana.

Thus, goal setting process is determined by several factors. Art and skill to set goals
and attitude of striving to achieve the goals helps an organization/individual to
improve.

Email – hello@edutap.co.in, M - 8146207241 25 | P a g e http://www.edutap.co.in

 Previous Year Questions – 2021 Onwards
Please be informed that in this section we will discussing all the descriptive Previous Year
Questions (PYQs), all the questions appearing in this section has a tag of the year in which
that question was asked. If there is no question in this document on any exam from a
particular year or years, it means that no question was asked for that exam in that
year(s) or exam itself was not conducted in that year.

There was no question asked from motivation in 2021 and 2022

Previous Year Questions – 2007- 2014

There was no question asked from motivation from 2007 to 2014

Homework Question
Q. 12) What are the five categories of motivational needs as described by Maslow? Give
an example of how each can be satisfied. Discuss the criticism of Maslow given by
Alderfer theory. Also discuss the implication of Maslow’s theory for managers. (15 Marks,
600 words)

Email – hello@edutap.co.in, M - 8146207241 26 | P a g e http://www.edutap.co.in

Email – hello@edutap.co.in, M - 8146207241 1|P a g e http://www.edutap.co.in
Email – hello@edutap.co.in, M - 8146207241 2|P a g e http://www.edutap.co.in
 Introduction
This document consists of 4 sections

1) 10 Marker Questions: In this part we shall be giving you 10 marker questions.

These are supposed to be somewhat direct and easy as compared to 15 marker
questions

2) 15 Marker Questions: In this part we shall be giving you 15 marker questions.

These are supposed to be little complex or consisting of multiple sub questions or
may be an integrated question from concepts of different chapters

3) Previous Year Descriptive Questions: The previous year descriptive questions are
subdivided into two sections
a. 2021 Onwards: We shall cover all previous year questions asked in the exam
from 2021 onwards
b. 2007-2014: We shall cover all relevant previous year questions asked in the
exam between 2007-2014
I. Some questions from previous years might not be covered in any of the
chapter since they might not belong to current syllabus. The syllabus
earlier was different from the current syllabus.
II. Some questions from previous years might not be covered as they are
related to current affairs of that year which is not relevant now.
III. Moreover, some chapters have lot of previous year questions, in those
chapters we have given complete answers to some questions and for the
rest of the questions, the answer outline is given
c. The exam was conducted in objective pattern between 2015 and 2020. For
these years no subjective questions is there

4) Homework Question: There is one homework question for you to think and write.
The answer for this question will not be given by us.

Email – hello@edutap.co.in, M - 8146207241 3|P a g e http://www.edutap.co.in

 Other Guidelines

1. The answers given here are not to be crammed. They are not given from the
perspective of being perfect answers. No answer is a prefect answer. If we ask
500 people to write answers to these questions, then we will get 500 different
answers and we cannot decide which one is perfect answer. The answers given
here is to help you guide towards the approach to answer writing

2. The answers written here may exceed the word limit in some cases. But that is
done intentionally, so that you understand it better and in exam you can
further summarize that information to achieve the desired word-limit.

3. In certain answers, the content/points written may not be covered in the

notes/videos. But that is also done to make you realize that we cannot simply
be bookish in writing answers, rather some content/points need to be written
from our understanding of things. This is called the application part

4. We would recommend that questions to the answers should not be just read.
What you shall do is
a. For 2-3 questions, please write answer in your own words so that you get
practice for descriptive writing. Then try to match your answer with
answer given by us and try to self-evaluate
b. For the rest of the questions, try to make an outline as in what you will
write in this answer. Then try to match your outline with answer given by
us and try to self-evaluate

5. Please refer the videos on “Science and Art of Descriptive Writing” that have
been included earlier in the course. Those videos shall be watched again and
again to get better hold on answer writing

Email – hello@edutap.co.in, M - 8146207241 4|P a g e http://www.edutap.co.in

 10 Markers (400 Words)

Q.1) Discuss the important communication skill required by Supervisors and Managers.
Approach
Introduction: Explain importance of communication with a quote and the significance of
communication skills for manager and supervisor

Body: Bring out various verbal and non-verbal schemes and give argument on why and how it is
important.

Conclusion: Conclude with importance of communication required by a Manager and

Supervisor.

Answer

According to famous, Management consultant and Author "PETER DRUCKER" - “The most
important thing in communication is to hear what isn’t being said.” It highlights the
importance of communication both in business and in our everyday lives. Good
communication is the key to forming successful relationships both professionally and
personally.

Why are effective communication skills important for Managers and Supervisors?

1. Giving feedback to employees: It is the responsibility of managers to provide regular

feedback to employees based on their behavior and performance. If the
communication provided by the manager is concise and clear then employees can
perform better and behave properly in an organizational setup. Example: The king of
TV-streaming services, Netflix has long been known for its thriving, feedback-focused
company culture. The term “feedback” is mentioned 11 times on its “Netflix Culture”
recruiting page.
2. Building teams: Effective communication skills for managers also help build teams.
For example, managers can use their communication skills to set rules, define
employee roles, encourage employees to take their own decisions, and obtain goals
for their teams. Example: In 2012, Google embarked on a quest to discover how to
build the “perfect team.” The experiment, led by Abeer Dubey, a manager in
Google’s People Analytics division, was called “Project Aristotle.” The biggest

Email – hello@edutap.co.in, M - 8146207241 5|P a g e http://www.edutap.co.in

 learning from that experiment was that Transparent communication is key to
building teams.
3. Conflict resolution: Managers need to have excellent listening abilities if they were
to improve their communication skills. Managers who tend to listen better to their
employees gain confidence from them and let them know that their opinions too
count. This also helps employees to discuss all their problems freely that have been
affecting their performances. Example: The way the two sons of the late Dhirubhai
Ambani were fighting over ownership and control of Reliance Industries and their
mother had solved the conflict by acting as a mediator and enabling the
communication between them, is a typical example of conflict resolution.
4. Relationships with other departments: Effective communication skills for managers
are also important when the employees are required to deal with other departments
in an organization, in one way or the other. More often than not, managers are
required to interact with employees belonging to other departments for exchanging
ideas and information. When a manager has excellent communication skills it helps
build trust across various departments and enable them to work towards achieving a
common goal.

Important communication skill required by the Manager and Supervisors

Effective Managers and Supervisors need to master all forms of communication including
written, verbal and non-verbal.

Verbal communication
A. Oral communication skills:

1. Listening: It helps managers to understand and grasp issues related to working,

processes, and day-to-day troubleshooting. The good listening skill of the manager
will help to identify issues down the line so that he can deal with them through the
appropriate measures. Example: General Electric has placed “humble listening” as
one of its four key desirable characteristics for its leaders. Mark Zuckerberg, the
Facebook CEO, has been touted as an excellent listener – and his listening skill has
been earmarked as one of the key characteristics that have enabled him to learn,
grow, and thrive as an entrepreneur.
2. Speaking: Good speaking skills of a manager can motivate subordinates and workers
to the required level. Example: Prime Minister Narendra Modi is an exceptional
speaker and his speeches would make you a fan of his public speaking irrespective of
your political views.

Email – hello@edutap.co.in, M - 8146207241 6|P a g e http://www.edutap.co.in

 B. Written communication skills:

1. Letter Writing: A manager has to write letters to the seniors from other
organizations. Clarity of thought and expression in written text can help managers to
communicate better. Good writing skills will reduce ambiguity in communication
which helps to reduce repetitive work.
2. E-mail writing: Mail communication is one of the important parts of corporate
communication. The clarity in the text of mail reduces confusion in both internal and
external communication. Good email communication skills are a prerequisite for
being a good manager. Example: One of the reason for Google being at top of the
game is its top management communicate with its employess through e-mail for
instant response, feedback and ideas to improve their products and services.
3. Report writing: A manager has to report several things related to work to higher
management. Report writing skills help a manager to bring out his argument clearly
and concisely. Example: The Production Manager working in Amazon has to write a
daily report of production activities and operations to inform and update about
products to higher management.
Non-Verbal communication skills
1. Facial expressions: They are responsible for a huge proportion of nonverbal
communication. Consider how much information can be conveyed with a smile or a
frown. The look on a person's face is often the first thing we see, even before we
hear what they have to say. Example: Donald Trump has very strong, very clearly
communicated facial expressions, and his expressions resonate with audiences.
2. Paralinguistic or Vocalic or Prosodics: Paralinguistic refers to vocal communication
that is separate from actual language. This includes factors such as tone of voice,
loudness, inflection, and pitch.
Other important skills required by Managers and Supervisors
Managers and supervisors shall be empathetic listeners and sensitive to feelings of their
employees so that effective communication takes place within organization. They shall be
able to connect with employees problems at professional and as well as at personal level.
Example: A study by research firm DDI found that empathy is one of the most important
drivers of overall performance amongst managers. Managers ability to understand feelings
of employees makes him/her to become effective communicator and problem solver,
which in turn helps to build trust and relationships that fuel team success.

Communication is an essential component of a business. While communication is a natural

part of the human experience, it’s important to consider how you will communicate

Email – hello@edutap.co.in, M - 8146207241 7|P a g e http://www.edutap.co.in

 positively and effectively that aligns with your responsibilities and reputation as a business
professional.

Q.2) Explain the role of information Technology in Communication.

Approach
Introduction: Bring out contemporary significance of the IT and its significance in
communication improvement.

Body: Give arguments on how IT is playing different role in improving corporate

communication, co-ordination, saving time and money.

Conclusion: Can conclude on futuristic note which can show role that IT is going to play in
revolutionising communication.

Answer
Communication, the exchange of ideas, has become faster, easier, and more efficient due
to advances in technology. Cell phones, social networking websites, e-mail, and instant
messaging are examples of technology that enable communication. Information technology
plays a crucial role in using technology to communicate.

1. Use of IT in communication has led to the saving of money E.g., Work from home
concept has gain momentum in recent Covid times. So office expenses born by
companies like Bills, Cafeteria, Infrastructure expenses etc. have reduced considerably.
2. Use of IT in communication has led to saving of time. E.g., Video conferencing saves
time on flights/accommodation
3. Use of IT in communication removes isolation and provides support systems to people
who need it. People can use online chats to communicate with their peers in real time
E.g., WhatsApp, Messenger, Skype etc.
4. Use of IT in communication helps reduce red tapism /delays and corruption in the work
processes. E.g. Online Complaints can be filled against Banking Authorities at RBI’s
Complaint Management System Portal.
5. Use of IT in communication is available 24x7. E.g. Social networking sites as Facebook
and Twitter allow individuals to communicate with total strangers, family, colleagues
and friends in a forum that is online.

However, there are still two sides of the same coin which have been discussed below:

Email – hello@edutap.co.in, M - 8146207241 8|P a g e http://www.edutap.co.in

 1. Though the IT has connected the peoples across the world, but it also caused loss of
face to face communication which often results in loss of personal touch. E.g. Sushant
Singh Rajput recently committed suicide.
2. IT has promoted the concept of Work from home but it created a lack of community and
teamwork. Though there are various platforms like Zoom, Skype, etc., where employees
can connect through video calls and conferences, it might not be as efficient as sitting
together and brainstorming ideas to work effectively.
3. According to a Recent Study by SMARP (a private entity) - Only 13% of employees
reported participating in their intranet daily and Important and relevant mails make
only 38% of the employee Inbox. Hence, IT might have eased the work but it hasn’t
ensured the quality of work.
4. Lastly we cannot ignore the fact the IT is prone it cyber security risks like Virus, fraud,
identity theft etc. E.g. Card details of 1.3 million Indian payments cards had been put
on sale on dark web in 2019.

With improvements in information technology, globalization has increased. The world is

brought closer, and the world’s economy is quickly becoming a single interdependent
system. But the problem of effective communication remains the same. Organizations
need to bring in transparency, openness, and timely communication in order to use the IT in
an effective way.

Rome was not built-in day. Bringing change doesn't mean to change the world in a day but
to nurture the vision of doing it slowly and steadily.

Q.3) What do you mean by Grapevine communication? Also discuss the merit and
demerit of grapevine communication in an organization.
Approach:
Introduction: Define grapevine communication and explain the factors responsible for it.

Body: Bring out merit and demerits of grapevine communication

Conclusion: Conclude by giving a solution to control it.

Answer

Email – hello@edutap.co.in, M - 8146207241 9|P a g e http://www.edutap.co.in

 Grapevine is an informal, unorganized and unofficial channel of communication in an
organization. It is governed by social and personal relationships rather than officially
recognized rules and formalities. It is a channel of horizontal communication, by nature.
However, it does not follow any set pattern. According to, "American Management
Association" report 70% of all organizational communication emanates through the
grapevine. Moreover, most employees deem it trustworthy as well.

Factors responsible for Grapevine Communication

According to author "Keith Davis" - “The grapevine is more a product of situation than it
of the person.” It is a matter of spontaneous feelings. The probable factors that may
activate the grapevine are discussed below:

1. The emotion of employees: Some organizational issues like insecurity of Job,

Uncertainty of promotion, prohibition, undermining the rule of subordinates by
superiors etc. are likely to create emotions in the mind of employees and make them
excited. Thus for relieving the emotions and cooling down the excitements some
workers tend to activate the grapevine.
2. Existence of informal and peer groups: For exchanging most personal and some
organizational matters, employees start channeling information through the
grapevine, by forming peer groups.
3. Exceptional information: Exceptional events like the innovation of new products,
investments in a new field, providing special facilities to a particular employees etc.
should be disseminated throughout the organization. If these are not disclosed to
the employees, someone may activate the grapevine channel.
4. Job itself: It is observed that some jobs or positions such as personal assistant,
personal secretary, driver etc. by their nature can hold some important messages
and play an active role in feeding information in grapevine. Keith Davis pointed out
in this regard that – “Secretaries to the managers are four times likely to be key
grapevine communicators, compared with other employees”.

Merits of Grapevine:

1. Spreads Rapidly- Being a channel free from documentation and hierarchal barriers,
grapevine serves as the fastest medium of exchanging thoughts and information
within and outside an organization. Example: One of the top IT companies in India
had conducted an experiment using Grapevine communication to check the
performance of its employees. The company spread the rumor about firing half of its

Email – hello@edutap.co.in, M - 8146207241 10 | P a g e http://www.edutap.co.in

 employees in a few months, pertaining to their poor performance. The experiment
turned out to be successful because the efficiency of its employees had been
increased to three times than usual performance.

2. Feedback is quick- Every action has an equal and opposite reaction, and in the case
of grapevine it is quick too. The feedback of the rumor reaches in no time back to
the person from where the rumor originated. Example: According to the study
conducted by "American Management Association"- The study showed that when
leadership and grapevine messages were conflicting, 47% of people will believe the
grapevine, 42% will believe senior management and the remaining 11% are
undecided. Hence the feedback is quick in Grapevine communication.

3. Group cohesiveness- Gossip which is a form of grapevine often becomes the main
reason for bringing people closer and making them friendly. Gossip increases
interaction between the employees which directly increases work ability of an
organization.
4. Substitute for formal channel of communication- As we all know that formal
communication is time consuming as it is full of formalities. Example: Since formal
channel of communication is time-consuming, grapevine communication keeps the
employees updated. Any news, good or bad reaches everyone and allows them to
respond according to it.

Demerits of Grapevine:

1. Unverified- Much of the information that gets spread through the grapevine is not
verified. Oftentimes, such information is difficult or impossible to track. Example:
McDonald's fought a persistent rumor in the 1970s in Chicago that they were mixing
earthworms into their hamburger meat and that is the reason they could sell
hamburgers for so little. The rumor eventually extinguished itself.
2. Lack of trust in the workplace- When communication via formal and informal
channels is not consistent, employees may lose trust in their employers and leaders.
Example: A beverage industry CEO lost his job because of the grapevine, as he did
not communicate an update in time. His company had sold a bottling plant to
another company and workers went on strike thinking they would lose their jobs,
which was not the case.
3. Maintaining secrecy- In grapevine communication, communication is made by open
discussions. Therefore, it is often impossible to maintain the secrecy of important
information.

Email – hello@edutap.co.in, M - 8146207241 11 | P a g e http://www.edutap.co.in

 4. Employees may end up not being aligned with the company's goals- When there's
no clear internal communication strategy, it becomes highly challenging to align
employees with the business goals. Example: Lack of alignment between
responsibility and authority. If job duties are unclear, it can cause confusion and
mistrust. When a team member is given the responsibility for a task, they must have
matching authority.

In today's world where information is all around and is overloaded, grapevine

communication is inevitable. Employers are the ones who should, with the right set
of tools, technology, and the right internal communications strategy in place, create
healthier working environments that support open, honest, and transparent
employee communications.

Q.4) What do you mean by communication process? Also discuss the steps involved in
communication process.
Approach:
Introduction: Define communication process

Body: Bring out steps involved in communication process.

Conclusion: Link the utility of clarity in communication process with organizational

behavior.
Answer
The communication process refers to a series of actions or steps taken in order to
successfully convey ideas, thoughts, information and choices to the receiver. The goal of the
communication process is to present an individual or party with information and have them
understand it. The sender must choose the most appropriate medium for communication
process to have worked successfully. Because communication is the key for Directing
the functions of management.

Steps involved in communication process are as follows.

1. Developing idea by the sender: In the first step, the communicator develops or
conceptualizes an idea to be sent. It is also known as the planning stage since in this
stage the communicator plans the subject matter of communication. For Example:
Idea in the mind of a HR manager to do something which can relieve employee from
stress.

Email – hello@edutap.co.in, M - 8146207241 12 | P a g e http://www.edutap.co.in

 2. Encoding: Encoding means converting or translating the idea into an understandable
form that can be communicated to others. During encoding we organize the idea into
series of words, symbols, signs etc. For Example: To think and come up with specific
idea to arrange picnic for employees.
3. Developing the message: After encoding the sender gets a message that can be
transmitted to the receiver. The message can be oral, written, symbolic or nonverbal.
For Example: Conveying the idea to HR head and chief executive of the business.
4. Selecting the medium: Medium is the channel or means of transmitting the message
to the receiver. Once the sender has encoded this into a message, the next step is to
select a suitable medium for transmitting it to the receiver. For Example: HR manager
can choose to speak orally with HR head or he can send a mail.
5. Transmission of message: In this step, the sender transmits the message through
chosen medium. In the communication cycle, the tasks of the sender end with the
transmission of the message. For Example: Delivery of mail suggesting idea of picnic.
6. Receiving the message by receiver: This stage simply involves the reception of
sender’s message by the receiver. The message can be received in the form of hearing,
seeing, feeling and so on.
7. Decoding: Decoding is the receiver’s interpretation of the sender’s message. Here the
receiver converts the message into thoughts and tries to analyze and understand it.
Effective communication can occur only when both the sender and the receiver assign
the same or similar meanings to the message.
8. Feedback: The final step of communication process is feedback. Feedback means
receiver’s response to sender’s message. It increases the effectiveness of
communication. It ensures that the receiver has correctly understood the message.
For Example: Like/dislike by HR head he can also suggest improvements in the plan

Knowledge of these processes to manager can help him to communicate operational task in
a better way. Thus, he can ensure smooth coordination in operations and can enhance
organizational output.

Q.5) Distinguish between Written and Oral Communication

Approach
Introduction: Explain the importance of written and oral communication with a Quote. And
define Written and Oral communication.

Body: Differentiate both on the basis of several factors.

Email – hello@edutap.co.in, M - 8146207241 13 | P a g e http://www.edutap.co.in

 Conclusion: Conclude on the note of their significance and utility in corporate governance.

According to famous Professor Harrold Innis-"The mixture of the oral and written traditions
in the writings of Plato enabled him to made one of the greatest philosophers of the world".
This statement tells us the importance of oral and written communication skills required to
become successful in any field.

Written communication: It transmits the message in written or printed form. It is a highly

trusted and most reliable form of communication. It is widely used in corporates and formal
communications. Examples: Emails, Journals, Newspapers, Text Messages, Facebook Posts,
etc.

Oral Communication: It is the process of conveying or receiving a message with the help of
spoken words. Oral communication can either be used in face-to-face communication like
meetings, lectures, conferences, discussions, etc. And it can also be used in the form of
communication where some medium is used. Example: Telephone, Zoom Meeting,
WatsApp call, etc.

They are differentiated on several grounds, which are as follows:

1. Meaning: Oral communication spreads the message, ideas, and information through
words whereas written communication spreads the message, opinion, and
information through written text in the form of mail, letter, note, Facebook post, etc
2. Requirement: In oral communication sender and receiver need not be literate but
written communication demand a certain level of literacy to send and receive a
message.
3. Speed of Transmission: Oral communication is much faster than written
communication. Orally, the message is conveyed within a fraction of a second but
written communication requires time to deliver the message.
4. Credibility: Oral communication is less credible and forms a part of the informal way
of communication. Whereas, written communication is the most credible form of
communication and is used as proof in various corporate, judicial, and government
transactions. Example: Companies like McKinsey, Boston Consulting and Bain etc,
use oral communication when the policies and projects have been at initial stages
whereas they use written communication to approve and implement those projects.
5. Feedback: Oral communication arranges for instant feedback because the receiver
can transmit the reply in real-time. On the other hand, written communication takes

Email – hello@edutap.co.in, M - 8146207241 14 | P a g e http://www.edutap.co.in

 time to send and receive the message and hence feedback is delayed. Example:
Companies like Accenture, IBM, and Cognizant, etc, give feedback to employees on
their performance through a call for the first time, and later they prepare an annual
performance report using written communication.
6. Improvement in Message: Oral communication does not provide an opportunity to
edit the message. The sender needs to process and deliver information
simultaneously. But, written communication is highly resilient in terms of flexibility
to offer corrections. Written communication does not happen on a real-time basis,
thus improvement is always possible but before the delivery.
7. Probability of Misunderstanding: It is found high in oral communication because the
state of mind, tone of voice, sarcasm can affect the speaker and listener. Whereas it
is found comparatively less in written communication because the sender has ample
scope to think multiple times and write in such a way that all ambiguities are
eliminated. Example: To check the interpretation skills of its employees, A famous
management consulting firm did an experiment where it has divided employees into
two groups. One group has given information about a particular project verbally and
another group has information in a written report. It was concluded that the
probability of misunderstanding information was found more in the first group since
the communication occurred verbally.
8. Cost Involved: As it is a real-time conversation, oral communication involves
negligible cost but written communication involves material and medium that’s why
involves cost. Written communication through annual financial statements, annual
reports, and letter pads in the corporate world is a costly affair.
9. Thinking: Oral communication does not provide much time for thinking the receiver
for the reply whereas Written communication gave time to think for the receiver of
the message or information.

Relationship between Oral and Verbal communication: Oftentimes, written

communication leads to verbal communication, especially when clarity is needed or
questions need to be asked or answered. In the case of this scenario, information is given
and received, in greater detail and follow-ups may occur, as well. It is considered
professional and polite for the receiver to acknowledge all information that is contained
within written communication, back to the sender, before discussing other non-related
topics.

Both types of communication are good at their place and are useful in multiple ways.
People normally use oral communication in day-to-day work because it is quick and

Email – hello@edutap.co.in, M - 8146207241 15 | P a g e http://www.edutap.co.in

 effective. But, written communication is relied upon by the people in places where legal
aspects are involved. Thus, both are important communication modes.

Q.6) The less is uncertainty, the greater is the satisfaction.” In the view of the statement,
discuss the implication of effective communication for managers in an organization.
Approach:
Introduction: Clear the context of the statement given and connect it with the effective
communication for managers.

Body: Bring out the various implications of minimum uncertainty on managerial work.

Conclusion: Connect the given statement by giving forward looking solutions.

Answer

Communication is the common thread that binds various departments, processes,

stakeholders, and regulators together in corporate culture. The degree of certainty in
communication decides its effectiveness and usefulness to the organization. It is essential
for the managers to communicate amongst themselves and also with their team members.
It is important not only to communicate but effectively communicate. It is through effective
communication we can achieve a degree of certainty in the organization. Effective
communication is the key to success in today’s world.

Implications of effective communication for Managers:

1. Exchange of Ideas: Communication is necessary for the exchange of ideas amongst

employees within the organization. A brilliant idea if not shared is of no use.
Managers must communicate amongst themselves to reach ideas that would not
only benefit their teams but also the organization on the whole. Example: Elon musk
encourages his employees to exchange ideas and innovations which made him one
of the top entrepreneurs of today's world. Once, he even went on to Twitter for
ideas to create or design pods for the SpaceX hyperloop project.
2. Accurate Questioning Skills: Sometimes understanding a problem or task can lie in
asking the right questions. A manager should know how to ask thoughtful questions
that deliver the information to employees which can save everyone a lot of time,
frustration, and wasted effort. Example: More than 50 years ago, Peter Drucker

Email – hello@edutap.co.in, M - 8146207241 16 | P a g e http://www.edutap.co.in

 described the power of provocative questions. “The important and difficult job is
never to find the right answers, it is to find the right question.”
3. Grievance Redressed and Employee Satisfaction: Effective communication helps
employees to communicate their issues to the manager and get them resolved. It
can be done through verbal or written mode. Example: Mahindra&Mahindra
designed a grievance redressed system and procedure to record grievances in each
of its manufacturing plants.
4. Problem-solving skills: Effective communication also enables business decisions to
be made quicker, increasing business agility and giving the organization a
competitive edge. Example: Deadlock between worker union and management of
Maruti Suzuki at Manesar plant was sorted through effective deliberation and
discussion.
5. Achieving targets: Effective communication is essential at the workplace to achieve
targets within the desired time frame. An individual doing things all alone would
definitely need more time as compared to employees working as a team. Managers
must communicate effectively with their team members to make them understand
their key responsibility areas and what all is expected out of them.
6. Ensuring Decorum at the workplace: Code of conduct and code of ethics are the
written modes to convey the expected behavior at the workplace. Managers play an
instrumental role in ensuring clarity in this domain to help employees at a lower
level to act accordingly. Example: Tata Motors has adopted the Tata Code of
Conduct (TCoC) to remain consistently vigilant and ensure the ethical conduct of its
operations. The clarity in expected behavior brings good work culture which
ultimately results in satisfaction. Herzberg's theory of motivation also vouches for
good work culture for employee satisfaction.
7. Emotional Intelligence: A manager must be emotionally aware and the ability to
influence others from within. Emotional intelligence is more than just the ability to
regulate your emotional reaction, it is a key strategy in communicating well. A large
component of true emotional intelligence is the ability to read social cues and react
appropriately. Example: Amazon CEO, Jeff Bezos is obsessed with winning over the
hearts and minds of customers, and he uses his self-deprecating humor to make
others feel comfortable with him.
8. Make effective use of Grapevine (informal channel of communication): The
managers can use grapevine to deliver formal messages and for identification of
issues which are significant for the employees. The managers can get to know the
problems faced by the employees and can work upon it.

Email – hello@edutap.co.in, M - 8146207241 17 | P a g e http://www.edutap.co.in

 Thus, The less is uncertainty, the greater is the satisfaction. The degree of certainty depends
on how effectively the manager has communicated with employees. More certainty can
bring in more clarity and effectiveness in work culture. This helps in improving the
satisfaction of employees by reducing the component of frustration due to ineffective
communication.

15 Markers (600 Words)

Q.1) “Management is a two-way traffic based upon the effective machinery of

communication”. Discuss. Also briefly explain the upward, downward, lateral, and
diagonal communication with example.
Approach:
Introduction: Clear the meaning of two-way traffic in the context of communication.

Body: Bring out why and how two-way communication helps in managing the organization.
Then explain the directions of communication with example.

Conclusion: Bring out significance of two-way communication in an organization

Answer

Management of an organization is effective only when its communication machinery is

effective. Effective communication machinery is important because it communicates and
helps in implementing the policies and objectives of the organization on the one hand, and
also helps in understanding the nature and behavior of the people at work.

The communication machinery or process should not only provide the manager with the
privilege of communicating orders and directions to the workers to get the work done
towards the achievement of organizational objectives as given by the classical theory of
organization behavior known as Theory X by McGregor, but the workers also must be given
a right to approach the management and communicate their complaints, grievances,
opinions, facts, suggestions, etc., which may be in response to the orders or directions
received from the management, or in the interest of the organization, contributing to the
achievement of its objectives.

How management is the product of two-way communication, can be discussed through

following arguments:

Email – hello@edutap.co.in, M - 8146207241 18 | P a g e http://www.edutap.co.in

 1. Managing Organizational Change: Any prospective change in an organization can
bring disruptions in its smooth working. Managing such change to prevent a
probable disruption is an important task to be executed by management. Kurt Lewin
3 stage model prescribes the use of two-way communication to make change
acceptable, thus, making it a smooth business. Example: Bank merger has initially
created a situation of panic but government opened channel of communication and
sorted all the doubts and rumors about bank merger.
2. Managing Operational Targets: Every organization needs to perform based on its
vision and mission. However, it is a continuous and long-term process. Effective
transmission of organizational goals and timely feedback on its progress from the
different departments can ensure progress in the right direction. Thus, two-way
communication becomes instrumental in the key affairs of the organizations.
Example: Higher management of Reliance set monthly targets for Jamnagar refinery
from the head office in Mumbai. Daily updates on progress from the refinery can
help management to measure progress and also to eliminate bottlenecks if any.
3. Coordination: Coordination is the function of management that ensures that
different departments and groups work in sync. Therefore, there is the unity of
action among the employees, groups, and departments. It also brings harmony in
carrying out the different tasks and activities to achieve the organization’s objectives
efficiently. Example: When a TATA company sales manager is making a plan to
increase his sales target, he also consults the production manager, the purchase
manager, the finance manager, etc. in order to avoid any problem that may arise in
the future. This clearly shows that coordination is very essential in Management.
4. Goal setting: Goal setting cannot be unidirectional process. Communication with all
stakeholders can help to set realistic goals. Effective communication system helps
managers to set daily, weekly and monthly goals and to make them percolate till all
the involving members. Example: Top management of Walmart industries do
communicate with department heads of planning, manufacturing and assembly
before setting the dispatch target for the month.

There are four types of two-way communication, which can be discussed as follows-

1. Downward communication: It refers to the instructions and other official messages

originating with the top personnel of an organization. These are transmitted from
top to down through a hierarchical set up and reach the lowest ranking official in the
chain. Example: The fixed organization structure of Apple Company allows it to use
the downward stream of communication technique. In essence, the communication

Email – hello@edutap.co.in, M - 8146207241 19 | P a g e http://www.edutap.co.in

 flows from the CEO to the SVP, then to the VP, and eventually, it reaches the
departmental heads and other junior employees.
2. Upward communication: In this, information is passed by the lower levels in the
hierarchy up to those heading the organisation. Example: Indian airline Vistara’s CEO
does not have a cabin and so does the others in the office. The open floor plan and
shared workspaces encourage employees to engage in spontaneous conversation
and leading to extraordinary ideas. Moreover, it also makes employees feel satisfied
with their level of access to channels of upward communication and less
apprehensive about communicating upward.
3. Lateral communication: This type of communication can be seen taking place
between persons operating at the same level or working under the same executive.
Example: Functional managers operating at the same level, in different
departments, through their communication, present a good example of lateral
communication.
4. Diagonal or crosswise communication: It takes place when people working at the
same level interact with those working at a higher or lower level of organizational
hierarchy and across the boundaries of their reporting relationship. Example: Junior
manager in marketing interacting with HR head regarding his performance appraisal.

Two-way communication creates a more democratic environment, whereby people can

share their thoughts, ideas and opinions, regardless of corporate hierarchy, and improve
relationships right across the structure. Effective two-way communication helps everyone
understand the business better and by ensures that everyone is updated with the latest
business agenda, objectives, and progress. Thus, two communication plays key role in
management.

Q 2) What do you mean by communication network? Discuss the relative advantages and
disadvantages of formal communication over informal communication.

Approach:
Introduction: Define Communication network

Body: Part I: Elaborate on communication network and its types, their utility and
significance

Part II: Advantages and disadvantages of formal and informal communication

Email – hello@edutap.co.in, M - 8146207241 20 | P a g e http://www.edutap.co.in

 Conclusion: Bring out significance of formal and informal communication on organizational
set up

Answer

A communication network refers to how information flows within the organization.

Information within an organization generally flows through a system, rather than being a
free flow. Communication networks are regular patterns of person-to-person relationships
through which information flows in an organization. This means that the flow of
information is managed, regulated. and structured. There are several types of
communication networks and these are,

1. Wheel Network: This is the most centralized form of a communication network

wherein all the information flows from one central person, typically the leader. The
other members have little or no communication link with each other. Example:
Startup companies like Swiggy, Zomato, and Dunzo, etc, have very few employees.
These employees receive Information directly from the leader and employees
communicate directly back to the leader.
2. Chain Network: Under the chain pattern, the information flows either up or down
the line. Here each person gets the information from his immediate superior and
then passes it to their immediate subordinates. This network is suitable when the
information to be passed is legally correct. Example: Big organizations like Infosys,
Microsoft and Boston consulting group etc, inform about their projects, policies and
their implementation through a chain of command.
3. Circle Network: The circle network is one of the decentralized forms of a
communication network wherein the information is shared equally among all the
members. Here each person gives and receives information from two or more
persons in the network. Example: Google has member forums that are set up using
this network where information and ideas can be shared equally among all the
members.
4. Free Flow Network: Under this pattern, everyone is connected to each other, and
the information can flow freely from anywhere in the organization. It is the most
decentralized form of formal communication.
5. Inverted “V” Communication: The inverted “V” communication is a formal network
wherein the subordinate is allowed to communicate with his immediate superior as
well as with the superior’s superior, i.e., the boss of the immediate boss. However,
the communication between the subordinate and the superior’s superior is limited.

Email – hello@edutap.co.in, M - 8146207241 21 | P a g e http://www.edutap.co.in

 There are 2 major types of communication channel which are as follows,

Formal Communication Channel: It transmits information such as the goals, policies, and
procedures of an organization. Example: Newsletter, Annual Report, etc.

Informal Communication Channel: Within a formal working environment, there always

exists an informal communication network. Example: Office gossip, Social interaction at
workplace etc.

Both communication channels have certain advantages and disadvantages. Relative

comparison can be as follows:

1. The permanence of Record: The copy of formal communication is always preserved

in the file and is used as a reference. Mails, Letter Head becomes a strength in
official communication. Whereas informal communication like casual talk, debate at
the lunch table cannot be treated as a record. Example: Annual financial statement
of Reliance can be used to evaluate the performance of the company in the last 3
years, but informal text sent on WhatsApp cannot be used for this purpose.
2. Credibility & Cost: Formal communications are reliable and credible but costly affair
whereas informal communication has issues of credibility but cheaper in nature.
Example: Manager issuing guidelines on letterhead will incur cost whereas verbal
message is less credible but involves no cost.
3. Ease of Communication: The top-level management communicates with their
employees by using formal downward communication systems like e-mails. Formal
communication takes too much time if the hierarchy is longer which can affect the
Operational Efficiency of the organization. The informal system is quick but cannot
be useful to undertake official duty with adequate accountability. Example: Amazon
CEO Jeff Bezos believes that "When the formal communication within the company
flows smoothly, then it will flow on to the customer with the same ease and
smoothness, whereas Informal communication can be used to discuss ideas and
innovations when end goal of the product is not certain.
4. Ease of cooperation and coordination: Cooperation and coordination are very much
essential to carry out the business activity smoothly. Formal communications like
minutes of the meeting, conference call recordings help in inter-department
coordination and cooperation. Whereas informal communication has this inherent
disadvantage. If inter-department communication is held informally, it will lead to
anarchy and waste of time. Example: Since the pandemic, many corporate
organizations like IBM, Goldman Sachs, and Accenture, etc. have been using the

Email – hello@edutap.co.in, M - 8146207241 22 | P a g e http://www.edutap.co.in

 Zoom application for meetings and conferences to keep a record of their daily tasks
rather than communicating through telephone.
5. Delegation of Authority: Formal communication channel helps in delegating the
responsibility to the officials at a lower level. Formal communication like power of
attorney ensures all checks and balances for smooth devolution of authority. On the
other hand, delegation with informal communication can create confusion and
bottlenecks. Example: The chairman of Cisco can assign entire departments to
members of the board of directors depending on their specializations using formal
communication channels but he/she will not assign the same through informal
because of legal aspects involved in the delegation of authority.

Communication channels affect how inefficient or efficient the flow of information is within
a company. The lack of communication could cause employees to lack the knowledge of
what the company expects of them, leaving them uninformed. With technology advancing,
the number of communication channels has significantly increased over the past few years.
Many new types of channels exist today including video conferencing, mobile technology,
electronic bulletin boards, and also fax machines. Choosing the type of communication
channel is especially important for effective communication in any organization.

Previous Year Questions – 2021 Onwards

Please be informed that in this section we will be discussing all the descriptive Previous Year
Questions (PYQs), all the questions appearing in this section has a tag of the year in which
that question was asked. If there is no question in this document on any exam from a
particular year or years, it means that no question was asked for that exam in that
year(s) or exam itself was not conducted in that year.

Question - Identify barriers to impersonal or interpersonal communication and how a

manager can reduce it? RBI Grade B (Phase 2) - 2022 - (600 words, 15 marks)

Approach:
Introduction: Start with the basic definition of the communication and then discuss what is
the correct meaning of effective communication.

Body: Seeing the demand of the question, first explain the various barriers of
communication and thereafter in the 2 nd part of the body explain the how the manager can
reduce those barriers.

Email – hello@edutap.co.in, M - 8146207241 23 | P a g e http://www.edutap.co.in

 Conclusion: Conclude on positive note and discuss communication can contribute to the
growth of company.
Answer –
Communication is a two-way process which involves transferring of information or
messages from one person or group to another. However, Effective communication is
about more than just exchanging information. It’s about understanding the emotion and
intentions behind the information. As well as being able to clearly convey a message, you
need to also listen in a way that gains the full meaning of what’s being said and makes the
other person feel heard and understood.

Effective communication can also be affected by various barriers of the impersonal

communication. Some of them are discussed below –

A - Psychological barriers: Psychological barriers also known as “emotional barriers”, they

emerge because of psychological state of message receiver. For example: the Feud between
the Rata Tata and Cyrus Mistry was not only a legal battle which took its own course
through legal actions but was also a psychological one. The two have different approach
regarding how to manage the Tata group which ultimately created a psychological barrier
between the two and ultimately resulted in the ousting of Cyrus Mistry who used to be the
blue-eyed boy of Ratan Tata.

B - Gender barriers- Most communicators whether aware or not, often have a set agenda.
This is very notable among the different genders. For example, many women are found to
be more critical in addressing conflict. It has also been noted that men are more than likely
to withdraw from conflict when in comparison to women

C - Halo Effect: The halo effect is the tendency to use a general impression based on one or
a few characteristics to judge other characteristics of that same individual. For example: A
manager might identify one trait of an employee, such as an excellent attendance record,
and perceive that the employee’s productivity and quality of work must also be
outstanding.

D - Stereotyping: In social psychology, a stereotype is any thought widely adopted about

specific types of individuals or certain ways of behaving intended to represent the entire
group of those individuals or behaviour as a whole. These thoughts or beliefs may or may
not accurately reflect reality.

E - Ideological barriers or Perceptual Errors: The members of the organization do not share
the same ideological perspectives and orientation. Differences in background education and

Email – hello@edutap.co.in, M - 8146207241 24 | P a g e http://www.edutap.co.in

 expectation result in different social and political views. People have different perceptions,
and they receive information from their own point of view. According to Pfiffner, these are
probably the greatest handicaps to effective communication and probably the most difficult
to overcome.

The mention mentioned communication barriers can reduce the overall effectiveness of
organization, however timely actions taken by manager can again re-ignite the whole
organization, following are some measures which can be taken by manager to reduce the
present level of communication barriers –

A – Employee Developmental programmes - Employee development programs can help

staff members build essential communication skills to accomplish their objectives without
hindrances.

B – Formal channels - Setting up a formal, accounted-for communication channel will

inevitably lead to streamlined interactions and engagement among employees.

C – Proper Feedback - Establishing proper feedback channels, performance management

systems and cyclical modes of communication help teams bond, build rapport and trust.

D – Partial Surveys - Organization-wide, anonymous surveys can help management identify

where the problem lies and come up with creative solutions to resolve it.

E – Open Door Policy - An open-door policy can also help employees feel comfortable with
their seniors, without holding back or getting scared to put their ideas on the table.

Striking a balance between informal and formal communication channels is one of the most
effective ways to overcome communication barriers. Organizations can take concrete and
well-researched steps to create a more cohesive, united workforce. Not unlike technical
skill development, communication skill development is a continuous process that requires
attention and by doing so, organizations will achieve economies of scale and it will also reap
handsome returns in future.

Previous Year Questions – 2007- 2014

The marks for these questions are not mentioned because before 2015, the pattern was
different. The questions were not of 10 marks or 15 marks. The year is also not mentioned
since they are all very old papers, and the year is of not much relevance to us.

Email – hello@edutap.co.in, M - 8146207241 25 | P a g e http://www.edutap.co.in

 Q.1) “Discuss the role of communication in an organization. What are the barriers to
effective communication?
Approach:
Introduction: Explain significance of communication in management of organization.

Body: Can divide answer into 2 parts, first part will contain role of communication in
organization and second will contain barriers.

Conclusion: Conclude on the note that how minimizing barriers will improve Corporate
Communication.

Answer
According to Paul J Meyer, Communication- the Human Connection- is the key to personal
and career success and growth of any organization.

Effective communication is a building block of successful organizations and plays the

following important role for an organization.
1. By communicating effectively within an organization, employees can perform more
efficiently as they have all the knowledge and information, they need to complete their
duties.
2. Efforts such as public relations, marketing, and advertising all rely on communication
vehicles and thus important for enhancing business performance.
3. Socialization is an important aspect of a business organization, and communication plays
a key role in creating a welcoming environment.
4. By allowing for a smooth flow of information, the business can negotiate and resolve
tense situations – which can go a long way to protecting its reputation.

The Holmes Report found that companies with strong internal communication
strategies were able to give their shareholders 47% higher return. Amazon is highly
committed to transparent, open, and timely communication with employees and between
employees resulting in an extraordinarily successful growth-oriented organization. Thus,
Communication plays the role of blood for the body known as organization. But there are
certain factors known as communication barriers that come in the way of the smooth flow
of the communication process.

Email – hello@edutap.co.in, M - 8146207241 26 | P a g e http://www.edutap.co.in

 Communication barriers prevent us from correctly getting and accepting the messages
others use to communicate their information, thoughts, and ideas. As a result, the
communication becomes ineffective.

Following are the example of a few communication Barriers:

1 Psychological barriers: Psychological barriers also known as emotional barriers
emerge because of psychological state of message receiver. Example: The Feud
between the Rata Tata and Cyrus Mistry was not only a legal battle which took its
own course through legal actions but was also a psychological one. The two have
different approach regarding how to manage the Tata group which ultimately
created a psychological barrier between the two and ultimately resulted in the
ousting of Cyrus Mistry who used to be the blue-eyed boy of Ratan Tata.
2 Organizational Barriers: Organizational Barriers arise because of the working culture
of the organization. Example: A collapse that became so synonymous that if a
company goes bust from a seemingly indomitable position, it’s called “doing an
Enron”. Enron went from $100 billion in “revenue” and 29,000 employees at the
beginning of 2001, to file for bankruptcy at the end of the same year due to
organizational barriers in communication. Enron’s executives were using accounting
loopholes, special purpose entities, and false error reporting to hide billions of
dollars of debt from failed deals and projects. Enron’s executives didn’t just mislead
the board of directors, they also pressured their auditors to shred, delete and hide
any evidence. Thus, the Barrier created by the executives related to important
information ultimately leads to its fall.
3 Personal Barriers: Personal barriers are obstructions put in place by individuals that
negatively affect their achievement in specific areas or their lives in general.
Example: Mukesh Ambani vs Anil Ambani: India’s biggest sibling rivalry. During their
younger years, the brothers worked together at Reliance Industries under their
father, Dhirubhai Ambani. But soon after the death of their father, the two brothers
fought over their father’s sizeable fortune and massive corporate holdings. Thought
the peace has been managed between the two after dividing the empire. But still,
both had been seen engaging in multiple lawsuits against each other which many
have termed as a sibling rivalry.
4 Semantic Barriers: Semantics is a science of meaning. All communications use
words, pictures, or actions that suggest certain meanings. These barriers arise from
the limitations in the symbols with which we communicate. Example: Shiny
Abraham (Indian Athlete) at the 1986 Asian Games in Seoul, despite coming first by a
very wide margin in the 800 m. Race, she was disqualified and lost her gold medal

Email – hello@edutap.co.in, M - 8146207241 27 | P a g e http://www.edutap.co.in

 for having crossed the track at the place where she should not have gone. According
to her, she mistook the symbol, i.e., the color of the flag. Whereas in our country the
red flag indicates danger, in South Korea white flag is used for the same purpose.
Misinterpreting the white flag which had been put up at that point, she crossed the
track at the wrong place and suffered a setback.
5 Halo Effect: The halo effect is the tendency to use a general impression based on
one or a few characteristics to judge other characteristics of that same individual.
Example: A manager might identify one trait of an employee, such as an excellent
attendance record, and perceive that the employee’s productivity and quality of
work must also be outstanding.
6 Stereotyping: In social psychology, a stereotype is any thought widely adopted
about specific types of individuals or certain ways of behaving intended to represent
the entire group of those individuals or behaviors as a whole. These thoughts or
beliefs may or may not accurately reflect reality.
7 Physiological barriers-These may result from individuals' personal discomfort,
caused—for example—by ill health, poor eyesight, or hearing difficulties.
8 Other Barriers: Attitudinal barriers, Gender Barriers, etc. are some of the other types
of Barriers that arise due to certain situations.

Ineffective communication can make countries/organizations pay huge cost. India

and Pakistan have never been able to make much progress to resolve border issues
due to complete distrust in each other.

Communication is one of the important pillars for organizational success which at times can
be hampered by various communication barriers. Effective Communication requires more
than an exchange of information. When done right, communication fosters understanding,
strengthen the relationship, improved teamwork and build trust.

Q.2) Distinguish between Verbal and Non-verbal Communication.

Approach
Introduction: Can introduce with the meaning of verbal and non-verbal communication so
that comparison makes sense

Body: Can pick common thread which can help to compare both type of communication.

Conclude: Conclude with importance of communication in day-to-day life.

Email – hello@edutap.co.in, M - 8146207241 28 | P a g e http://www.edutap.co.in

 Answer
Famous Entrepreneur Jim Rohn said, Powerful communication is 20% what you know and
80% how you feel about what you know. This clearly says the importance and power of
communication one should have. Communication is a sum of all the things a person does
while interacting with others and it is a bridge of meaning. Communication involves
continuous process of telling, listening and understanding. A person can influence others by
the means of behaviour and through verbal and non-verbal communication. Verbal and
non-verbal communication can be distinguished on the basis of following parameters.

Point of Difference:
1) Mode of Communication:
Verbal communication uses language, words, sentences, and voice as the medium of
communication.
Nonverbal communication uses body language, facial expressions, tone, and pauses in
speech as the medium of communication.

2) Channels of communication
Verbal communication uses a single channel of communication, the human voice, which
speaks a single word at a time.
Nonverbal communication uses multiple channels of communication including your entire
body, facial expressions, and tone of voice.

3) Consciousness in communication
Verbal communication is a conscious process. It involves thinking, processing, and
articulating. “Think before you speak” is a fundamental principle of verbal communication.
Nonverbal communication happens on an unconscious level. One doesn't really think about
it actively. Example: When Hitler’s army was overpowered by the enemy, he tried to sound
confident through his words but at unconscious level his body movements, his facial
expressions exhibited the fear inside him.

4) Decoding the communication

Verbal communication is fairly easy to decode if you understand the language and the
words being used. When you pay close attention to the person who is speaking, you will
understand what they are saying whereas Nonverbal communication is a little harder to
decode than verbal communication. You have to pay attention to many factors including
the speaker’s body language, facial expressions, and tone to decode what the other person
is trying to convey. Example: Kellogs did a market research and found that it’s TV ads where

Email – hello@edutap.co.in, M - 8146207241 29 | P a g e http://www.edutap.co.in

 message was explicitly said rather than being exhibited only through actions resonated
much better with the consumers.

5) Exclusivity of Communication
Verbal communication is exclusive to the users of a particular language dialect.
Some nonverbal communication is recognized across cultures. People around the world
recognize and use expressions such as smiles, frowns, and the pointing of a finger at an
object. Not all Non-Verbal communication are exclusive. Example: Foreign company
established in India tried to market their products and services on TV with English accent,
but the ads were not resonated with Indian consumers because of language dialect. When
they, tried to connect with consumers using symbols and signs, the response was better
and their customer base has increased significantly.

Verbal communication is obviously an important part of life as we use words to

communicate. But a small baby cannot use language or words to speak, but he chooses
signs to show his anger, happiness, and sorrow. Similarly, deaf and dumb persons also use
sign language for communicating with other people. Verbal and Non-verbal communication
are not contradictory to each other, but they are complementary as somebody has rightly
said,” Actions are louder than words.”

Homework Question

Ques.) The existence of a variety of communication media does not itself guarantee the
success of communication.” Comment. (10 Marks, 400 words)

Email – hello@edutap.co.in, M - 8146207241 30 | P a g e http://www.edutap.co.in

Email – hello@edutap.co.in, M - 8146207241 1|P a g e http://www.edutap.co.in
Email – hello@edutap.co.in, M - 8146207241 2|P a g e http://www.edutap.co.in
 Introduction
This document consists of 4 sections

1) 10 Marker Questions: In this part we shall be giving you 10 marker questions.

These are supposed to be somewhat direct and easy as compared to 15 marker
questions

2) 15 Marker Questions: In this part we shall be giving you 15 marker questions.

These are supposed to be little complex or consisting of multiple sub questions or
may be an integrated question from concepts of different chapters

3) Previous Year Descriptive Questions: The previous year descriptive questions are
subdivided into two sections
a. 2021 Onwards: We shall cover all previous year questions asked in the exam
from 2021 onwards
b. 2007-2014: We shall cover all relevant previous year questions asked in the
exam between 2007-2014
I. Some questions from previous years might not be covered in any of the
chapter since they might not belong to current syllabus. The syllabus
earlier was different from the current syllabus.
II. Some questions from previous years might not be covered as they are
related to current affairs of that year which is not relevant now.
III. Moreover, some chapters have lot of previous year questions, in those
chapters we have given complete answers to some questions and for the
rest of the questions, the answer outline is given
c. The exam was conducted in objective pattern between 2015 and 2020. For
these years no subjective questions is there

4) Homework Question: There is one homework question for you to think and write.
The answer for this question will not be given by us.

Email – hello@edutap.co.in, M - 8146207241 3|P a g e http://www.edutap.co.in

 Other Guidelines

1. The answers given here are not to be crammed. They are not given from the
perspective of being perfect answers. No answer is a prefect answer. If we ask
500 people to write answers to these questions, then we will get 500 different
answers and we cannot decide which one is perfect answer. The answers given
here is to help you guide towards the approach to answer writing

2. The answers written here may exceed the word limit in some cases. But that is
done intentionally, so that you understand it better and in exam you can
further summarize that information to achieve the desired word-limit.

3. In certain answers, the content/points written may not be covered in the

notes/videos. But that is also done to make you realize that we cannot simply
be bookish in writing answers, rather some content/points need to be written
from our understanding of things. This is called the application part

4. We would recommend that questions to the answers should not be just read.
What you shall do is
a. For 2-3 questions, please write answer in your own words so that you get
practice for descriptive writing. Then try to match your answer with
answer given by us and try to self-evaluate
b. For the rest of the questions, try to make an outline as in what you will
write in this answer. Then try to match your outline with answer given by
us and try to self-evaluate

5. Please refer the videos on “Science and Art of Descriptive Writing” that have
been included earlier in the course. Those videos shall be watched again and
again to get better hold on answer writing

Email – hello@edutap.co.in, M - 8146207241 4|P a g e http://www.edutap.co.in

 10 Markers

Q.1) How do charismatic and transformational leadership differ from

each other? (400 words, 10 Marks)
Approach

Introduction: Start with a quote of famous leader and then explain what does Charismatic
and Transformational leadership means.

Body: Explain how charismatic and transformational leadership differ by taking different
factors into account.

Conclusion: Give balance opinion of two leaderships and conclude it with leadership style
differ according to the situation.

Answer

"You must be the change you wish to see in the world"-Mahatma Gandhi.

Charismatic leadership style is when a leader with charismatic qualities inspires others
towards a greater purpose. It can be very inspirational and motivational for the followers. A
transformational leader is a type of person in which the leader is not limited by his or her
followers' perception. The main objective is to work to change or transform his or her
followers' needs and redirect their thinking. Transformational leaders also create a vision of
what they aspire to be and communicate this idea to others. Some of the differences
between Charismatic and Transformational leadership are discussed below,

1. Origins: People believe charismatic leaders are born and not made whereas
Transformation leaders are adaptive leaders and mostly are trained to become
leaders. Example: Elon Musk has a following that is virtually unmatched for
entrepreneurs. This speaks volumes about his ability to win crowds over by using his
charisma alone whereas the transformational leadership of Netflix CEO Reed
Hastings has helped the company grow from a small DVD rental service to an
internet streaming service with 93 million customers in more than 190 countries.
Hasting encourages employees to take risks, empowers them to take decisions, and

Email – hello@edutap.co.in, M - 8146207241 5|P a g e http://www.edutap.co.in

 gives them the freedom and responsibility to create innovative ideas and products
show that leaders are adaptive to the situations.
2. Vision: In transformational leadership, the vision is put together by the group
whereas the charismatic leader is like to have a vision that then becomes the vision
of the followers. Hence, transformational leadership has a much more democratic
approach to setting the vision. Example: The vision of Steve Jobs to create Apple
with his friends shows a classic example of transformational leadership whereas Elon
Musk's vision of building Tesla motors had become a vision of his employees which
gave birth to self-driving cars shows an example of charismatic leadership.
3. Empowerment and Transparency: The charismatic leadership style builds to a
certain extent on the obedience of the followers. Obedience means you do what you
are told, and much less effort is put on transparency and explanations. In
transformational leadership, it is quite the opposite. In this style, the team members
are purposely empowered in order to contribute with initiative and engagement.
Example: Mahatma Gandhi's charismatic leadership made many leaders and people
come together to achieve Independence for India whereas Nelson Mandela used
transformational leadership principles while working to abolish apartheid and
enforce change in South Africa.
4. Developing the team members: In transformational leadership, one of the key
purposes is to develop the team members so they can learn and evolve whereas in
Charismatic leadership developing people is not a focus area. The focus area is the
leader and fulfilling the vision of that leader. The persona of the leader is seen as far
more essential than those of the followers. Example: E-commerce sites like Amazon,
Flipkart, Myntra, etc use transformational leadership to develop teams to get their
inputs and ideas on new products and services and make them more consumer-
centric whereas many Government organizations leaders use charismatic leadership
to fulfill the vision of the organization as a whole.
5. Benefit-sharing: Charismatic leaders tend to work more towards their personal
benefit and image building whereas Transformational leaders tend to work more for
the betterment of the organization and their followers.
6. Succession: Charismatic leaders are hard to replace whereas Transformational
leaders will be replaced by the next-in-line commandment officer in the organization
if they are trained well.

The common ground for both charismatic and transformational leadership theories is the
ability of both approaches to influence followers and effect change in the organization or
group. The influence processes used by both are different, and No one style of leadership

Email – hello@edutap.co.in, M - 8146207241 6|P a g e http://www.edutap.co.in

 fits all situations. Therefore, it is important for the leader to adapt his or her approach to fit
the existing situation.

Q.2) What is the difference between trait and behavioral theories? Are
the theories valid in today’s world? (400 words, 10 Marks)
Approach

Introduction: Explain what are Trait and behavioral theories with examples.

Body: Mention the differences of trait and behavioral leadership and support it with an
example whenever it is required.

Conclusion: Conclude it with why these two theories are valid in today’s world.

Answer

Theories of leadership are schools of thought that explain how certain individuals become
leaders. Trait and behavioral theories are two such popular theories of leadership. The key
difference between trait and behavioral theories of leadership is that trait theory states
that leaders have inborn traits, whereas behavioral theory rejects inborn virtues of leaders
and states that leaders can be trained.

Example: Oprah Winfrey's cardinal trait could be sociability. She is sometimes called the
"queen of talk" because of her extraordinary ability to talk to different kinds of people
whereas Dr. Kiran Mazumdar-Shaw, the chairperson of Biocon started her organization with
minimal experience and several obstacles. She succeeded in making Biocon a global brand
because of her dynamic and behavioral leadership style.

Differences between Trait and Behavioral leadership style:

1. In behavioral theory, employees can be trained to become a leader by developing

leadership skills in them. Whereas according to trait theory, leadership skills can’t be
taught. Leadership skills are naturally part of the person’s personality from birth.
Example: The leadership skills of Narendra Modi can definitely be attributed to some
traits inside him but on the contrary, we also have examples where leaders like
Tejasvi Yadav have been groomed by his family to take on the baton from the older
generation.

Email – hello@edutap.co.in, M - 8146207241 7|P a g e http://www.edutap.co.in

 2. The goal of Behavior theory is to develop the leader whereas the goal of trait theory
is to select the leader based on their qualities. Example: Coca-Cola CEO believes that
company persuades and ensures that the employees are given a chance to learn and
develop leadership skills monitoring the improvement from time to time followed by
selecting those employees who possess successful leadership skills.
3. Behavior theory is relatively easy to develop and apply as one can assess both the
leadership success and actions of leaders. One can easily amend the actions which
are causing failure whereas trait theory has inbuilt qualities, so there is no scope of
improvement and amending the actions of an individual. Example: Big companies
like Apple, Google, etc. believe in training and mentoring capable people to become
the leaders of tomorrow. Sundar Pichai, the CEO of Google started at a very ordinary
position in the company and had a very humble background. He did not so-called
extraordinary traits. But Google saw the potential in him and groomed him to take
the leadership role.
4. Trait theory leader must have certain inherent and innate qualities whereas
behavioral leader shows more of democratic kind of qualities.
5. Trait theory defines leaders' effectiveness based on individual characteristics
whereas behavioral theory defines a leader's effectiveness based on task and
relationship orientation. Example: Richard Branson said Steve Jobs had a meticulous
eye for detail and surrounded himself with like-minded people to follow his lead
shows a behavioral style of leadership whereas Winston Churchill's mammoth task
of defeating Nazi Germany, he brought to bear many of his special traits like
courage, perseverance, independence, physical and emotional resilience which is a
classic example of trait theory which says leaders are born.

Both the theories are valid in today's world as some traits of the person’s character are
naturally gifted which makes one a leader such as eagerness to forgive, caring and
willingness to help and support others. Everyone can be an effective leader either by having
inner qualities or by proper training. Nowadays, many companies are spending much and
hiring professionals to train their manager’s leadership potential and the results have been
turned out to be fruitful.

Email – hello@edutap.co.in, M - 8146207241 8|P a g e http://www.edutap.co.in

 Q.3) What is authentic leadership? Why do ethics and trust matter to
leadership? (400 words, 10 Marks)
Approach

Introduction: Define Authentic leadership with an example

Body: Explain about Ethics and trust in leadership with an example each.

Conclusion: Conclude it with why ethics and trust in leadership required in today’s corporate
world.

Answer

The philosopher Jean Paul Sartre wrote about authenticity, arguing that to be an authentic
person, an individual needs to be honest with one self and avoid self deception. Authentic
Leadership focuses on the moral aspects of being a leader. Authentic leaders know who
they are and what they believe in, and they act on those values and beliefs openly and
candidly.

The primary quality, therefore, produced by authentic leadership is ethics and trust.
Authentic leaders share information, encourage open communication, and stick to their
ideals. The result is people come to have faith in authentic leaders. Example: Mr. N.R.
Narayana Murthy has always inspired his team at Infosys, to take the long route to success
and not cut corners by being unethical. Being ethical and hard work are the values that Mr.
Murthy believes in and sticks to that no matter what the situation is.

Ethics in leadership: In terms of ethics, we expect leaders to find discipline and self-control
by understanding and seeing what is right, what is wrong, and of all the things that might be
right, picking the best one. Bill Grace based on his formal leadership research and personal
passions around faith and ethics developed the 4-V Model of Ethical Leadership which is a
framework that aligns the internal (beliefs and values) with the external (behaviors and
actions) for the purpose of advancing the common good. The four pillars of this model of
leadership are,

1. VALUES: Ethical leadership begins with an understanding of and commitment to our

individual core values, linking this with our decision-making on our personal and
professional life.

Email – hello@edutap.co.in, M - 8146207241 9|P a g e http://www.edutap.co.in

 2. VISION: Vision is the ability to frame our actions, particularly in service to others,
within a real picture of what was supposed to be.
3. VOICE: Articulating our vision to others in an authentic and convincing way that
animates and motivates them to act
4. VIRTUE: We foster virtue by practicing virtuous behavior, striving to do what is right
and good. In particular, virtue stands for the common good.

Example: Ratan Tata is a leader who hasn't compromised on his ethics, is trustworthy and a
great leader to follow. In 1985 someone in the aviation sector asked for Rs.15 crore of bribe
from Ratan tata to let the TATA group enter the aviation sector. As it was against his ethics
and that’s why he did not enter into the aviation business at that time.

Trust In Leadership: The qualities that a trusted leader should have,

1. Predictability: This means being able to predict what other people will do and what
situations will occur. If we can surround ourselves with people we trust, then we can
create a safe present and an even better future.
2. Value exchange: It means making an exchange with someone when you do not have
full knowledge about them, their intent, and the things they are offering to you.
3. Delayed reciprocity: It means giving something now with an expectation that it will
be repaid, possibly in some unspecified way at some unspecified time in the future.

Example: As Steve Jobs evolved as a leader, he demonstrated faith in people specifically, his
employees in a period of unprecedented growth at Apple after his return. His trust in his
employees is solidly grounded in leadership theory and practice. Faith is the building block
of trust that fosters great teamwork, collaboration, and innovation. We can't possibly have
one without the other. It's this building block of trust, in Steve Jobs' case, that crystallized
his relationships with his knowledge workers that helped launch the Apple products we
can't live without today.

A leader with Ethics and Trust is a leader respected and followed the most. Ethics and trust
will play an important role in this century where corporate houses are focused on good
governance practices. Nurturing Values-based leadership is a framework that will enable
creating a stronger, more ethical culture and make the leadership style more effective.

Email – hello@edutap.co.in, M - 8146207241 10 | P a g e http://www.edutap.co.in

 15 Markers

Q.1) What are the contemporary issues in leadership? Discuss them

briefly. Also discuss the implications of effective leadership for a
manager in organization.
Approach

Introduction: Define about contemporary issues in leadership.

Body: Explain the contemporary issues in leadership and support it with examples whenever
required.

Conclusion: Give an optimistic solution about how to overcome these contemporary issues in
leadership.

Answer

Contemporary Issues in Leadership is a way of communicating that shapes the meaning of

Selective highlighting of facts and events Ignored in traditional leadership studies.
Leadership is setting a new direction or vision for a group that they follow, a leader is a
spearhead for that new direction. The following are the major and important contemporary
issues in leadership.

1. Gender issue: The gender issue is taken as a very important issue in the concept of
leadership development. Traditional styles of leadership are changing day by day
with the new practices and exercises in the field of leadership. Recently most of the
studies reveal that the leadership and management styles of a male leader differ
from his female counterpart. Normally, it is observed that male leaders follow the
directive and analytical leadership styles where women follow participative
and interactive approaches for effective leadership. They are less status-oriented
and have better interpersonal skills than men. Therefore, it is a big issue in the field
of leadership that needs to be studied more in days to come. Example: In a Pew
research center survey, it was found out that in certain industries, women seem to
have an advantage based on the survey’s findings. 31% think a woman would do a
better job running a retail chain, while only 6% can say the same for a man. In

Email – hello@edutap.co.in, M - 8146207241 11 | P a g e http://www.edutap.co.in

 healthcare, 19% think a woman would be a better choice as a hospital’s manager,
while less than half (8%) would say the same for a man.
2. Emotional Intelligence: It has been suggested that effective leaders possess
emotional intelligence, which is the ability to recognize and manage emotion in
oneself and in others. Many researchers believe EI is more important for effective
leadership than IQ or technical skills. EI affects the way leaders make decisions.
3. Training for leadership: Different researches in the field of leadership highlighted
the importance of training for effective leadership. Some researches reveal that
leadership can be taught. People can learn communicating, empowering, and
visioning skills with the help of a trainer. What is important is the supportive culture
of the management to provide such opportunities. Example: "Learn and Lead" is the
new funda for top organizations to even small companies of today's world of
business. Organizations like Amazon, Microsoft, and Google, etc have been training
their managers to become leaders of tomorrow.
4. Moral dimensions: Leadership is not value-free. So we should look at the moral
content of a leader’s goal and the means he/she uses to achieve those goals.
Example: Integrity, Unity, and Responsibility are some of the Tata Group’s core
values, and Ratan Tata exemplifies these values and remains an inspiration to
individuals across generations.
5. Team leadership rather than group management: Team leadership idea is a recently
developed idea in the field of management or leadership. The related issue is taken
as a very essential matter in today's leaders. They are not trained to handle the
change to teams. Time demands teamwork but most of our leaders are trained to
manage groups. Different roles are necessary because teams are more interactive,
conflicting, and need open communication than groups. Example: Google’s Larry
Page and Sergey Brin introduced the “20% Policy” where employees were
encouraged to spend 20% of their time working together as teams on creative and
innovative ideas that could benefit Google and its future success. The fruits of this
policy include Google News, Google Mail, and even AdSense, which still brings in
billions in profit.

Implications of effective leadership for a manager

1. Research on charismatic and transformational leadership has made major

contributions to our understanding of leadership effectiveness. Organizations want
managers who can exhibit transformational leadership qualities and who have a
vision and the charisma to carry it out. Example: Organizations like Proctor&Gamble,

Email – hello@edutap.co.in, M - 8146207241 12 | P a g e http://www.edutap.co.in

 Mckinsey and Walmart, etc have been hiring managers who can exhibit qualities of
both charismatic and transformational leadership for effective leadership in the
organization.
2. Effective managers must develop trusting relationships with followers because, as
organizations have become less stable and predictable, strong bonds of trust are
replacing bureaucratic rules in defining expectations and relationships. Example:
According to Accenture's research study highlights that, when there is more trust in
the workplace, employees are 23% more likely to offer more ideas and solutions.
3. Tests and interviews help identify people with leadership qualities. Managers should
also consider investing in leadership training such as formal courses, workshops,
rotating job responsibilities, coaching, and mentoring. Example: Google provides
mentoring, coaching, and conduct workshops for its managers to make them
effective leaders of the organization.
4. Effective Managers should hire candidates whom they believe are ethical and
trustworthy for management roles and train current managers on the organization’s
ethical standards to increase leadership effectiveness and reduce abusive
supervision. Example: The Year 2019 JPI report shows that character traits rank
higher than job skills. Integrity was the most important trait for applicants at all
experience levels. Respondents suggested they were most concerned with honesty,
having received falsified résumés or having been lied to about a candidate’s
background in the past. A strong work ethic, self-motivation, and accountability
follow integrity in importance for entry or mid-level positions.

Leaders assume roles and navigate issues so that their employees can perform at the
highest possible level with as few disruptions as possible. Contemporary leaders face new
roles and issues every day in this fast-paced world. Real leaders will continue to emerge as
new situations present themselves. Recently, leadership scholars started to emphasize the
importance of serving others and adopting a customer-oriented view in leadership. Another
recent focus is on the importance of being true to oneself as a leader. While each
leadership approach focuses on a different element of leadership, effective leaders will
need to change their style based on the demands of the situation as well as using their own
values and moral compass.

Email – hello@edutap.co.in, M - 8146207241 13 | P a g e http://www.edutap.co.in

 Q.2) “Leadership is situational”. Explain the statement with examples.
Also discuss the situational factors important for effective leadership.
(600 words, 15 Marks)
Approach

Introduction: Explain the given statement “Leadership is situational”

Body: Explain about situational leadership with an example and also discuss the leaders
behavior and situational factors important for effective leadership

Conclusion: Connect situation theory with effective leadership and conclude its importance.

Answer

Napier and Gershenfeld (1987) stated “successful leaders are those who can adapt their
behavior to meet the needs of their followers and the particular situation”. Therefore,
situational leadership explains how leaders must react and decide, based on specific
circumstances, and that all leadership is situational. Hersey and Blanchard (1969) developed
a situational leadership model, which was based on Reddin’s (1967) 3-D management style
theory that emphasized task, relationship, and relative effectiveness.

Situational leadership theory illustrates how a leader identifies which approach to use
based on specific circumstances. As per this theory, the situation itself determines the
leadership style that will be most effective, and no single style of leadership is appropriate
for all situations. These theories are also called contingency theories.

Example: In addition to the trait leadership style, Steve Jobs adopted a different set of
tactics and strategies known as situational leadership. In the early time before leaving the
Apple Company, Steve Jobs used to lead the organization through a laissez-faire style to
promote innovation and encouraged and motivated the employees. But it was also leading
to low productivity. After rejoining Apple in 1995, Steve Jobs came up with a handful of
different tactics in his management theories. Although he still pursued perfectionism in the
production, he was highly demanding and that is the reason the Apple employees regard
him as an Authoritarian “autocratic” leader, and his leadership style was mainly focusing on
the projects.

Email – hello@edutap.co.in, M - 8146207241 14 | P a g e http://www.edutap.co.in

 Situational theory believes that leadership effectiveness depends on leader’s behaviors and
situational factors in which leadership is exercised up on. Let us discuss these two factors,

1. Leader’s behavior: Leader’s behavior is affected by two variables,

a. Leaders’ characteristics: Leaders' behavior is influenced by their characteristics

like their ability, personality, attitude, interest, motivation, etc. All this factor is
internal to the leader. Example: Very few people are as synonymous with their
industry as Bill Gates is with information technology (IT). It wasn’t until the age of 13
that Bill saw his first computer at school. He actually paid to use it, and when his
money ran out, he hacked into the computer to use it for free. At this point, young
Bill was destined for an innovative career in IT which made him rule the world's IT
industry for decades.

b. Leaders Hierarchical Position: Leaders' hierarchical position in the organization is

important because persons at different levels different kinds of participation is
involved. Managers at a higher level are more concerned with long-run complex
problems which require more participation in decision making. Managers at lower
levels are more concerned with short-run problems involving routine operations
which may not require a high level of participation. The degree of participation
affects the leader’s behavior.

2. Situational Factors: Besides a leader’s characteristics it is the situation that

determines whether the leader will be effective or not. Some leaders may be
successful in certain situations whereas they may not be successful in other
situations. Example: A leader who is a tough taskmaster might be successful in
managing workers in a factory whereas he might not be successful in managing
white-collar workers in the IT industry.

The situational factors can be grouped into 4 categories: Subordinate’s characteristics,

Leader’s Situation, Group Factors, and Organizational Factors.

a. Subordinate Characteristics: The characteristics of subordinates like their ability,

personality, attitude, interest, etc. affect their behavior which makes the work of a leader
easier as these characteristics helps to solve the tasks efficiently which is very much
essential for growth of an organization.

Email – hello@edutap.co.in, M - 8146207241 15 | P a g e http://www.edutap.co.in

 b. Leader's Situations: A leader’s situation in respect to his subordinates depends on two
factors – Leader position power and leader-subordinate relationship.

i. Leader’s position power helps or hinders in influencing others: high pos ition power
simplifies the leader’s task of influencing others while low-position power makes the
leader's task more difficult.

ii. Leader-subordinate relationship indicates the extent to which a leader will satisfy the
subordinates’ needs and the extent to which subordinates will contribute to the leader’s
success. If leader subordinate relationship is good, the leader is likely to be effective. In the
alternative case, the leader will be ineffective.

c. Group Factors: Various group factors like task design, group composition, group norms,
group cohesiveness, and peer group relationship affect leadership effectiveness and
performance. If these factors are favorable, the leader will be effective. Example: Henry
Ford-The founder of Ford Motors believes that “Coming together is a beginning. Keeping
together is progress. Working together is a success.” which made Ford motors one of the
topmost automaker's companies in the world.

Situational theory helps us explain why certain people are effective in one situation and
they are not successful in other situations. Managers can do better if they can adapt as per
the situational variables. It was always considered that leadership style has a very influential
effect on employee’s productivity, directly impacting organizational performance. Effective
leadership style motivates employees to reach desired organizational goals, promoting
good leadership that leads to an increase in employee’s productivity.

Previous Year Questions – 2021 Onwards

Please be informed that in this section we will be discussing all the descriptive Previous Year
Questions (PYQs), all the questions appearing in this section has a tag of the year in which
that question was asked. If there is no question in this document on any exam from a
particular year or years, it means that no question was asked for that exam in that
year(s) or exam itself was not conducted in that year.

Email – hello@edutap.co.in, M - 8146207241 16 | P a g e http://www.edutap.co.in

 Q.1) What is Transformational leadership and Transactional Leadership? State
difference in transactional leader and transformational leader. (400 words, 10
marks) RBI Grade B (Phase 2) - 2021 - (600 words, 15 marks)
Approach

Introduction: Define Transformational and Transactional leadership with a quote and give an
example of each.

Body: Write the differences between transactional and transformational and support it with
an example wherever possible.

Conclusion: Conclude it with why these two leadership styles are important.

Answer

Transactional Leadership: "When placed in command, take charge."- Norman Schwarzkopf

Transactional leaders focus on the role of supervision, organization, and group

performance. They are concerned about the status quo and day-to-day progress toward
goals. It operates within existing boundaries of processes, structures, and goals, Example: In
1985, Microsoft launched Windows. Bill Gates is now one of the richest people in the world.
As a transactional leader, he used to visit new product teams and ask difficult questions
until he was satisfied that the teams were on track and understood the goal. He wants to
see that efficiencies are met, and nothing is falling through the cracks. Under his leadership,
Microsoft has literally changed the world.

Transformational leadership: "To lead people, walk behind them.” – Lao Tzu.

Transformational leaders work to enhance the motivation and engagement of followers by

directing their behavior toward a shared vision. It challenges the current state and is
change-oriented. Transformational leaders also create a vision of what they aspire to be
and communicate this idea to their followers. Example: Amazon was a little-known online
bookselling company back in 1994 with Jeff Bezos as its CEO. The plan was to sell books
online and hopefully break even eventually. Amazon's stock boosted about 5000 percent
between 1994 to 1997 and later that year took on another transformational format in
creating an eReader market by introducing their Kindles. Bezos bet that he could change

Email – hello@edutap.co.in, M - 8146207241 17 | P a g e http://www.edutap.co.in

 the way we read books by turning them into digital content, where many books can be
loaded on one device for consumption. Transforming book sales, and later introducing
multi-product sales has given Amazon a market value of $1.7trillion as of April 2021.

Differences between Transactional and Transformational leadership

1. Tackling issues: Transactional leadership is responsive whereas Transformational

Leadership is proactive.
2. Motivation: Transactional leadership is linked to immediate performance through
rewards and Punishment while Transformational leadership uses Inspirational
Motivation which makes employees act beyond their scope. Example: Many high-
level members of the military, CEOs of large international companies, and NFL
coaches are known to be transactional leaders where they link performance through
rewards and punishments. And, Companies that have thrived under
transformational leadership include many of the most famous names in our culture
today, including Apple, IBM, Microsoft, Walmart, and Google, etc.
3. Follower Development: Transactional leadership uses Training and Development
programs while Transformational leadership uses Individualized Mentoring and
coaching.
4. Orientation: Transactional leaders follow task orientation while Transformational
leader follows Goal Orientation. Example: Sheryl Sandberg has been the CEO of
Facebook and has been an advocate for women in business. She is a great task-
oriented leader and says, “Leadership is about making others better as a result of
your presence and making sure that impact lasts in your absence." While Michelle
Obama has considered as Goal oriented leader and says, "Never let what somebody
else says distract you from your goals".
5. Functions of leaders: Transactional leaders define objectives, clarifying tasks, and
helping subordinates in achieving objectives while Transformational leaders provide
vision and mission, instilling pride, gaining respect, trust, and inspiring people.
Example: What made Steve Jobs one of the greatest entrepreneurs to ever live was
his obsession with the details and clarifying tasks with his subordinates in achieving
companies goals. While Nelson Mandela used transformational leadership principles
while working to abolish apartheid and enforce change in South Africa.
6. Influence process: Transactional leaders use the traditional process of authority
while transformational leaders use Influence through idealized Influence by being a
role model.

Email – hello@edutap.co.in, M - 8146207241 18 | P a g e http://www.edutap.co.in

 7. Organizational Growth: Transactional leadership is Bottom line growth while
Transformational leadership is Top line growth.

Transactional Leadership is more about the exchange between leader and follower where
followers work to complete the task and the leader gives him the rewards. On the other
hand, Transformational leadership is more about inspiring confidence, motivation, vision,
and beliefs in the followers. It is a misconception that Transactional Leadership is not useful
in any situation as it may be appropriate in situations where there is a need to handle
lower-level workers doing routine jobs. On the other hand, Transformational leadership
used when there is a need for innovation, creativity, and Highly complex tasks that need to
be accomplished.

Previous Year Question- 2007-2014

The marks for these questions are not mentioned because before 2015, the pattern was
different. The questions were not of 10 marks or 15 marks. The year is also not mentioned
since they are all very old papers, and the year is of not much relevance to us.

Q.1) “Leaders are Born, Not Made”. Comment.

Approach

Introduction: Explain which theory talks and support the given statement with an example.

Body: Explain the theory and mention the drawbacks of the theory and support it with
examples.

Conclusion: Support the given statement as well as explain why leaders are made, not born.

Answer

The idea that Leaders are born is supported by Great Man theory as well as Trait theory. An
individual's personality is the unique combination of psychological characteristics that
affects how a person reacts and interacts with others. This can be clearly seen in the people
who are born with the makings of a leader - there are certain traits that differentiate
leaders from non-leaders. Example: It was believed that Napoleon was a born leader due to
his natural ability to rise out of any situation. These theories actually emphasizes

Email – hello@edutap.co.in, M - 8146207241 19 | P a g e http://www.edutap.co.in

 ‘charismatic’ leadership. As per this theory, great leaders have inborn characteristics such
as commanding personality, charm, courage, intelligence etc. These qualities cannot be
learned but are ingrained.

As per Great Man theory,

1. Good leaders have in born qualities which are bestowed upon them by God
2. Ordinary people cannot become good leaders.
3. Leadership qualities cannot be acquired through formal education.
4. The situational factors have little influence on leaders’ qualities. A good leader will
be a good leader in all situations.

Criticism of Great Man Theory/ Leaders are born and not made

1. Leadership qualities are not just in-born, they can be acquired also. Example: Hitler
who was just a house painter in youth became a dynamic leader later. This shows
that leadership qualities are not just inherited.
2. Another criticism is that this theory ignores the situational variables. A leader with
certain leadership qualities may be effective in one situation and non-effective in
another situation. Example: A leader who is a tough taskmaster might be successful
in managing workers in a factory whereas he might not be successful in managing
white-collar workers in the IT industry.
3. “A Natural Born Leader “- Does this mean that introverts, persons of average social
intelligence, or those of us who are not particularly empathic will not make good
leaders? Certainly not. Example: A great leader in recent history who is an introvert
by nature with average intelligence skills - the Mayor of New York- has Leadership
thrust on him in the aftermath of the September 11 attacks for which he was
subsequently honored.
4. Doing the Right Thing- To be successful, all leaders, whatever their leadership style,
must choose the right action at the right time and “keep a steady eye on the ball”.
They must be courageous, self-aware – and ensure the consistent support of their
team of followers. This is a skill that needs to be practiced.
5. Never Stop Learning- The well-known business coach, Hugo Heij says, “True leaders
ensure they continue to develop their leadership skills throughout their careers,
through learning and development materials and activities” which clearly says that
leaders are made, not born.

Email – hello@edutap.co.in, M - 8146207241 20 | P a g e http://www.edutap.co.in

 Leaders may be gifted with certain intuitive insights but the drive and the inclination to put
it to use for the larger benefit of the society, are evolving traits as one progresses in life
with myriad experiences. There are some people who are born with all the right attitudes
and gained the skills with the right education, which give them an advantage. However,
there is no denying that given the right environment, leaders in their respective areas of
expertise can be developed with training and guidance.

Q.2) What are the major differences between autocratic, democratic and
delegative styles of leadership?

Approach

Introduction: Define leadership style and mention three basic leadership styles given by Kurt
Lewin.

Body: Explain each leadership style with an example and also mention when these leadership
styles can be used.

Conclusion: Explain there is no single appropriate leadership and it differs with situation.
Also, write when these leaderships are best suited.

Answer

Leadership style refers to a leader’s behavior. The behavioral pattern exhibited by a leader
while influencing the followers is described as a style of leadership. Leadership style is the
result of a leader’s philosophy, personality, and experience, and value system. Autocratic,
Democratic, and Delegative styles are the three basic leadership styles given by Kurt Lewin.

Autocratic Leadership or Directive Style or Authoritarian Style:

In this leadership style,

1. Manager retains as much power and decision-making authority as possible

2. There is centralized authority. Staff is not consulted, nor allowed to give any input.
3. Staff expected to obey orders without receiving any explanations
4. Structured set of rewards and punishments

Email – hello@edutap.co.in, M - 8146207241 21 | P a g e http://www.edutap.co.in

 5. Direct supervision is what they believe to be key in maintaining a successful
environment and followership.

Example: Elon Musk is one of the most influential CEOs and entrepreneurs in the world
today. Having exercised an autocratic leadership style at each of his various enterprises,
including car manufacturer Tesla and space exploration agency SpaceX, he has regularly
overseen prosperity and success. Aside from his strong personality and innovative genius,
Musk is ambitiously insistent, setting exceptionally high standards for his hires. This
includes intense scrutiny of the products that they create, even if it means changing his
mind and discarding an idea after months of effort and in-depth planning.

This style can be used when,

1. Effective supervision provided only through detailed orders and instructions

2. Quick Decision making is required
3. New, untrained staff do not know which tasks to perform or which procedures to
follow.

Democratic Leadership Style or Participative Style:

In this leadership style,

1. Encourages staff to be a part of the decision making

2. Keeps staff informed about everything that affects their work and shares decision
making and problem-solving responsibilities
3. Employees like the trust they receive and respond with cooperation, team spirit, and
high morale.
4. Achievement is recognized and encouragement is given
5. There is decentralized authority. Delegation of authority up to a limit to
subordinates to implement decisions.

Example: Indra Nooyi, the CEO, and chairman of PepsiCo, has endeared herself to
employees. She takes an interest in the personal lives of employees and has a vision of the
company’s future. Nooyi made news when she sent letters to the parents of employees to
let them know how proud they should be of their executive adult/children. When one
recruit was undecided about joining the company, Forbes magazine reports, Nooyi called
the candidate’s mom and subsequently landed the executive. She has also made fans of

Email – hello@edutap.co.in, M - 8146207241 22 | P a g e http://www.edutap.co.in

 investors with smart divestitures and acquisitions, such as Tropicana, Quaker Oats, and
Gatorade.

This style is used when,

1. Large and complex problems need to be solved

2. Input from team in decision making is required
3. Environment is highly challenging though not unstable

Laissez Faire Leadership Style or Delegative Style or Free Rein Style:

In this leadership style,

1. The manager provides little or no direction and gives staff as much freedom as
possible
2. The superior decides the broad policies and limits of actions and the entire process is
left to the subordinates
3. All authority or power is given to the staff and they determine goals, make decisions,
and resolve problems on their own
4. Managers exists as contact man with outsiders to bring for his group the information
and resources it needs to accomplish its job
5. It allows followers to self-rule, while at the same time offering guidance and support
when requested. The laissez-faire leader provides the followers with all materials
necessary to accomplish their goals but does not directly participate in decision-
making unless the followers request their assistance.

Example: Warren Buffett is one of those people who has had a lot of success with the
laissez faire leadership model. In the Berkshire Hathaway’s 2010 Annual Report, Buffett
said, “We tend to let our many subsidiaries operate on their own, without our supervising
and monitoring them to any degree. Most managers use the independence we grant them
magnificently, by maintaining an owner-oriented attitude.

This style is used when,

1. Staff is highly skilled, experienced, and educated

2. Followers have pride in their work and the drive to do it successfully on their own.
3. Outside experts, such as staff specialists or consultants are being used.

Email – hello@edutap.co.in, M - 8146207241 23 | P a g e http://www.edutap.co.in

 There is no clear-cut answer to which approach is most appropriate and should be adopted
by leaders. The correct approach depends on the situation. Even though it seems on the
surface that democratic or delegative leadership is a more suitable approach, this is not
always true. In times of economic turmoil, autocratic leadership styles are adopted to a
large extent as leaders want to encounter the least resistance in their operations, which
would lead to short-term outcomes and profits for the organization. There needs to be a
balance among these approaches if organizations wish to sustain profits as well as retain
employees.

Q.3) a) Briefly discuss the different styles of leadership.

Approach

Introduction: Define leadership style.

Body: Write about different kinds of leadership style and support it with an example.

Conclusion: Conclude leadership style depends upon the leader and the situation.

Answer

The Leadership Styles are the behavioral patterns that a leader adopts to influence the
behavior of his followers, it means the way he gives directions to his subordinates and
motivates them to accomplish the given objectives. There are different styles associated
with leadership which are discussed below,

1. Autocratic Leadership: In this style, the leader centralizes the decision-making

power in himself and gives directions to his subordinates as to what they are
supposed to do and how they are required to perform the given task. Example:
Adolf Hitler, Napoleon Bonaparte, and Vladimir Putin are examples of autocratic
leadership—when one leader exercises complete, authoritarian control over a group
or organization.
2. Democratic Leadership: In this style, the leader encourages his subordinates to
contribute their ideas or opinion in group situations and share responsibility in them.
Example: Muhtar Kent Known as a democratic/participative leader, Kent is CEO and
chairman of the board at Coca-Cola. He has a reputation for seeking input from

Email – hello@edutap.co.in, M - 8146207241 24 | P a g e http://www.edutap.co.in

 others on key decisions. Kent has an inclusive style that reflects his commitment to
diversity.
3. Laissez-Faire Leadership: In this style, the leader gives full freedom to his
subordinates to act on their own. Here, the leader once defines the goals, policies,
and the limitations for action and then leaves the remaining process to be
accomplished by the subordinates on their own. Example: Warren Buffett is known
for great success, surrounding himself with people he trusts. He uses this leadership
style to make sure the people he works with can do their jobs efficiently so he
doesn’t have to worry about it, only intervening when it’s absolutely necessary.
4. Charismatic Leadership: Charismatic Leader has an extraordinary and powerful
personality and acts as a role model for his followers who follow him blindly. A good
example of this would be Martin Luther King, “I have a dream”. The speech and idea
provided subordinates a vision of the future, the leader would want them to
accomplish together.
5. Transactional Leadership: Transactional Leaders believe in motivating subordinates
through rewards and incentives and discouraging them through punishments.
Example: Bill Gates is a good example of this style. Gates frequently makes the
rounds to check in on operations and ensure that things are going as planned. He
wants to see that efficiencies are met and nothing is falling through the cracks.
6. Transformational Leadership: Transformational Leaders initiate a revolutionary
change in the behavior, perception, and attitude of the subordinates. They motivate
and inspire the subordinates to develop their own skills to perform better and
ultimately accomplish the vision of the organization. Example: Amazon is the perfect
model of transformational leadership, and shows that by building on a series of
short-term goals (the company started as a bookseller, after all), it is possible to
achieve things on a grander scale.
7. Bureaucratic Leadership: In this leadership, the leader goes by the rules. Another
definition is in which leader goes by the book. It means a leader follows certain rules
which are already written somewhere to make each and every decision. Example:
McDonald's has created and consolidated a Bureaucratic culture that permeates
down to each restaurant location – a mantra that will surely be made it become the
world's first truly fast-food iconic brands

Email – hello@edutap.co.in, M - 8146207241 25 | P a g e http://www.edutap.co.in

 b) Distinguish between a Manager and a Leader.
Approach

Introduction: Define Manager and leader with a quote

Body: Write the differences between Manager and leader and give an example.

Conclusion: Mention Manager and Leader use different approaches but both can be there.

Answer

According to famous educator, author, and businessman Stephen Covey- "Management is

efficiency in climbing the ladder of success; leadership determines whether the ladder is
leaning against the right wall.” Leader and manager have a great role to play in any
organization, in the sense that a leader is the one who inspires, encourages and influence
followers, to work willingly, in the attainment of the organization’s objectives. On the other
hand, a manager is an important link between the firm and its stakeholders, i.e. employees,
customers, suppliers, shareholders, government, society, and so forth.

Differences between Leader and Manager:

1. A leader influences his subordinate to achieve a specified goal, whereas a manager is

a person who manages the entire organization.
2. A leader possesses the quality of foresightedness while a manager has the
intelligence.
3. The manager uses transactional leadership style. As against this, transformational
leadership style is used by the leader.
4. A leader sets directions, but a manager plans details.
5. A manager takes decision while a leader facilitates it.
6. Leaders promote change, but Managers react to the change.
7. A leader aims at the growth and development of his teammates while a manager
aims at accomplishing the end results.

Example: In an organization, it is the manager who performs the five major functions,
i.e. planning, organizing, leading, controlling and coordinating. So, if we say a manager is
also a leader, the statement will be correct, but not all the managers are leaders as only
those managers are considered as a leader who performs the functions like leaders such
as encouraging, motivating, inspiring and so on. Further, the leader can be any person

Email – hello@edutap.co.in, M - 8146207241 26 | P a g e http://www.edutap.co.in

 who influences others, the title is not attached to a management position. On the other
hand, a manager can only be a person holding a management position.

The difference does not mean that a good leader cannot be a good manager or good
manager cannot be a good leader, both can be there. The difference just highlights the
overall difference between their approach.

Q.4) “A successful leader is always an effective leader” — do you vouch

this statement.

Approach

Introduction: Explain the given statement and write your opinion.

Body: Define successful leader and effective leader and give an example of each. Also, write
the differences between both of them.

Conclusion: Conclude with combination of both successful and effective leader works best
for the organization.

Answer

A successful leader and an effective leader are not always the same person. A leader can be
successful, but he may not be effective but on the other hand, if the leader is effective, he is
also successful. If a leader focuses on becoming effective first, success will inevitably come
after.

Successful leaders: If subordinates carry out instructions because of the legitimate reward,
or coercive power of leaders, they would treat them as successful but not effective leaders.
Successful leaders can get results as employees carry out the orders to keep their jobs
intact. Employees’ behavior is compatible with that of the leader because of the leader’s
position and authority to closely supervise the activities of subordinates. Example: Martha
Stewart considered to be a successful leader but not effective. She pays personalized

Email – hello@edutap.co.in, M - 8146207241 27 | P a g e http://www.edutap.co.in

 attention to every detail, and remains meticulous and demanding of her staff. Martha
follow her autocratic leadership style. Critics opine that she allegedly treats people as a
commodity.

Effective leaders: Effective leaders motivate the employees to contribute to organizational

output to their maximum potential. They persuade employees’ behavior towards their
personal goals of job satisfaction and higher-order needs of competence and achievement.
Employees’ behavior is compatible with that of the leader because of their personal power.
Effective leaders help them to achieve personal goals along with organizational goals.
Example: J.R.D. Tata is an excellent example of an effective leader. Appointed Chairman of
Tata Steel in 1939 he held this position, performing with distinction and providing
admirable leadership, right up to 1985. Even today the Tata group of companies, whose
name is synonymous with the highest standards of quality and integrity. That all Tata
products right from salt to trucks enjoy, the trust of lakhs of customers speaks volumes for
the highest kind of leadership provided by J.R.D. Tata.

Differences between Successful leaders and Effective leaders

1. Employees respond to the leader’s position Power in successful leadership whereas

Employees respond to the leader’s personal power in effective leadership.
2. Employees contribute to only Organizational Goals in successful leadership while
Employees perceive organizational goals as fulfilling personal goals also in effective
leadership.
3. Successful leaders affect only the behavior of subordinates whereas Effective leaders
transform the attitudes of subordinates.
4. Successful leaders closely supervise the activities of subordinates but Effective
leaders exercise general supervision.
5. Successful leaders have short-run influence over the behavior of subordinates
whereas Effective leaders have long-run influence over subordinate's behavior.
6. The power flows downwards and can be delegated to subordinates in successful
leadership while in effective leadership power flows upwards as power is accepted
by the subordinates.

There is a downside to effective leadership as well, if it is not successful as instant success is

also very crucial in some situations. Not every organization can afford such a long tim e span
or resources to foster the right attitude among the employees. Most of the time they need
the results quickly. That is where leadership needs to be more on the successful side and
less on the effective side.

Email – hello@edutap.co.in, M - 8146207241 28 | P a g e http://www.edutap.co.in

 For the growth of the organization, employees, and managers themselves, a mix of both
effective and successful way works the best. A leader should be both, successful and
effective, to some extent in order to get the work done and retain motivation among
employees.

Homework Question

Q1) “Most effective leaders show great concern, both for the task and
people.” Comment on the validity of this statement. (400 words, 10
Marks)

Email – hello@edutap.co.in, M - 8146207241 29 | P a g e http://www.edutap.co.in

Email – hello@edutap.co.in, M - 8146207241 1|P a g e http://www.edutap.co.in
Email – hello@edutap.co.in, M - 8146207241 2|P a g e http://www.edutap.co.in
 Introduction
This document consists of 4 sections

1) 10 Marker Questions: In this part we shall be giving you 10 marker questions.

These are supposed to be somewhat direct and easy as compared to 15 marker
questions

2) 15 Marker Questions: In this part we shall be giving you 15 marker questions.

These are supposed to be little complex or consisting of multiple sub questions or
may be an integrated question from concepts of different chapters

3) Previous Year Descriptive Questions: The previous year descriptive questions are
subdivided into two sections
a. 2021 Onwards: We shall cover all previous year questions asked in the exam
from 2021 onwards
b. 2007-2014: We shall cover all relevant previous year questions asked in the
exam between 2007-2014
I. Some questions from previous years might not be covered in any of the
chapter since they might not belong to current syllabus. The syllabus
earlier was different from the current syllabus.
II. Some questions from previous years might not be covered as they are
related to current affairs of that year which is not relevant now.
III. Moreover, some chapters have lot of previous year questions, in those
chapters we have given complete answers to some questions and for the
rest of the questions, the answer outline is given
c. The exam was conducted in objective pattern between 2015 and 2020. For
these years no subjective questions is there

4) Homework Question: There is one homework question for you to think and write.
The answer for this question will not be given by us.

Email – hello@edutap.co.in, M - 8146207241 3|P a g e http://www.edutap.co.in

 Other Guidelines

1. The answers given here are not to be crammed. They are not given from the
perspective of being perfect answers. No answer is a prefect answer. If we ask
500 people to write answers to these questions, then we will get 500 different
answers and we cannot decide which one is perfect answer. The answers given
here is to help you guide towards the approach to answer writing

2. The answers written here may exceed the word limit in some cases. But that is
done intentionally, so that you understand it better and in exam you can
further summarize that information to achieve the desired word-limit.

3. In certain answers, the content/points written may not be covered in the

notes/videos. But that is also done to make you realize that we cannot simply
be bookish in writing answers, rather some content/points need to be written
from our understanding of things. This is called the application part

4. We would recommend that questions to the answers should not be just read.
What you shall do is
a. For 2-3 questions, please write answer in your own words so that you get
practice for descriptive writing. Then try to match your answer with
answer given by us and try to self-evaluate
b. For the rest of the questions, try to make an outline as in what you will
write in this answer. Then try to match your outline with answer given by
us and try to self-evaluate

5. Please refer the videos on “Science and Art of Descriptive Writing” that have
been included earlier in the course. Those videos shall be watched again and
again to get better hold on answer writing

Email – hello@edutap.co.in, M - 8146207241 4|P a g e http://www.edutap.co.in

 10 Markers

Q.1) In what respect are Henry Fayol’s contributions to management different from
Taylor’s scientific Management? (400 words, 10 Marks)
Approach

Introduction: Start with Intro to Henry Fayol’s contribution and Taylor’s Contribution

Body: Define Taylor’s Scientific management and Henry’s scientific management with
example. Discuss the points of difference.

Conclusion: Give balance opinion of two approaches of management in regard to their

implementation in modern day organization with examples.

Answer

Henry Fayol is a French Mining Engineer, who developed the concept of a general theory of
administration and given 14 principles of management. On the other hand, F.W. Taylor is an
American Mechanical Engineer, who advanced the concept of Scientific Management and
given 4 Principles of Management.

Taylor’s scientific Management: "In the past, the man has been first, In the future, the
system must be first" - Frederick Taylor.

Scientific management is sometimes known as Taylorism after its founder, Frederick

Winslow Taylor. He is also known as the father of scientific management. Scientific
management is a theory of management that analyzes and synthesizes workflows. Its main
objective is improving economic efficiency, especially labor productivity. Other objectives of
Scientific management are Quality control, Cost reduction, elimination of wastes, right men
for right work, and incentive wages. It is also known as machine theory.

Example: Toyota Motor Corporation is now the pioneer of the automotive industry,
regardless of sales or quality, Toyota tries to do its best. Toyota has fundamentally adopted
Taylorism. Toyota's management thought that, in order to achieve timely, stable quality
production, it must be grab from operating activities, making all the work be a mutual
integration process, and provide the process of job content, position, and operational
performance.

Email – hello@edutap.co.in, M - 8146207241 5|P a g e http://www.edutap.co.in

 Henry Fayol’s Theory of Management: Fayol called the father of modern operational
management or administrative management. Fayol looked at the problems of managing an
organization from a top management point of view. He was the first one to show concern
for efficiency at a higher level. He used the term administrative management instead of
management. This school regards management as a universal process and it thinks of
management as a way to get things done through people. This school is also called the
Management process school of thought or Universalist school of thought.

Example: Phillips, the famous electronics brand works to ensure employees do not waste
time. They can come to work at any time between 8 am-1 pm and if they do not find any
parking, they can drive back home and take a work from home day immediately instead of
wasting time in finding a parking space. So, according to administrative theory, Phillips is
considering new management styles and activities by providing flexible timing so that time
waste can be reduced, and output can be enhanced rather than going for improving the
efficiency of employees as per Taylor’s Scientific Management.

Differences between Henry Fayol’s management and Taylor’s scientific Management

1. Henry Fayol emphasized the working of top-level management, whereas F.W. Taylor
stressed the working of production-level management.
2. Fayol is oriented towards managerial function. On the contrary, Taylor focused on
production and engineering.
3. The system of wage payment determined by Taylor is a differential piece rate
system, while Fayol stressed on sharing of profits with managers.
4. Taylor advocated Efficiency through simplification and standardization, whereas
Fayol advocated Efficiency through observing certain management principles.
5. The basis of the formation of Fayol’s theory is a personal experience. Conversely,
Taylor’s principles rely on observation and experimentation.
6. The approach of Taylor is termed as Engineer’s approach. In contrast, Fayol’s
approach is accepted as the manager’s approach.

Modern day companies like TATA steel are not only emphasizing on Planning, Organizing,
Commanding, Coordinating, and Controlling as suggested by Fayol’s administrative theory
to improve the management efficiency but also using the scientific techniques like KAIZEN,
Six-Sigma, etc. to increase the production efficiency. Hence, both the management thinkers
have an immense contribution in the field of management, which is not contradictory but
many a times complementary in nature.

Email – hello@edutap.co.in, M - 8146207241 6|P a g e http://www.edutap.co.in

 Q.2) Mention the different schools of management. Discuss the contribution of the
human behaviour School of thought? (400 words, 10 Marks)
Approach

Introduction: Start with Quotation of famous Authors defining management.

Body: Discuss the different schools of management and the contribution of Human
Behavior school of thought with example.

Conclusion: Give a balanced opinion between the Human approaches of management and
other approaches in regard to their implementation in modern day organization.

Answer

"Management is, above all, a practice where art, science, and craft meet" - Henry
Mintzberg.

Management can be defined as the process of administering and controlling the affairs of
the organization, irrespective of its nature, type, structure, and size. The various approaches
to the study of management as propounded by specialists from different disciplines have
come to be called the Schools of Management thought. The different schools of
Management are,

1. Management process school: This school regards management as a process of

getting things done through and with people operating in organized groups. Henry
Fayol is known as the Father of this school.
2. Scientific Management School: A school of organizational thought that attempts to
apply science to the engineering of processes to management. F W Taylor is known
as the Father of this school.
3. System Management School: A school of organizational thought that viewed an
organization as an organic and open system composed of interacting and
interdependent parts called subsystems.
4. Contingency approach: It is an extension of the Systems approach. It is also known
as situational approach, is a concept in management stating that there is no one
universally applicable set of management principles by which to manage
organizations.
5. Bureaucracy School: Max weber was the one who contributed to this school of
thought. He studied the functioning of the church, government, military, and

Email – hello@edutap.co.in, M - 8146207241 7|P a g e http://www.edutap.co.in

 business organizations and believed that bureaucracy was the best form of
management.
6. Human Relations School: A school of organizational thought which focuses on
worker satisfaction, informal workplace organizations, and a means of influencing
employee productivity.

Contribution of human behavior school of thought

Elton Mayo is generally considered the father of the Human Relations school. The theory
emphasized the fact that an organization is a social system and the human factor is the
most important element within it.

Social Factors in Output: Organization is not just consisting of a formal structure but
consists of an informal structure. An organization is a social system where informal relations
exist. Therefore, while motivating workers, social factors shall be considered. Example:
Googleplex in California not only provides free food, state-of-the-art nap pods but also
video game stations, and slides. Google’s office is considered more as an adult playground
rather than a workplace.

Non-Economic Reward: Money is only one of the motivators, but not the sole motivator of
human behavior. Man is diversely motivated, and socio-psychological factors act as
important motivators. Example: Mr. Narayan Murthy returned as CEO of Infosys in 2013
with annual compensation of Rs1, which clearly shows that money is not the sole motivator
of Human behavior.

Group Influence: Workers create informal social groups, and they behave more by the
norms of the informal groups to which they are adhered to. The workers often do not act or
react as individuals but as members of groups. Example: In the Bank Wiring Observation
Room experiment, it has been observed that even after providing a financial incentive
scheme by management to increase the production, the men limited output to well below
the level they could produce because the group believed that management would raise
their expectations. Moreover, the workers who in their “foolishness tried to produce more
than the group norms were isolated, harassed, or punished by the group in several ways.

Supervision: Supervisory climate is important in determining output. Supervisors must be

friendly to the workers, genuinely concerned about their needs and such an attitude from
supervisor impacts the productivity favorably.

Email – hello@edutap.co.in, M - 8146207241 8|P a g e http://www.edutap.co.in

 Two-way Communication: This is necessary as it is not only the supervisors who need to
order but workers must also be given an opportunity to express their feelings to the
supervisors.

The theory is a swing in the opposite direction and is as much incomplete as the scientific
and administrative management approaches. If Taylor and Fayol viewed task and structure
as their central tendencies, human relations researchers saw only the human variable as
critical and ignored the others. Thus, the Human Behavior school of thought must be
observed with other schools of thought to bring completeness.

Q.3) Describe the Systems approach to management. How it differs from the contingency
approach? (400 words, 10 Marks)
Approach

Introduction: Start with the historical background of System approach

Body: Describe the systems approach and contingency approach with examples. Discuss the
points of Difference.

Conclusion: Conclude it keeping a balanced opinion regarding both the approaches.

Answer

Most of the early approaches focused on managers concerns inside the organization. In
1960s, management researchers began to look what was happening in the external
environment outside the boundaries of the organization and introduced two contemporary
management perspectives and they are System approach and Contingency approach.

System theory:

1. It is a basic theory in the physical sciences but had never been applied to organized
human efforts. In 1938, Chester Barnard, a telephone company executive, first wrote
in his book, ‘The Functions of an Executive’, that an organization functioned as a
cooperative system. It wasn’t until the 1960s that management researchers began to
look more carefully at systems theory and how it related to organizations.
2. System – System is a set of interrelated and independent parts arranged in a manner
that produces a unified whole. Organization is made up of “interdependent factors”
including individuals, groups, attitudes, motives, formal structure, interactions,

Email – hello@edutap.co.in, M - 8146207241 9|P a g e http://www.edutap.co.in

 goals, status and authority. Managers coordinates activities in all the parts of the
organization, and they ensure that all the department work together and achieve
their goal. When a manager takes decision, he/she has to consider its impact on the
other department as well. Example: Starbucks knows employees that are treated
well, will in turn, treat customers well. To treat its workforce well, Starbucks offers
all full-time and part-time employees the opportunity to receive full healthcare
benefits, stock options/discounted stock purchase plans, and other meaningful
benefits. The entire system at Starbucks is interrelated and this is also reflected in a
happy customer and that is why Starbuck is one of the most preferred coffee chains
across the globe.
3. In addition, the systems approach implies that decisions and actions in one
organizational area will affect other areas. Example: People's Express, a low-cost
airline that was thriving in the early 1980s, management failed to understand the
application of system theory. Management failed to realize that employee
compensation, and indeed the fate of the entire company, was intricately related to
the value of the stock price, and the value of the stock price was interconnected, or
related, to the slowing of growth in the airline industry as a whole. The decision of
not providing timely compensation not only affected the customer service in short
run but also the stock value in the long run.
4. The systems approach recognizes that organizations are not self-contained. They rely
on their environment for essential inputs and as outlets to absorb their outputs.

Contingency approach:

1. The contingency approach sometimes called the situational approach says that
organizations require different ways of managing. The early management theorists
came up with management principles that they generally assumed to be universally
applicable. Later research found exceptions to many of these principles. For
example, division of labour is valuable and widely used, but jobs can become too
specialized.
2. Management is not based on simplistic principles to be applied in all situations.
Different and changing situations require managers to use different approaches and
techniques. A good way to describe contingency is “If this is the way my situation is,
then this is the best way for me to manage in this situation.” The primary value of
the contingency approach is that it stresses that there are no simplistic or universal
rules for managers.

Email – hello@edutap.co.in, M - 8146207241 10 | P a g e http://www.edutap.co.in

 Example: A manager facing a situation with an employee who regularly shows up late
to work. A manager could have a written protocol for this situation in which there is
only one option, give the employee notice. Under the contingency viewpoint, however,
the manager may decide to better understand the situation by talking to the employee
about why he/she is late to work and then deciding on the most effective and
appropriate course of action. The value in this lies in the information the manager
acquires about the employee. May be there are extenuating circumstances that can be
relatively easy to work around. In this case, the contingency approach allows the
employee to keep her/his job and saves the manager from going through the time and
trouble to dismiss one employee and hire another.

Difference between System Approach and Contingency approach

1. Systems approach just lays down that simply that organization interacts with the
environment. On the other hand, Contingency approach not only talks about
interaction between environment and Organization but also about how managerial
style needs to be changed as per changes in environment.
2. The system approach lays emphasis on the interdependencies and interactions
among the systems and subsystems, whereas the Contingency approach identifies
the nature of interdependencies and the impact of the environment an
organizational design, and managerial style.
3. The system approach treats all organizations alike. Size of organization and its socio-
cultural setting are not considered while the Contingency approach says each
organization is to be studied as a unique entity.
4. The system approach studies organizations at philosophical level, whereas
contingency approach follows action-oriented approach and is so pragmatic. It is
based on empirical studies.
5. The system approach does not comment on validity of classical principles of
management, while contingency approach rejects the blind application of the
classical principles of management.

The contingency theory offers a clearer understanding of the relationship between different
variables of the environment with the organization. Also, this theory is performance-
oriented and directed towards the application of the system theory’s concepts. Hence,
rather than being different, both the theories complement each other.

Email – hello@edutap.co.in, M - 8146207241 11 | P a g e http://www.edutap.co.in

 Q.4) What are skills and skill mixtures which managers at different levels need to
possess? Explain. (400 words, 10 Marks)
Approach

Introduction: Start with some famous quote.

Body: Explain the managerial skills required at different skills

Conclusion: Conclude with the implications of managerial skills in Organization

Answer

"It's not about money. It's about the people you have, and how you're led"-Steve Jobs.

Management is a challenging job. It requires certain skills to accomplish such a challenge.

Thus, essential skills which every manager needs for doing a better management are called
Managerial Skills.

According to Professor Robert Katz, there are three managerial skills,

1. Conceptual Skills
2. Human Relation Skills, and
3. Technical Skills

According to Prof. Robert Katz, all managers require the above three managerial skills.
However, the degree of these skills required varies from levels of management and from an
organization to an organization. The three levels of management typically found in an
organization are low-level management, middle-level management, and top-level
management.

The top-level managers require more conceptual skills and less technical skills. The lower-
level managers require more technical skills and fewer conceptual skills. Human relations
skills are required equally by all three levels of management.

1. Conceptual Skills: It is the ability to visualize the organization as a whole. It includes

Analytical, Creative, and Initiative skills. It helps the manager to identify the causes
of the problems. It helps him to solve the problems for the benefit of the entire
organization. According to Prof. Robert Katz, conceptual skills are mostly required by
the top-level management because they spend more time in planning, organizing,
and problem-solving. Example: Top managers of Motorola understand how the
production process is related to the marketing and finance functions. Their emphasis

Email – hello@edutap.co.in, M - 8146207241 12 | P a g e http://www.edutap.co.in

 is not so much on the precise method of accomplishing specific task as on having a
general understanding of the firm’s operations. This enables them to anticipate the
potential problems that could arise if, a particular production plant experiences
shortage. Managers need conceptual skills to make adjustments when problems like
this occur.
2. Human Relation Skills: These skills are also called Interpersonal skills. It is an ability
to work with people. It helps the managers to understand, communicate and work
with others. It also helps the managers to lead, motivate and develop team spirit.
Human relations skills are required by all managers at all levels of management. This
is so since all managers have to interact and work with people. Example: CEO of
Google, Sundar Pichai has many inspiring qualities. From his humble nature to soft -
spoken persona, he is always perceived as a people person. The CEO of the global
tech giant firmly believes in helping others succeed.
3. Technical Skills: It is the ability to perform the given job. Technical skills help the
managers to use different machines and tools. It also helps them to use various
procedures and techniques. Low-level managers require more technical skills. This is
because they are in charge of the actual operations. Example: A production
supervisor in one of Reliance company manufacturing plant, is likely to need more
technical skill than the company President because he will have to deal with the day -
today manufacturing problems that arise.

Apart from Prof. Robert Katz's three managerial skills, a manager also requires the following
additional managerial skills.

4. Communication Skills: These are required equally at all three levels of management.
A manager must be able to communicate the plans and policies to the workers.
Similarly, he must listen and solve the problems of the workers. He must encourage
a free flow of communication in the organization. Example: Ford Motor Company
has initiated an e-mail newsletter from the CEO to all 145,000 employees. The
employees are allowed to use e-mail to reply to the CEO. This has encouraged more
communication between management and other employees.
5. Administrative Skills: Administrative skills are required in top-level management.
The top-level managers should know how to make plans and policies. They should
also know how to get the work done. They should be able to coordinate and control
different activities of the organization.
6. Problem-Solving Skills: These are also called Design skills. A manager should know
how to identify a problem. He should also possess the ability to find the best
solution for solving any specific problem. This requires intelligence, experience, and
up-to-date knowledge of the latest developments.
7. Decision-making Skills: These skills are required at all levels of management.
However, it is required more at the top-level of management. A manager must be
able to take quick and correct decisions.

Email – hello@edutap.co.in, M - 8146207241 13 | P a g e http://www.edutap.co.in

 Management skills are a collection of abilities that include things such as business planning,
decision-making, problem-solving, communication, and time management. While different
roles and organizations require the use of various skillsets, management skills help a
professional stand out and excel no matter their level. In top management, these skills are
essential to run an organization well and achieve desired business objectives.

15 Markers

Q.1) “Management process is considered to consist of certain functions”. Elaborate and

list these functions in a logical order. (600 words, 15 Marks)
Approach

Introduction: Start with defining management process by using some famous author’s
definition.

Body: Explain the different management functions.

Conclusion: Give a balanced conclusion between the performance of different functions by

managers.

Answer

According to Henry Fayol, “To manage is to forecast and plan, to organize, to command, &
to control”. Whereas Luther Gullick has given a keyword ’POSDCORB’ where P stands for
Planning, O for Organizing, S for Staffing, D for Directing, Co for Co-ordination, R for
reporting & B for Budgeting. But the most widely accepted are functions of management
given by KOONTZ and O'DONNELL i.e., Planning, Organizing, Staffing, Directing, and
Controlling.

Planning: “Give me six hours to chop down a tree and I will spend the first four sharpening
the axe"- Abraham Lincoln

Planning, which is also called forethought, is the process of thinking about and organizing
the activities required to achieve a desired goal. Planning involves deciding in advance what
needs to be done and how to do it. The concept of planning is different from a
plan. Planning is the process consisting of various steps whereas a plan is a commitment to
a particular course of action believed necessary to achieve the specific results.

Email – hello@edutap.co.in, M - 8146207241 14 | P a g e http://www.edutap.co.in

 Example: The homegrown automaker Tata Motors is planning to work towards building a
range of affordable electric cars. A report suggests that the company plans to price its green
cars at not more than a 15-20% premium to conventional petrol/diesel vehicles. Tata
Motors is planning on a combination of network expansion, dealer development, and
product repositioning to turn around its passenger vehicle sales.

Organizing: "For every minute spent organizing, an hour is earned"

Organizing is a process of initiating plan implementation by clarifying jobs and working

relationships among organizational members to achieve the organizational objective. It is a
function in which the synchronization and combination of human, physical and financial
resources take place. All three resources are important to get results.

Example: Walmart’s main strategic goal is to provide quality merchandise at an affordable,

low cost to consumers. To achieve this goal, Walmart has organized it’s operates according
to a cross-docking inventory system. Cross-docking is the process of moving material from
the receiving dock to the shipping dock, bypassing storage. Cross-docking reduces inventory
carrying costs, transportation costs, and costs associated with order fulfillment and material
handling.

Staffing: Staffing is that part of the process of management, which is concerned with
acquiring, developing, employing, appraising, remunerating, and retaining people so that
the right type of people is available at the right positions and at the right time in the
organization. In the simplest terms, staffing in management is ‘putting people to jobs.

Example: As India’s flagship Oil & Gas major, Indian Oil Corporation Limited (IOCL) has been
fulfilling the energy needs of the nation for over six decades. To fuel its future growth,
Indian Oil recruits energetic and dedicated Graduate Engineers with bright academic
records to join Organization. The company conducts a rigorous recruitment process which
includes one of India’s toughest exam GATE qualifications as one of the eligibility criteria.

Directing: "The purpose of Organization is to enable common men to do uncommon

things"- Peter Drucker

Directing and leading comprise the managerial functions of guiding, overseeing, motivating,
and leading people. Directing is also known as activating sometimes. This function is the
executing function of management. The primary function of directing is to deal with human
elements to build personal relationships. In field of management, direction is said to be all
those activities that are designed to encourage the subordinates to work effectively and
efficiently.

Example: As a pioneer of the personal computer revolution, Microsoft co-founder Bill Gates
spent decades working toward his goal of putting “a computer on every desk and in every

Email – hello@edutap.co.in, M - 8146207241 15 | P a g e http://www.edutap.co.in

 home.” He directed all his team members to license its MS-DOS operating system to IBM for
its first personal computer, which debuted in 1981. Afterward, other computer companies
started licensing MS-DOS and from then onwards, the company never looked back. Till he
stepped down as CEO of Microsoft, Bill was known for performing directing functions of
management i.e., guiding, overseeing, motivating, and leading people which also made him
one of the richest persons.

Controlling: Controlling is the process of evaluating actual performance and, if necessary,

taking corrective actions so that the performance is in accordance with planned
performance. Controlling measures, the deviation of actual performance from the standard
performance discovers the causes of such deviations and helps in taking corrective actions.

Example: Tata Motors has won the National Award for Excellence in Cost Management for
the year 2006 due to better control over resource management, efficient utilization of
capacity and working capital, quality augmentation program and R&D efforts, and precise
information on performance.

Although these functions have been introduced in a particular order, it should be apparent
that the different activities happen at the same time in every organization. Leaders often
step up when a crisis or unexpected bump demands immediate action. All managers
perform all of these functions at different times, although a manager’s position or level in
the organization will affect how much of his or her time is spent planning as opposed to
leading or controlling.

Q.2) What do you mean by management role? Discuss Henry Mintzberg’s classification of
basic roles performed by managers in modern organizations. How will you reconcile
management functions and management roles to identify what managers do in the
organization? (600 words, 15 Marks)
Approach

Introduction: Define the management roles.

Body: Explain the different roles as discussed by Henry Mintzberg.

Conclusion: Discuss how you Reconcile Management Functions and Roles.

Answer

In carrying out the responsibilities of planning, organizing, leading, and controlling,

managers take on many different roles. A role is a set of behavioral expectations or a set of

Email – hello@edutap.co.in, M - 8146207241 16 | P a g e http://www.edutap.co.in

 activities that a person is expected to perform. Henry Mintzberg describes a set of ten roles
that a manager fill. These roles fall into three categories. They are Informational roles,
Interpersonal roles, and Decisional roles.

1. Interpersonal Roles: Interpersonal roles of managers are concerned with their

interaction with others, both within the organization and outside. There are three
types of interpersonal roles: figurehead, leader, and liaison. Example: Natarajan
Chandrasekaran performed the figurehead role for TATA Motors when he used to
represent the organization. He used to make an announcement for the launch of
products, interacted with the customers, etc
a. Figurehead: The figurehead performs all symbolic, social, inspirational, legal,
and ceremonial obligations. In this role, the manager is seen as a symbol of
status and authority.
b. Leader: Leader role of manager involves leading his subordinates and
motivating them for willing and enthusiastic contribution. This type of
contribution comes when subordinates see in a manager certain exemplifying
behavior.
c. Liaison: The liaison maintains a network of contacts outside the work unit to
obtain information.

2. Informational roles: This role of a manager include communication - giving and

receiving information both within and outside the organization. There are 3 types of
information roles - Monitor, Disseminator, and Spokesperson role.
a. Monitor: The role of a manager is to constantly collect information about
those factors which affect his activities may be within the organization and
outside it.
b. Disseminator: This role of a manager involves sharing information with the
subordinates who may otherwise not be able in a position to collect it.
c. Spokesperson: In the role, a manager gives important information to the
outsiders which are to be released to them. He maintains public relations
with the outside world.

Example: As CEO of Apple, Steve Jobs played the information role of a manager. Mr. Jobs
performed the Monitor role when he used to gather information for innovative products,
to discover problems and opportunities, and to understand events outside the
organizational unit. Steve also played a Disseminator role when he used to work with the
design team and the important information needed to be transferred to the employees.
When Mr. Cook became active CEO in 2009, Steve used to make decisions and convey them
to him to bring them into action. Mr. Steve was a great spokesperson for Apple. He used to
interact with people outside the organization through seminars, meetings, and interviews.
The reason why people know him really well is, he used to speak to the public on behalf of
Apple.

Email – hello@edutap.co.in, M - 8146207241 17 | P a g e http://www.edutap.co.in

 3. Decisional Role: This role of manager involve making decisions so as to choose the
best alternative which can help in achieving the organizational objectives. There are
4 decision roles – entrepreneur, disturbance handler, resource allocator and the
negotiator.
a. Entrepreneur: Acts as an initiator, designer, and encourages change and
innovation. This role encourages managers to create improvement projects
and work to delegate, empower and supervise teams in the development
process.
b. Disturbance handler: Takes corrective action when the organization faces
important, and unexpected difficulties.
c. Resource Allocator: A manager allocates organizational resources of various
types to different organizational units . He approves budgets, schedules and
sets priorities.
d. Negotiator: A manager negotiates and works out agreements with various
interest groups in the organization such as shareholders employees and
outsiders.

Example: Elon Musk is a leading example for Entreprenuer. As far as initiating business
ventures go, he is today the owner of multiple million-dollar companies which he started
from scratch. Disturbance Handler: One of the ultimate aspirations of SpaceX was to make
reusable launch systems for spacecraft, to reduce the cost of space travel and increas e its
effectiveness. They faced many setbacks and lost millions in damages. Despite all these
upsets, Elon handled all the disturbances effectively and in 2017 they made history by
becoming the 1st to re-launch and land an orbital rocket. Resource Allocator: According to
Business Insider, in 2017 Musk began his rise with a mere $28,000 that he borrowed from
his father. He invested this into making Zip2 which took off and its sale to Compaq earned
Musk $22 million. But he did not rest on his laurels just yet. He started PayPal and He made
his first billion after PayPal was bought by eBay. From $28,000 of borrowed money to a
billionaire, Elon Musk do know how to allocate resources. Negotiator: For any company
aspiring for success, finance is one of the major issues. When Elon sold PayPal to eBay their
initial offer was $400 million, but Musk negotiated his way to a figure in the billions before
he parted way. This shows the high negotiator skill of Elon Musk.

Reconciling Management Functions and Roles

Management functions and management roles do not exist opposite to each other but are
two ways of interpreting what managers do. The mapping between management functions
and management roles can be reconciled as,

Email – hello@edutap.co.in, M - 8146207241 18 | P a g e http://www.edutap.co.in

 1. In planning, the manager performs informational and decisional roles as he collects
various types of information and makes decisions.
2. In organizing, he performs the role of a resource allocator as he allocates resources
to various organizational units. The role of resource allocator comes under decision
rules.
3. In directing, he performs interpersonal and information roles by interacting with his
subordinates, leading, motivating, and communicating with them.
4. In controlling, he performs the monitoring role as he monitors everything and
ensures that if something deviates from the plan, he tries to control it.
5. Staffing function has not been included in management roles though managers at
every level perform this function.

Q.3) What is Nudge theory? Discuss the various techniques through which people can be
nudged. Also highlight the importance of Nudge theory in modern world (600 words, 15
marks)
Approach

Introduction: Define Nudge theory with example.

Body: Discuss the various techniques through which people can be nudged. Highlight the
Importance of Nudge theory in modern world.

Conclusion: Conclude it with implication of Nudge theory in modern world.

Answer

Nudge theory is the science behind subtly leading people to the ‘right’ decision. It works on
the principle that small actions can have a substantial impact on the way people behave.
The Nudge Theory recognizes this as a behavioral trait. It says that people, rather than
being forced, can be encouraged, and influenced to pursue or desist from certain actions
through nudges. Nudge theory was named and popularized by the 2008 book, 'Nudge:
Improving Decisions About Health, Wealth, and Happiness, written by American academics
Richard H Thaler and Cass R Sunstein.

Example: Nudge theory really entered the mainstream with a news item back in 2009 that
described how authorities at Amsterdam airport had installed small fly shape stickers in the
urinals. Men now had something to aim for even subconsciously and spillages were reduced
by 80%.

There are many techniques through which people can be nudged. The main 3 techniques
are discussed below,

Email – hello@edutap.co.in, M - 8146207241 19 | P a g e http://www.edutap.co.in

 1. Social Proof: Refers to the tendency for individuals to look at the behavior of other
people to help guide their own behavior. Many campaigns with respect to social
issues show celebrities behaving in a certain way. Example: Amitabh Bachchan
himself going to the hospital for getting vaccinated against COVID-19 will prompt
other people to behave in the same way.
2. Increasing the Salience of Desired Option: When an individual's attention is drawn
towards a particular option, that option will become more salient to the individual,
and he or she will be more likely to choose that option. Example: In snack shops at
train stations in the Netherlands, consumers purchased more fruit and healthy snack
options when they were relocated next to the cash register.
3. Defaults: A default option is the option an individual automatically receives if he or
she does nothing. People are more likely to choose a particular option if it is the
default option. Example: In Spain, a policy was made that by default everyone is
considered to be an organ donor, but they can opt out if they want through an easy
procedure. After this policy, not many people opted out and organ donation
increased many fold.

Importance of Nudge theory in modern world

Behavioral insights and nudges are currently used in many countries around the world.
Nudge concept now offers vastly bigger implications and applications.

1. Government: Through Nudge, the government can manage various problems.

Examples: In India, the problem of population increase can be handled through a
nudge by giving incentives to the family having two children such as subsidies in the
school fee, etc. And, In 2020, the British government of Boris Johnson decided to rely
on nudge theory to fight the coronavirus pandemic, with Chief Scientific Adviser
Patrick Vallance seeking to encourage “herd immunity” with this strategy.
2. Business: Nudge theory has also been applied to business management and
corporate culture. Particular forerunners in the application of nudge theory in
corporate settings are top Silicon Valley companies. These companies are using
nudges in various forms to increase the productivity and happiness of employees.
Example: Rather than enforcing a certain start time in the morning, they make them
aware of the importance of work-life balance and spending quality time with family.
Emphasis is put on being productive and leaves the office at a designated time in the
evening so as to have balanced life. This nudges workers to come early and complete
their work by evening so as to spend time with family.
3. Healthcare: Nudge theory has also been used in different ways to make health care
professionals make more deliberate decisions in numerous areas. Example: Nudging
has been used as a way to improve hand hygiene among health care workers to
decrease the number of healthcare-associated infections.

Email – hello@edutap.co.in, M - 8146207241 20 | P a g e http://www.edutap.co.in

 4. Investments/Savings: Tax breaks under Section 80C are a nudge to encourage
people to invest in financial instruments such as the Public Provident Fund and
equity-linked savings schemes, in place of gold or property. Mutual fund SIPs, by
making regular investing the default option, are also a nudge to investors to avoid
panicking during market falls.
5. Fundraising: The nudge theory can also be applied to fundraising. It can help to
increase donor contributions, increase continuous donations from the same
individual and help to entice new donors to give. There are some simple strategies
used when applying nudge theory to this area. The first strategy is to make giving
easy. Creating default settings that automatically enroll a donor for continuous
giving or prompts them to give every so often encourages individuals to continue
giving. The second strategy to increase donors is to make giving more enticing. Some
ways to do this involves increasing a person’s motivation to give through rewards,
personalized messages, or focusing on their interests.

By offering insights into how humans think and act, the Nudge Theory can be used to drive
favorable behavior and avoid unfavorable ones, without resorting to drastic interventions
such as penal action or outright bans. Often, inertia, lack of knowledge, or poor incentives
lead us to select sub-optimal choices. If a nudge helps us choose an option that is also
socially desirable, it could mean better public healthcare, civic sense, and social harmony.

Previous Year Questions – 2021 Onwards

Please be informed that in this section we will be discussing all the descriptive Previous Year
Questions (PYQs), all the questions appearing in this section has a tag of the year in which
that question was asked. If there is no question in this document on any exam from a
particular year or years, it means that no question was asked for that exam in that
year(s) or exam itself was not conducted in that year.

There was no question asked from general management in 2021 and 2022

Previous Year Question- 2007-2014

The marks for these questions are not mentioned because before 2015, the pattern was
different. The questions were not of 10 marks or 15 marks. The year is also not mentioned
since they are all very old papers, and the year is of not much relevance to us.

Email – hello@edutap.co.in, M - 8146207241 21 | P a g e http://www.edutap.co.in

 Q.1) Discuss the advantages and disadvantages of group decision making? (400 words, 10
marks)
Approach

Introduction: Define Decision making with example.

Body: Write the advantages and disadvantages of group decision making.

Conclusion: Conclude it keeping a balance between the advantages and disadvantages.

Answer

Decision making: "Whenever you see a successful business, someone once made a
courageous decision"- Peter Drucker.

Decision-making is regarded as the cognitive process resulting in the selection of a belief or

a course of action among several alternative possibilities. Decision-making is the process of
identifying and choosing alternatives based on the values, preferences, and beliefs of the
decision-maker. Group decision-making is a situation faced when individuals collectively
make a choice from the alternatives. Group decisions may involve assimilating a huge
amount of information, exploring many different ideas, and drawing many strands of
experience.

Example: In 1994, Amazon started creating the greatest revolution in decision-making with
one of the oldest cornerstones of success in business- customer obsession. Amazon’s Jeff
Bezos focused on the oldest of old business principles—extraordinary customer obsession
to the level that each customer is treated individually and turned into the ultimate business
purpose of his company. As everyone knows, digitization was the engine that enabled the
company to treat each one of its more than 100 million customers as if they were shopping
at a corner store in a small town. But the true magic in how Amazon built this system isn’t
just technological—it’s organizational. It’s all about making better decisions and making
them fast.

Advantages of Group decision making: “The more the merrier.”

1. More information: A group is better equipped as far as information is concerned. An

individual cannot have all the information that is available to a group as it consists of
several individuals.
2. Diversity of views: A group always has the advantage of varied views. This is because
a group always has more than one member, and since every member is unique,
there is bound to be a variety in their views also. This is also the reason why there

Email – hello@edutap.co.in, M - 8146207241 22 | P a g e http://www.edutap.co.in

 are varied approaches to solving a problem. As group decisions tend to cover a
greater area, they provide better insight into decision-making.
3. Degree of involvement: The members of a group feel involved with a given problem.
This minimizes their resistance. It strengthens an organization and facilitates
decision-making.
4. Greater acceptability: The views expressed by a group have more acceptance than
those from an individual. This is because the decisions are not imposed but are part
of a larger consensus. A group decision is automatically assumed to be more
democratic, and the decision of an individual can be perceived as being autocratic.

Disadvantages of Group Decision making:

1. Time-consuming: A group involves several individuals. Getting them organized,

planning and coordinating their meetings, defining and explaining to them the
purpose of a meeting and the goals, and finally reaching a solution or arriving at a
decision can be quite cumbersome. Making decisions in a group can, thus, be time-
consuming.
2. Expensive: Group decision-making is quite expensive in terms of time, money,
energy, and man-hours. There is also a theory called Collective theory, which says
that the larger a group gets, the less is the individual contribution from each
member.
3. Individual Domination: Certain people due to their position or age may dominate in
group decision-making and thereby defeating the purpose.
4. Lack of responsibility: It is difficult to fix responsibility in a group. In an organization,
it is often essential to fix responsibility before a problem can be solved.

Group decision making is effective and preferred when there is complex problems at hand
where views and opinions from a different individual can equally contribute to a result of a
successful decision. It is more of an advantage when it is a topic related to the concern of
many individuals at stake because collective decision making can give their views without
being partial. But if there is a particular or a matter involving limited people concerning
group discussion is a disadvantage or is a backlog when such a situation is at hand.

Q.2) “Management is development of people, not direction of things”. Discuss. (400

words, 10 marks)
Approach

Introduction: Define management as a human process.

Body: Write the implications of management as Human Process

Email – hello@edutap.co.in, M - 8146207241 23 | P a g e http://www.edutap.co.in

 Conclusion: Conclude it with the importance of management as a human process.

Answer

“Management is the development of people and not the direction of things.” –– Lawrence
A Appley

According to Appley L, Management is essentially personnel management. It means the

development of human resources. In other words, development of skills of personnel. We
cannot use the term management for any inanimate things like money, materials, etc. We
do not build automobiles, airplanes, refrigerators, radios, etc. We build men and women,
and these human resources build products. Human resources are our greatest assets. They
have unlimited potential. Hence, management is a human process, and it is natural that
management must give special attention to the development of human resources.

Management as a Human Process has the following implications:

1. A manager achieves results through and with other people. It means both leader and
led are important.
2. In order to get things done through other people, a manager must delegate
authority effectively.
3. It is necessary to make decisions at all levels and in all situations.
4. Effective motivation and democratic managerial leadership are the keys to sound
management.
5. People cannot be motivated to yield the best results through negative instruments
such as fear of punishments, the threat of unemployment, fines, and penalties.
6. All managerial functions are essential for getting things done through other people.
7. Getting things done through others becomes easier when people do things because
they themselves want to do and not because their boss wants them to do.
8. Management by participation, management by objectives or results, and
management by the delegation are helpful in getting things done through others.

Management is a process in which people come together to achieve common objectives. Its
major purpose is to identify the potential of human capital. Doing a SWOT analysis that is an
analysis of their strengths and weakness, dividing the work to be done, and allocating it
according to one's capability would be beneficial for the organization. Through a separate
dimension of management of people, it links the personal objective with organizational
objectives and ensures both of them are satisfied.

Email – hello@edutap.co.in, M - 8146207241 24 | P a g e http://www.edutap.co.in

 Q.3) “Decentralization is not necessarily good; nor centralization is necessarily bad”.
Discuss (400 words, 10 marks)
Approach

Introduction: Can start directly with Body or can use some real-life example/quotes.

Body: Define Centralization and Decentralization with example and write the factors affecting
both.

Conclusion: Conclude it by keeping a balance between the centralization and decentralization

for an organization.

Answer

"The real trick in the highly reliable system is somehow to achieve simultaneous
Centralization and Decentralization"- Karl Weick

Centralization: It refers to the retention of control by the TOP Management in the area of
decision-making. Example: More centralized management is usually seen in highly
competitive industries, where companies specialize in similar products to their competition.
A common example is Apple computers, where most of the direction of the company is
orchestrated at the very top (formerly Steve Jobs himself), in which the lower levels of
management and employees very tightly organized to execute those goals.

Decentralization: It refers to the participation of employees in the decision-making process.

Example: Coca-Cola follows decentralization within centralization. This means that local
managers and the heads of departments in addition to the Country Heads in the various
markets that the company operates in are free to decide on the appropriate strategies for
their territories as long as they conform to the global norms and global culture that
permeates the organization. This decentralization within centralization is the hallmark of
Coca-Cola.

The term centralization and decentralization can also be used to refer to the organizational
aspects such as administrative process, location of the firm, different functions that are
being carried out, and the extent to which authority is delegated.

Since organizations cannot be either completely centralized or decentralized, the challenge

for managers is to work out the right balance between these two extremes.

Factors Affecting Centralization/Decentralization

Email – hello@edutap.co.in, M - 8146207241 25 | P a g e http://www.edutap.co.in

 A variety of factors can influence the extent to which a firm is centralized or decentralized.
The following is a list of possible determinants:

1. Size of the organization: The larger the size of the organization, the more urgent is
the need for decentralization.
2. The external environment in which the firm operates: The more complex and
unpredictable this environment, the more likely it is that top management will let
low-level managers make the important decision.
3. Rate of change of Organization: If the business is fast developing and it is facing
problems in the expansion then it is more likely that decentralization will be done.
4. The nature of the decision itself. The riskier or the more important the decision, the
greater the tendency to centralize decision making.
5. The abilities of low-level managers. If these managers do not have strong decision-
making skills, top managers will be reluctant to decentralize. Strong low-level
decision-making skills encourage decentralization.

BALANCE – THE KEY TO CENTRALIZATION/DECENTRALIZATION

There is no simple answer to the question whether centralization or decentralization is the

preferable option for an organization. Decentralization is not a proper solution for all
problems, and centralization is not necessarily bad. For example: McDonald’s uses
centralization to get a standardized menu everywhere. The exact same number of pickles is
put on each burger no matter where you are in the world. The major problem caused by
decentralization is, an organization is loss of control. It is not advisable for an organization
to decentralize to such an extent that organizational goals are forgotten and the existence
of the organization as a unified entity is threatened. Therefore, an organization should
strike a balance between centralization and decentralization.

An organization should opt for centralization in certain major policy areas at the top level
such as financing, overall profit goals, and budgeting, new product programs, basic
personnel policies, development and compensation of managerial personnel, major
marketing strategies, etc. The organization can also decide to decentralize routine and
monotonous tasks that subordinates at the lower level can carry out without much
guidance from superiors. This would enable managers to focus their attention on strategic
and important issues.

Email – hello@edutap.co.in, M - 8146207241 26 | P a g e http://www.edutap.co.in

 Q.4) What is control? What are the essentials of a good control system? (400 words, 10
marks)
Approach

Introduction: Can start directly with Body or can use some real-life example/quotes.

Body: Define Control and discuss the essentials of a good control system.

Conclusion: Conclude it with the importance of a good control system for an organization.

Answer

"If cybernetics is the science of control, Management is the profession of control" - Stafford
Beer.

Control is a primary goal-oriented function of management in an organization. It is a

process of comparing the actual performance with the set standards of the company to
ensure that activities are performed according to the plans and if not then taking corrective
action. Controlling is performed at the lower, middle, and upper levels of the management.

Example: Control is basic to Bill Gate’s nature and his management practice. He has an
obsession with detail and with checking up. Authoritarian leaders like to keep control. Bill
Gates required so much control that he even signed off the expenses of Steve Ballmer who
was second in command.

Planning and controlling go hand in hand. There can be no control without a plan and plans
cannot be successfully implemented in the absence of controls. Controls provide a means of
checking the progress of the plans and correcting any deviations that may occur along the
way.

Essentials of a good control system

1. Suitability. The nature and need of the activity will help in determining a good system of
control. Controls in a production department will be different from those used in marketing
departments. Control for the production manager will be different from control for a
supervisor.

2. Prompt reporting. If there are any deviations from the plans and standards, they must be
reported promptly and immediately. For example, the organization like Nuclear Power
Corporation of India keeps a very high standard of reporting. The company has learned a lot

Email – hello@edutap.co.in, M - 8146207241 27 | P a g e http://www.edutap.co.in

 from the best of the global practices and if any deviation is observed in the operation,
management take strict actions to brought it to standard.

3. Forward-looking. A good control system should avoid the possibility of getting similar
deviations in the future. All potential deviations should be corrected. For Example: SEBI,
Regulator of Capital Market, has formed multiple committees over the period of time.
Recent example is of Primary Market Advisory Committee (PMAC) established not only to
look into the current regulation of the market, but also the future possibility of
development of primary market.

4. Focus on strategic points. A good system of control not only points out the deviations or
exceptions but also pinpoints where they are vital or strategic.

5. Flexible. A good control system should remain workable even when the plans are
changed, or standards are altered.

6. Objective. To have effective control, there should be objective, precise and suitable
standards. They should be definite and determinable.

7. Economical. The cost of installation and operation of a control system should be justified
by its benefits.

8. Understandable. A control system should be clear and easily understandable to the

people who will use it, so that control becomes easy, smooth, and meaningful.

9. Remedial action. A good control system not only detects deviation but also suggests
practical corrective action. Koontz and O’Donnell state that an adequate system of control
should disclose where failures are occurring, who is responsible for them, and what should
be done about them.

Control is necessary in every organization to ensure that everything is going properly. Every
manager, therefore, should have an effective and adequate control system to assist him in
making sure that events conform to plans. Any good control system will follow these
principles. If any part of it is ignored, then controlling the organization’s resources will be
very difficult for managers.

Q.5) “Delegation of authority is not loss of power; it is enhancement of power”. Examine

this statement critically. (400 words, 10 marks)

Email – hello@edutap.co.in, M - 8146207241 28 | P a g e http://www.edutap.co.in

 Approach

Introduction: Define Delegation with example

Body: Discuss the principles of delegation and benefits of delegation

Conclusion: Conclude with the implication of Delegation of authority in an organization.

Answer

According to F.C. Moore, "Delegation means assigning work to the others and giving them
authority to do so."

Delegation of power is also known as Delegation of Authority. It is one of the vital processes
for any organization. It is inevitable along with the expansion and growth of the
organization. Delegation means assigning certain responsibilities along with the necessary
authority by the management of the organization to the employees. Delegation does not
mean the surrender of authority by the management. The delegation does not lead to
dilution of authority and power. It is actually an enhancement of power.

Example: "Two-Pizza rule" is a term coined by Jeff Bezos from his personal experience. He
says, if you can’t feed your team with two pizzas then your team is too large to manage.
Over the years Bezos has learned that delegating to large teams can cause
miscommunication and increase the chances of a project stalling. To avoid this, he sticks
with small teams, delegating projects to individuals who he knows can get the job done. By
decreasing the pool of players down to a select few, Bezos feels he’s empowering his
employees. They’ll have a better chance to be innovative and push ideas through, in
contrast to larger teams where it takes longer to get everyone on the same page and
bickering is prevalent.

Principles of Delegation

1. Principle of result expected: It suggests that every manager before delegating the
powers to the subordinate should be able to clearly define the goals as well as
results expected from them.
2. Principle of absolute responsibility: It says that the authority can be delegated but
responsibility cannot be delegated by managers to their subordinates which means
responsibility is fixed. The manager at every level, no matter what his authority is, is
always responsible to his superior for carrying out his task by delegating the powers.
3. Principle of Authority level: This principle suggests that a manager should exercise
his authority within the jurisdiction/framework given. No misuse should be done

Email – hello@edutap.co.in, M - 8146207241 29 | P a g e http://www.edutap.co.in

 4. Unity of Command: Each person shall be accountable only to one superior as he
cannot serve two masters.
5. Scalar Chain: Refers to a chain of direct authority relationship from one superior to
subordinate throughout the organization.

Benefits of Delegation

1. Through delegation, a manager can divide the work and allocate it to the
subordinates. This helps in reducing his workload so that he can work on important
areas such as - planning, business analysis, etc. Managers can concentrate on
important tasks and can-do better decision-making.
2. Delegation of authority in a way gives enough room and space to the subordinates
to flourish their abilities and skill. Through delegating powers, the subordinates get a
feeling of importance. Delegation motivates and helps to break the monotony.
3. Subordinates learn new skills while performing delegated tasks and become ready to
move up the ladder.

Delegation of authority is a very function of the management for achieving success. It is

needed in every organization which is run professionally and efficiently. When delegation is
done properly and for the right reasons, it helps foster a climate of trust and creates growth
opportunities for the entire organization.

Q.6) What are behavioral implications of control?

Approach

Introduction: Define controlling as function of management/Quote some report/real life

examples.

Body: Write about the behavioural implications of control.

Conclusion: Implication of behavioural aspects of control for the managers.

Hint for the Answer

Points for Body: -

Some of the behavioural implications of control are as follows:

Email – hello@edutap.co.in, M - 8146207241 30 | P a g e http://www.edutap.co.in

 1. Control affects individual freedom. Hence, it is common for individuals to resist certain
controls if such controls put constraints on their freedom.

2. Control carries certain status and power implications. For example, a quality control
inspector may carry more power than a line supervisor and this may be resented.

3. When controls are based upon subjective and personal judgements as against
quantified performance, standards and appraisals, these may create interpersonal or
intergroup conflicts within the organization.

4. Excessive number of controls may limit flexibility and creativity.

5. Controls may influence the generation of invalid and inaccurate information. For
example, if the top management habitually reduces budget requests when reviewing them
(a control activity), then the lower management, when proposing a new budget or a new
project may overstate the cost of resources needed.

6. Controls can be resented by employees if they have no control over the situation.

7. The control system must synchronize to create a balance among all affecting and inter-
connected variables. The standards should complement each other and not contradict each
other. For example, a control system which emphasizes increased sales as well as a
reduction in advertising expenditure at the same time. May seem contradictory to the
marketing manager and thus may be frustrating for him.

Q.7) What is directing? Explain the principles and techniques involved in directing.
Approach

Introduction: Define Directing with some real-life examples.

Body: Explain the principles and techniques involved in directing with real life examples.

Conclusion: Implication of Directing for managers in modern day organization.

Hint for the Answer

Points for Body:

Email – hello@edutap.co.in, M - 8146207241 31 | P a g e http://www.edutap.co.in

Email – hello@edutap.co.in, M - 8146207241 32 | P a g e http://www.edutap.co.in
 Q.8) “Planning is the bridge between the present and the future”. Discuss.

Approach

Introduction: Define Planning using real life example.

Body: Discuss the Characteristics of Planning that deals with the present situation and the
future situation with real life example

Conclusion: Conclude with comments justifying the given statement.

Hint for the Answer

Points for Body:

Email – hello@edutap.co.in, M - 8146207241 33 | P a g e http://www.edutap.co.in

 Q.9) a) Explain the terms “centralization” and “decentralisation”.

Approach

Introduction: Can Start Directly from the Body or can also start with defining Decision
making via real life example and then linking it to body.

Body: Explain Centralization and Decentralization with Examples.

Conclusion: Conclude with example justifying that both are complementary to each other.

Hint for the Answer

Points for Body:

Email – hello@edutap.co.in, M - 8146207241 34 | P a g e http://www.edutap.co.in

 Q.9) (b)Explain the role of delegation of authority in making decentralisation effective.

Approach

Introduction: Define Delegation of Authority with real life example.

Body: Explain the role of delegation of authority in making decentralisation effective.

Conclusion: Conclude – how Decentralization and delegation are complementary.

Hint for the Answer

Points for Body:

Steps for Accomplishing Effective Decentralization with delegation of authority.
1. Establishing appropriate centralization: There should be centralised management which
becomes the nerve centre of the enterprise. All the plans are formulated and
communicated for the overall guidance and direction of each part of the company’s activity.
Organisation structure is planned, major activities are co-ordinated and control is exercised
in terms of plans developed. Diversification requires effective delegation of authority.

2. Developing managers: In a centralised management, there is a need of few top

managers who make ultimate decisions. But in decentralised management, there is a need
of management personnel at every level of the organisation. Companies that favour
decentralisation may face shortage of managers. Thus, there is a need for the development
of managers who possess independent thinking and capabilities for making decentralisation
effective. Delegation of authority can help in this by selecting the right person for the right
job.

3. Grant the necessary authority: Managers in a decentralised organisation tend to frame

the policies according to their own likings and delegation of authority can help in granting
the necessary authority.

4. Providing for communication and co-ordination: As such there is need for

communication and co-ordination. Managers are required to know the thinking of both
centralised and other decentralised managers, only then they will be in a position to
achieve uniform plans in an organisation. Their time of action should be planned so that it
matches and integrates with other company units. Delegation of authority explain the job
and the objectives clearly and thus provides a way for coordination and better
communication.

Email – hello@edutap.co.in, M - 8146207241 35 | P a g e http://www.edutap.co.in

 5. Establishing adequate controls: Decentralisation implies entrusting responsibility to each
manager according to his capacity i.e., he should be able to do it without harming the
purpose and integrity of the enterprise as a whole. The autonomous manager is given
authority to act independently to the extent which can be checked by the centralised
management. In order to make decentralisation effective, management must develop
system to evaluate their performance. Delegation of authority helps Keep in touch with the
delegate for support and monitoring progress via Communication, training and control.

Conclusion:
According to one definition: "Decentralization, or decentralizing governance, refers to the
restructuring or reorganization of authority so that there is a system of co-responsibility
between institutions of governance at the central, regional and local levels according to the
principle of subsidiarity, thus increasing the overall quality and effectiveness of the system
of governance while increasing the authority and capacities of sub-national levels."

Q.10) What is decision making? What is the role played by Management Information
System in decision making?

Approach

Introduction: Define Decision Making with real life example.

Body: Explain the role Management Information System in decision making.

Conclusion: Conclude with implication of MIS in modern day organization with example.

Hint for the Answer

Points for Body:

Email – hello@edutap.co.in, M - 8146207241 36 | P a g e http://www.edutap.co.in

 Q.11) “Sound organization is an essential prerequisite of efficient management.” Explain.

Approach

Introduction: Define Sound Organization with real life example.

Body: Explain the importance of Sound organization in management.

Conclusion: Conclude with an agreement to the statement given with real life example.

Hint for the Answer

Email – hello@edutap.co.in, M - 8146207241 37 | P a g e http://www.edutap.co.in

 Points for Intro:
Sound Organization meaning - Sound organisation, facilitates the performance of various
managerial functions by division of labour, consistent delegation of job, definition and
clarity of authority and responsibility relationship.

Points for Body:

Sound organization is an essential prerequisite of efficient management. It helps an
organization in the following ways:

1. Enlarges abilities: It helps individuals to enlarge their capabilities. Division of work

enables an individual to specialize in the job in which he is proficient, leading to better
utilization of resources and talents.

2. Facilitates administration: It facilitates administration by avoiding waste motions,

overlapping work and duplication of effort. Departmentation enables proper planning of
work. Confusion and misunderstanding, over who is to perform what work, is avoided by
specifying the role of managers clearly. Proportionate and balanced emphasis is put on
various activities.

3. Facilitates growth and diversification: Sound organization helps in keeping activities

under constant vigil and control. The organization can undertake more activities without
dislocation. Talents and resources are put to good use. Opportunities are seized quickly and
exploited fully, which ultimately pave way for growth and diversification.

4. Permits optimum use of resources: Human, technical and material resources are put to
good use. Right persons are given right jobs. There is proper allocation of work. People
know that they are supposed to do, well in advance. Necessary functions are determined
and assigned, so that personnel and physical facilities are utilized effectively.

5. Stimulates creativity. It offers stimulating opportunities to people at all levels, to use

their skills on jobs best suited to their nature. Delegation helps people at lower levels to do
more challenging work. The higher ups, in turn, can concentrate on strategic issues putting
their creative abilities to good use.

6. Facilitates coordination: Organization is an important way of achieving coordination

among different departments of an enterprise. Clear authority relationships and proper
assignment of work facilitates the task of achieving coordination at all levels. Poor
organization leads to improper arrangement of duties and responsibilities.

Email – hello@edutap.co.in, M - 8146207241 38 | P a g e http://www.edutap.co.in

 Q.12) (a) Explain the terms “authority” and “responsibility.”

Approach

Introduction: Can Start Directly from the Body or can also start with the objective of
Authority and responsibility in an organization with real life example.

Body: Explain the terms authority and responsibility with real life example.

Conclusion: Conclude with the help of principle of parity of authority and responsibility and
justifying it with a real-life example.

Hint for the Answer

Point for Intro- In an organization, dividing work among people and coordinating their
activities towards a common objective need to be done efficiently. Authority and
responsibility are two of the most important components of a smooth-functioning business.

Points for Body:

Email – hello@edutap.co.in, M - 8146207241 39 | P a g e http://www.edutap.co.in

 Homework Question

Q1) What is nudge theory? How can nudge theory be helpful in leading change in an
organization? Also highlight the criticism of Nudge theory. (600 words, 10 Marks)

Email – hello@edutap.co.in, M - 8146207241 40 | P a g e http://www.edutap.co.in

Email – hello@edutap.co.in, M - 8146207241 1|P a g e http://www.edutap.co.in
Email – hello@edutap.co.in, M - 8146207241 2|P a g e http://www.edutap.co.in
 Introduction
This document consists of 4 sections

1) 10 Marker Questions: In this part we shall be giving you 10 marker questions.

These are supposed to be somewhat direct and easy as compared to 15 marker
questions

2) 15 Marker Questions: In this part we shall be giving you 15 marker questions.

These are supposed to be little complex or consisting of multiple sub questions or
may be an integrated question from concepts of different chapters

3) Previous Year Descriptive Questions: The previous year descriptive questions are
subdivided into two sections
a. 2021 Onwards: We shall cover all previous year questions asked in the exam
from 2021 onwards
b. 2007-2014: We shall cover all relevant previous year questions asked in the
exam between 2007-2014
I. Some questions from previous years might not be covered in any of the
chapter since they might not belong to current syllabus. The syllabus
earlier was different from the current syllabus.
II. Some questions from previous years might not be covered as they are
related to current affairs of that year which is not relevant now.
III. Moreover, some chapters have lot of previous year questions, in those
chapters we have given complete answers to some questions and for the
rest of the questions, the answer outline is given
c. The exam was conducted in objective pattern between 2015 and 2020. For
these years no subjective questions is there

4) Homework Question: There is one homework question for you to think and write.
The answer for this question will not be given by us.

Email – hello@edutap.co.in, M - 8146207241 3|P a g e http://www.edutap.co.in

 Other Guidelines

1. The answers given here are not to be crammed. They are not given from the
perspective of being perfect answers. No answer is a prefect answer. If we ask
500 people to write answers to these questions, then we will get 500 different
answers and we cannot decide which one is perfect answer. The answers given
here is to help you guide towards the approach to answer writing

2. The answers written here may exceed the word limit in some cases. But that is
done intentionally, so that you understand it better and in exam you can
further summarize that information to achieve the desired word-limit.

3. In certain answers, the content/points written may not be covered in the

notes/videos. But that is also done to make you realize that we cannot simply
be bookish in writing answers, rather some content/points need to be written
from our understanding of things. This is called the application part

4. We would recommend that questions to the answers should not be just read.
What you shall do is
a. For 2-3 questions, please write answer in your own words so that you get
practice for descriptive writing. Then try to match your answer with
answer given by us and try to self-evaluate
b. For the rest of the questions, try to make an outline as in what you will
write in this answer. Then try to match your outline with answer given by
us and try to self-evaluate

5. Please refer the videos on “Science and Art of Descriptive Writing” that have
been included earlier in the course. Those videos shall be watched again and
again to get better hold on answer writing

Email – hello@edutap.co.in, M - 8146207241 4|P a g e http://www.edutap.co.in

 10 Markers
Q.1) What do you mean by organizational behavior? What are the various contemporary
issues related with organizational behavior? (400 words, 10 Marks)

Approach

Introduction: Start with a quote on organizational behavior, and define organizational

behavior.

Body: Briefly discuss the reasons for rising of contemporary issues in organizational behavior
and explain different contemporary issues.

Conclusion: Conclude by explaining how managers could solve these issues by using
organizational behavior concept.

Answer

"An organization, no matter how well designed, is only as good as the people who live and
work in it." - Dee Hock

Organizational behavior is concerned with understanding, predicting, and influencing

human behavior in organizational setting. Organizational behavior is the analysis of an
organization’s structure, functions, and the behavior of its people. Behavioral study
encompasses both groups as well as individuals.

Modern organizations have become very complex. Rapidly changing environment, change
in the nature of work force, technological advancements and globalization have posed
major challenges for the OB managers. In order to survive in such a dynamic business world,
managers have to be very sensitive and responsive to the changes occurring in the
environment. The major contemporary issues related with organizational behavior are
discussed below,

1. Responding to the Globalization: Globalization is a process by which people of the

world are united into a single society. This process is a combination of economic,
technological, socio-cultural and political forces. globalization has led to emergence
of cross-cultural dynamics because people from different countries having different
culture work together
2. Managing Workforce diversity: Workforce diversity means the heterogeneous
composition of employees of an organization in terms of age, gender, language,

Email – hello@edutap.co.in, M - 8146207241 5|P a g e http://www.edutap.co.in

 ethnic origin, education, marital status, etc. Managing such diversity is really a
challenge to HRM professionals. The main reason to employ heterogeneous category
of employees is to tap the talents and potentialities, harnessing the innovativeness,
obtaining synergetic effect among the divorce workforce. Example: Mastercard
consistently makes it into the Top 10 of Diversity Inc’s 50 Best Companies for
Diversity list. They believe that “diversity is what drives better insights, better
decisions, and better products. It is the backbone of innovation”. A particularly
unique project that Mastercard has executed over the past few years involves
getting older employees in the company more active when it comes to social media.
To address generational barriers, “Yo Pros” BRG (the Young Professionals Business
Resource Group) offers a one-on-one ‘Social Media Reverse Mentoring’ program to
older employees who want to become familiarized with the platforms.
3. Integrating mergers and acquisitions: Every organization strives for growth which
may come either through grassroots projects or merger and acquisition.
Liberalization has paved the way for mergers and acquisition and many companies
like Hindustan Unilever, Maruti Suzuki, etc. have become conglomerated through
this process. While mergers and acquisitions have business sense as they result in
synergistic effect, they create the challenge of integrating acquiring and acquired
companies. While integration of non-human dimensions is easier, problem comes in
people integration because of two reasons, and they are people attrition and
difference in management practices.
4. Improving customer service: In the present context customers have become kings
because of availability of products from alternative sources. In this situation, every
organization tries to retain its customer base by improving customer service. For
providing customer services, organizations are using various techniques like personal
contacts, contacts through Internet, phones etc. In these contexts, employees of the
organizations play key role. They must deal with customers in such a way that
customers feel satisfied. This requires appropriate behavior on the part of
employees. Knowledge of organizational behavior helps the employee to adopt
appropriate behavior. Example: Apple is the brainchild of the man who epitomized
excellent customer service, Steve Jobs. Continuing his legacy, Tim Cook is leaving no
stone unturned to ensure his customers remain loyal. Apple even operates a
personalized support portal where you can view every Apple product you have ever
bought and receive support for the same.
5. Improving Product Quality: With the increased competition at the global level and
discerning customers more and more organizations are becoming conscious about
the quality of their products/services. Quality is a sense of appreciation that
something is better than something else increasing quality awareness has generated
the adoption of practices like TQM, Kaizen and Six sigma, etc. Example: Some of the
companies who have implemented these methods include Ford Motor Company,
Phillips Semiconductor, SGL Carbon, Motorola and Toyota Motor Company, etc.

Email – hello@edutap.co.in, M - 8146207241 6|P a g e http://www.edutap.co.in

 6. Improving people skills: It has been seen that employees of an organization should
have three types of skills: technical, human, and conceptual. It has been observed
that technical people have proficiency in their discipline, but they lack in human
skills. Therefore, their effectiveness is adversely affected. Organizational behavior
aims at improving human skills of people by providing knowledge about what type of
human skills are relevant and how these skills may be developed. Example:
Companies like Google, Microsoft, Amazon and many other multinational companies
spend millions on training and development of its employees to improve technical as
well as human skills.

Organizational behavior is a useful concept for manager to justify and resolve the problems.
OB affects manager’s way to think about and look at the matters and challenges from
broader prospective. Now they look at challenges as a new opportunity and tackle it
smartly. Every day managers have to face challenges because of expansion of MNEs
(Multinational enterprises), globalization, diverse work force, advancement in technologies,
competition, pressure to provide quality in product and services, making innovative
strategies, work life balance, expansion in product line and ways to increase productivity.

Q.2) Discuss the need for an ethical behavior in an organization. Also Identify and explain
the measures that can be taken by modern day organization to inculcate an ethical
behavior within the organization. (400 words, 10 Marks)
Approach

Introduction: Start with a quote on ethical behavior and briefly explain the need for an
ethical behavior in an organization

Body: Explain the measures taken to inculcate an ethical behavior within an organization.
Also take an example of a company which has excelled in ethical practices in recent years.

Conclusion: Conclude that, why ethical behavior is important within an organization.

Answer

"Ethical behavior is doing the right thing when no one else is watching - even when doing
the wrong thing is legal" - Aldo Leopold

Ethical issues in organizational behaviour are in the forms of business ethics which refers to
a set of moral principles that should play significant role in guiding the conduct of managers
and employees in the operation of any organization. These moral principles help in deciding
what is right or wrong action.

Email – hello@edutap.co.in, M - 8146207241 7|P a g e http://www.edutap.co.in

 In the contemporary society need for ethics in organizational behaviour is due to the
following reasons:
1. Moral consciousness: every individual is morally conscious. Since an organization is a
collectivity of individuals for certain specified objectives, it tends to behave ethically.
Organizations tend to feel that their long-term survival depends on ethical behaviour
and any unethical behaviour is a short-term aberration.
2. Credibility: ethical behaviour helps in building credibility of an organization. Credibility
of an organization is an essential phenomenon because through it the organization
protects its identity. Credibility of an organization depends on trustworthiness,
transparency, and honesty. For an organization, building credibility is a long-drawn
process but its tarnishing is a short one. High credibility can be maintained through
conscious ethical behaviour.
3. Social pressure: an organization is not an island in itself but is an organ of the society.
Therefore, various organs of the society put pressure on the organization to behave
ethically.
4. Legal pressure: ethical behaviour evolves from social system. Thus, ethical behaviour is
evolutionary. In this evolution process, there is a possibility that sometimes it may not
be clear whether a particular behaviour is ethical or unethical. In order to avoid this
dilemma, most of the societies enact laws which define ethical and unethical behaviour.
These legal provisions are of mandatory nature.

Today in the era of cutthroat competition, managers and employees experience a lot of
pressure to improve quality and productivity in order to obtain competitive advantages. In
such a scenario, employees are more likely to be involved in the malpractices, forgery of
documents, manipulation of rules and resorting to many other objectionable business
practices. Hence, there is a strong need to limit the managerial activities within the
periphery of social and ethical dimensions. Such activities do not affect only the
organizations but also the society and other groups outside the organization too. It is very
challenging for the managers to ensure that the every decision which they are taking
enhance organizational effectiveness is also socially as well as morally acceptable.

Measures for inculcating ethical behaviour

Various measures that an organization can undertake Intel create ethics in employees are
as follows,

1. Top Management Leads Ethics by Example: One of the most noticeable ways that
companies can demonstrate their commitment to creating an ethical organizational
culture is to ensure that top managers and leaders lead by example. Employees look
to the behaviour of top management as an example of the type of behaviour that
the company finds acceptable in the workplace.

Email – hello@edutap.co.in, M - 8146207241 8|P a g e http://www.edutap.co.in

 2. Code of conduct/ethics: various organizations formulate code of conduct/ethics to
be followed in conducting various management practices. For example, Reliance
Industries has formulated very comprehensive code of ethics for various activities
which include work ethics and personal conduct also.
3. Offer Formal Ethics Training: A formal ethics training program sends a strong
message about a company’s ethical stance. Seminars, workshops, and other ethical
training programs reinforce the organization’s standards of conduct and clarify the
types of behaviors that the company deems permissible or out of bounds.
Situational examples help to address how to handle possible ethical dilemmas.
Workshops can help employees to work on their problem-solving skills. Trainings
may include consultations from peers or mentors.
4. Whistle blowing: organizations may have effective system of whistle blowing to
curve unethical practices. In this system, organizational members are encouraged to
report upward about the unethical practices committed by any member. However,
whistle blowing may work effectively only when cultures of the organizations
support the system. In its absence, whistle blowers are likely to be punished which
may discourage them from such whistle blowing.

IBM was named one of the World’s Most Ethical Companies for the third year in a row by
the Ethisphere Institute, an organization devoted to defining and advancing the standards
of ethical business practices across the globe.

IBM has sought to earn and keep the trust of clients, partners, employees, and people in
the many thousands of communities. Their holistic approach considers the impact of IBM’s
products and operations on the environment, the sustainability of our global supply chain,
and the governance, ethics, and integrity of how we introduce emerging technologies, like
artificial intelligence (AI) to the world. And this earned trust is why 95 percent of Fortune
500 companies rely on IBM to handle their data.

This is why in the connected world of the 21st century, ethical behavior is both the right
thing to do and the best business approach. The most successful organizations always focus
on values and purpose to drive their long-term thinking and make the world a better place
for all of its stakeholders.

15 Markers
Q.1) What are the major behavioral science disciplines that contribute to organizational
behaviour? (600 words, 15 Marks)

Approach

Introduction: Briefly discuss, organizational behavior is an interdisciplinary concept.

Email – hello@edutap.co.in, M - 8146207241 9|P a g e http://www.edutap.co.in

 Body: Explain various disciplines that contribute to organizational behavior.

Conclusion: Conclude it by highlighting, Why the study of organizational behavior is

important.

Answer

Organizational behaviour is an interdisciplinary concept because the theories, models,

concepts and practices of OB have been derived from physical sciences as well as social
sciences. The main features of organizational behaviour are primarily based on behavioural
sciences. In fact, OB is also called as behavioural science.

Organizational behavior is the synthesis of many academic disciplines and theories of OB

are built upon the number of other scientific and behavioral disciplines. The major
disciplines contributing in the field of OB are psychology, sociology, political science,
anthropology, economics, science, technology and environmental sciences. Contributions of
different disciplines in OB are explained as below,

1. Psychology: Organizational behavior studies human behavior which is concerned

mainly with the psychology of the people. Psychology, especially, industrial, or
organizational psychology is the greatest contributor to the field of organizational
behavior. Psychologists study behavior and industrial or organizational psychologists
deal specifically with the behavior of people in organizational settings. Psychology as
a science, measures, explains, and suggests the appropriate human behavior.
Individual behavior is governed by perception, learning and personality. Industrial
psychology understands people’s behavior at work, particularly under different
working conditions, stress, conflicts, and other related behavior of employees. Job
satisfaction, performance appraisals and reward systems are measured and directed
with the use of psychological theories and models.
2. Sociology: Sociology refers to the study of social systems in which individuals
exercise their roles towards other human beings. Sociology has contributed in the
study of group behavior. It studies the behavior of the individuals towards their
fellow human beings. Literature of sociology has enriched the OB discipline through
the study of interpersonal relationships, group dynamics, leadership, and
communication, formation of groups, group roles and conflict management.
3. Anthropology: Anthropology is concerned with the interactions between people and
their environment, especially their cultural environment. Culture is a major influence
on the structure of organizations as well as on the behavior of people within
organizations. Aristotle defined anthropology as a science of man’s self-
understanding. It particularly studies civilization, forms of cultures and their impact

Email – hello@edutap.co.in, M - 8146207241 10 | P a g e http://www.edutap.co.in

 on individuals and groups, biological features of man and evolutionary pattern,
speech, and relationship among languages.

Anthropology contributes in understanding the cultural effects on organizational

behavior, effects of value systems, norms, sentiments, cohesion and interaction.
Socialization involves spreading of values and missions of organization among
employees. Anthropology influences the employees’ behavior through motivation,
interaction, goal setting, decision making, coordinating and controlling.

4. Political Science: In recent times, political science has also started interesting the
organizational behaviorists. Political Science is usually, thought of as the study of
political systems. But political scientists are interested in how and why people
acquire power, political behavior, decision making, conflict, the behavior of interest
groups and coalition formation. These are also major areas of interest in
organizational behavior.
5. Economics: Economists study the production, distribution and consumption of goods
and services. Students of organizational behavior share the economist’s interest in
such areas as labor market dynamics, productivity, human resource planning and
forecasting, and cost benefit analysis.
6. Science: Science is systematized knowledge. The scientific methods attempt to
produce information that is objective in the sense that it is certifiable and
independent of a person’s opinions or preferences. Scientific method is the
backbone of organizational behavior. Organizational behavior is based on the
systematized study of facts, behavior, their relationships, and predictions.
7. Technology: The level of technological development affects the behavior of the
employees. Modern age is the age of computerization. It has come within the
framework of the model of organizational behavior. The study of technological
development is becoming essential for understanding the organizational behavior,
because people are influenced by the technological development. Human behavior
relations and environments develop as a result of technological innovations.
8. Engineering: Engineering also influences the study of organizational behavior. Some
topics are common to engineering as well as organizational behavior e.g., work
measurement, productivity measurement, workflow analysis, work design, job
design and labor relations. In fact, organizational behavior is dependent on
engineering for these technical jobs.

The study of organizational behavior is one of the most important elements in the
management. Organizational behavior aims at helping managers and supervisors in
different ways. It plays an important role in all facets of managing an organization.

The theory of OB advocates that researchers, managers, psychologists and social scientists
must understand the impact of an individual’s personal characteristics, his cultural

Email – hello@edutap.co.in, M - 8146207241 11 | P a g e http://www.edutap.co.in

 background, education, social groups and other situational factors on his behavior.
Managers who are leading a team must be able to understand, explain and modify the
behavior of employees working under their supervision.

The basic concepts of OB such as value system, emotional intelligence, job design,
organizational culture and work environment are the important factors that help in
explaining and modifying the human behavior. Therefore, it becomes very important for the
managers to use the theories and models postulated by OB to understand, predict and
control the behavior of employees.

Q.2) What do you mean by organizational behaviour models? What are the three levels of
analysis in OB model? Also Discuss the various models of organizational behaviour? (600
words, 15 Marks)
Approach

Introduction: Define organizational model.

Body: Discuss the levels of analysis associated with OB, and also explain the various models
of organizational behavior with examples.

Conclusion: Conclude with by stating, all models are equally important, and they will be used
depending on different situations.

Answer

A model is an abstraction of reality, a simplified representation of some real-world

phenomenon. Models are developed to guide activities in those fields. In the field of
organizational behavior models are developed to provide framework about how people will
be treated in an organization.

Proper understanding of organizational behaviour can result in many positive effects on the
organization and its employees. It also studies how people behave in and around the
workplace, which will be the organization. However, when we talk about the scope of
organizational behaviour, it extends to only 3 major concepts:

1. Analysis at Individual Level: As the name itself suggests, this is where an individual is
studied from personality, motivation, interests, to attitudes of an individual who is a part of
an organization. Various interaction sessions and one-to-one are conducted to understand
and study the individual and make a perception about them. For example, a company may
hire employees based on their personality or how they answer behavioral based interview

Email – hello@edutap.co.in, M - 8146207241 12 | P a g e http://www.edutap.co.in

 questions. At the same time, companies can help influence individual behavior. They do this
by creating a code of conduct, establishing policy and procedure guidelines, and by
developing incentives and consequences.

2. Analysis at Group Level: Now, the inter-individual concept is when there is

communication happening among the employees. Inter-individual represents persons with
their social group in the workplace, their subordinates, or their senior employees. It helps
understand the leadership styles and leadership qualities of a person; if a conflict arises, it
can be resolved easily, group dynamics. For example, Individuals can affect a group and a
group can affect an organization. And at the same time, a group can affect individuals and
an organization can affect a group. Imagine organizational behavior as a large spider web
over each organization. The spider web connects each level of influence with the two
others, creating a pathway between each one.

3. Analysis at Organization Level: Here the study of the formation of an organization is

done. The areas looked into can be the structure of the organization, effectiveness in the
organization, etc. The efforts made by a group to achieve the objectives or goals of an
organization are what group behaviour is all about. The behaviour of everyone who is a part
of the group is taken into consideration.

Types of Organizational Model

The five models of organizational behavior are,

Autocratic model: Autocratic model is the model that depends upon strength, power, and
formal authority. In an autocratic organization, the people (management/owners) who
manage the tasks in an organization have formal authority for controlling the employees
who work under them. These lower-level employees have little control over the work
function. Their ideas and innovations are not generally welcomed, as the key decisions are
made at the top management level. Though this model is not much in use in the
contemporary business environment, its use is appropriate when,
I. Urgent action is required,
II. Employees are unskilled, inexperienced and submissive, and
III. Employees have strong lower order needs to satisfy
Example: Elon Musk is one of the most influential CEOs and entrepreneurs in the world
today. Having exercised an autocratic leadership style at each of his various enterprises,
including car manufacturer Tesla and space exploration agency SpaceX, he has regularly
overseen prosperity and success. Aside from his strong personality and innovative genius,
Musk is ambitiously insistent, setting exceptionally high standards for his hires. This
includes intense scrutiny of the products that they create, even if it means changing his
mind and discarding an idea after months of effort and in-depth planning.

Email – hello@edutap.co.in, M - 8146207241 13 | P a g e http://www.edutap.co.in

 Custodian model:
To overcome the shortcomings of the Autocratic model, the custodial model came into
existence. The insecurity and frustration felt by the workers under the autocratic model
sometimes led to aggression towards the boss and their families. To dispel this feeling of
insecurity and frustration, the need was felt to develop a model which will improve the
employer-employee relations. The custodial model was used by the progressive managers.
The custodial model is based around the concept of providing economic security for
employees through wages and other benefits that will create employee loyalty and
motivation. In some countries, many professional companies provide health benefits,
corporate cars, financial packaging of salary, and so on – these are incentives designed to
attract and retain quality staff.
Example: Coca cola following this model provide security and benefits to employees.
Employee feels with reasonable contentment. And because of this entire employee’s
performance result is passive cooperation. As company take care of their employees, gives
benefits to motivate them and as a result of these employee’s psychological result also
comes in the favor of the company i.e. employee’s dependence on organization.

Supportive model
Unlike the two earlier approaches, the supportive model is focused on aspiring leadership.
It is not based upon control and authority (the autocratic model) or upon incentives (the
custodial model), but instead tries to motivate staff through the manager-employee
relationship and how employees are treated on a day-to-day basis.
Managers adopt relationship-oriented organization behavior and allow employees to
participate in the decision-making process. Communication is two-way and a healthy work
climate is ensured which takes care of the human side of the organization.
This model is appropriate when,
I. Workers’ higher-order needs are predominant,
II. They are self-motivated to work, and
III. Managers have trust and confidence in the employees.
Example: Warren Buffett is known for great success, surrounding himself with people he
trusts. He uses this model to make sure the people he works with can do their jobs
efficiently so he doesn’t have to worry about it, only intervening when it’s absolutely
necessary. In the Berkshire Hathaway’s 2010 Annual Report, Buffett said, “We tend to let
our many subsidiaries operate on their own, without our supervising and monitoring them
to any degree. Most managers use the independence we grant them magnificently, by
maintaining an owner-oriented attitude.

Collegial model:
The collegial model is based around teamwork – everybody working as colleagues. The
overall environment and corporate culture need to be aligned to this model, where
everybody is actively participating – is not about status and job titles – everybody is
encouraged to work together to build a better organization.

Email – hello@edutap.co.in, M - 8146207241 14 | P a g e http://www.edutap.co.in

 In this kind of collegial environment, the workers have job satisfaction, job involvement, job
commitment and some degree of fulfillment.
Example: As one of the world’s leading food and beverage companies, PepsiCo is also
leading the way toward a more inclusive, diverse workspace. For decades, they have been
committed to hiring capable people of all races, religions, genders, orientations, and
backgrounds. A study revealed that when an organization culture is inclusive, employees
are 68% more likely to take time to get to know colleagues personally, and when coworkers
get to know each other personally, they feel more inspired to work toward their team’s
success.

System model:
This is the most contemporary model of the five models discussed above. In the system
model, the organization looks at the overall structure and team environment, and considers
that individuals have different goals, talents and potential. The intent of the system model
is to try and balance the goals of the individual with the goals of the organization. Under
this model, people work to satisfy their self-actualization needs.
For example: While Google is dedicated to growing company revenues and numbers, it also
takes employee growth and feedback seriously. There are several opportunities where
Googlers are allowed to take up roles in different teams to brush up their skills or gain
diverse experiences. This prevents employees from getting complacent which eventually
leads to a positive mindset and personal growth. Employee happiness and fulfilment of
their self-actualization need helps build a constructive work environment which helps the
company grow in turn and deliver fantastic results.

On analyzing these models, it cannot be generalized whether one model is better than the
other or any model is the best. These models are based on assumptions about people and
how they react to different situations. Primarily, these models depend upon need hierarchy
of the individuals. As one moves up the hierarchy, there is a shift in the model from
autocratic to systems model.

Previous Year Questions – 2021 Onwards

Please be informed that in this section we will be discussing all the descriptive Previous Year
Questions (PYQs), all the questions appearing in this section has a tag of the year in which
that question was asked. If there is no question in this document on any exam from a
particular year or years, it means that no question was asked for that exam in that
year(s) or exam itself was not conducted in that year.

There was no question asked from Fundamentals of Organisational behavior in 2021 and
2022

Email – hello@edutap.co.in, M - 8146207241 15 | P a g e http://www.edutap.co.in

 Previous Year Questions – 2007- 2014
There was no question asked from Fundamentals of Organisational behavior between 2007
to 2014

Homework Question
Q1) What is globalization? How do organizations respond to globalization? (400 words, 10
Marks)

Email – hello@edutap.co.in, M - 8146207241 16 | P a g e http://www.edutap.co.in

Email – hello@edutap.co.in, M - 8146207241 1|P a g e http://www.edutap.co.in
Email – hello@edutap.co.in, M - 8146207241 2|P a g e http://www.edutap.co.in
 Introduction
This document consists of 4 sections

1) 10 Marker Questions: In this part we shall be giving you 10 marker questions. These
are supposed to be somewhat direct and easy as compared to 15 marker questions

2) 15 Marker Questions: In this part we shall be giving you 15 marker questions. These
are supposed to be little complex or consisting of multiple sub questions or may be
an integrated question from concepts of different chapters

3) Previous Year Descriptive Questions: The previous year descriptive questions are
subdivided into two sections
a. 2021 Onwards: We shall cover all previous year questions asked in the exam
from 2021 onwards
b. 2007-2014: We shall cover all relevant previous year questions asked in the exam
between 2007-2014
I. Some questions from previous years might not be covered in any of the
chapter since they might not belong to current syllabus. The syllabus
earlier was different from the current syllabus.
II. Some questions from previous years might not be covered as they are
related to current affairs of that year which is not relevant now.
III. Moreover, some chapters have lot of previous year questions, in those
chapters we have given complete answers to some questions and for the
rest of the questions, the answer outline is given
c. The exam was conducted in objective pattern between 2015 and 2020. For
these years no subjective questions is there

4) Homework Question: There is one homework question for you to think and write.
The answer for this question will not be given by us.

Email – hello@edutap.co.in, M - 8146207241 3|P a g e http://www.edutap.co.in

 Other Guidelines

1. The answers given here are not to be crammed. They are not given from the
perspective of being perfect answers. No answer is a prefect answer. If we ask
500 people to write answers to these questions, then we will get 500 different
answers and we cannot decide which one is perfect answer. The answers given
here is to help you guide towards the approach to answer writing

2. The answers written here may exceed the word limit in some cases. But that is
done intentionally, so that you understand it better and in exam you can further
summarize that information to achieve the desired word-limit.

3. In certain answers, the content/points written may not be covered in the

notes/videos. But that is also done to make you realize that we cannot simply be
bookish in writing answers, rather some content/points need to be written from
our understanding of things. This is called the application part

4. We would recommend that questions to the answers should not be just read.
What you shall do is
a. For 2-3 questions, please write answer in your own words so that you get
practice for descriptive writing. Then try to match your answer with
answer given by us and try to self-evaluate
b. For the rest of the questions, try to make an outline as in what you will
write in this answer. Then try to match your outline with answer given by
us and try to self-evaluate

Please refer the videos on “Science and Art of Descriptive Writing” that have been
included earlier in the course. Those videos shall be watched again and again to get
better hold on answer writing

Email – hello@edutap.co.in, M - 8146207241 4|P a g e http://www.edutap.co.in

 10 Marker
Q.1) What is personality? What are the factors that affect personality??

Structure
Approach

Introduction: Start with defining personality.

Body: Discuss the factors affecting the personality.

Conclusion: Conclude on a positive note highlighting the importance of personality.

Answer:
Personality is a pattern of unique characteristics and relatively enduring traits which give
individuality and consistency to individual’s behavior.

For example, Dhirubhai Ambani had traits of proactivity, Risk Taking ability, Openness,
Conscientiousness, Timeliness, and determination which made him a great businessman.

Personality is used in terms of influencing others through external appearance, but mere
external appearance does not make the whole personality, According to Ruch, personality
should include
1) External appearance
2) Inner awareness of self
3) Measurable traits with respect to inner and outer character

As personality is developed within the social framework, as such, many factors contribute to
its development. For an easy understanding, the factors that affect personality are classified
into the following groups:

1) Biological Factors
The biological factors are biogenic by nature and include those of heredity, brain, and
physical features. It focuses on why or how personality traits manifest through biology
and investigate the links between personality, DNA, and processes in the brain.
For example, Multiple twin studies have found that identical twins do have higher
correlations in personality traits than fraternal twins.

Email – hello@edutap.co.in, M - 8146207241 5|P a g e http://www.edutap.co.in

 2) Family and Social Factors
Family and social group’s impact personality development through socialization and
identification processes. Socialization is a process by which an individual acquires a wide
range of behaviours from society. Socialization starts with the initial contact between the
mother and her new infant. Later on, other members of the family and social groups
influence the socialization process. Identification process occurs when a person tries to
identify himself with some person whom he feels ideal in the family. Generally, a child in
the family tries to behave like his father or mother. For example, according to research
by Belsky & Pasco Fearon, (2008) - Infants become securely attached when their parents
respond sensitively to them, reinforcing the infants’ confidence that their parents will
provide support when needed. Infants become insecurely attached when care is
inconsistent or neglectful; these infants tend to respond avoidantly, hesitantly, or in a
disorganized manner.
3) Cultural Factors
Some people regard personality and culture as two sides of the same coin. Each culture
produces its special type or types of personality. Gordon Allport considered culture to
have an important influence on traits. These traits may vary from culture to culture based
on differing values, needs, and beliefs. Positive and negative traits can be determined by
cultural expectations: what is considered a positive trait in one culture may be considered
negative in another, thus resulting in different expressions of personality across cultures.
For Example, Narayana Murthy touches Ratan Tata’s feet at TiEcon Mumbai. The gesture
by the Infosys founder is influenced by Indian Culture where touching the feet of elders
is very common and is also reflected in his personality.
4) Situational Factors
Situational Factors (also known as External Factors) are influences that do not occur from
within the individual but from elsewhere like the environment and others around you.
For example, a worker whose personality history suggests that he had need for power
and achievement, may become frustrated and react apathetically and aggressively if he
is put in a bureaucratized work situation.

Personality is a representation of who one truly is their characters, shortcomings, traits and
therefore makes people unique. As aforementioned, this is usually shaped by a number of
factors that include cultural, parental influences, family and Biology. It is, therefore,
important for families and the general society to ensure that children are brought up in
positive environments that will enhance and nurture their personalities for future.

Email – hello@edutap.co.in, M - 8146207241 6|P a g e http://www.edutap.co.in

 Q.2) What is perception? What is the importance of perception in an organization?

Structure
Approach

Introduction: Start with defining the perception.

Body: Discuss the importance of perception in an organization

Conclusion: Conclude on a positive note highlighting the importance of understanding the

perception.
Answer:
Perception is an intellectual process of transforming sensory stimuli to meaningful
information. Perception is the process through which an individual organizes and interprets
his sensory impressions to give meaning to his environment.

There are two types of perception based on type of stimuli processed:

1. Internal Perception: It tells us what is going on in our bodies. We can sense whether we
are hungry tired, or similar such phenomena

2. External Perception: It tells us about the environment beyond our bodies. By using our
senses of sight, bearing, touching etc., we perceive our environment.

Perception affects the outcome of behavior. This is so because people act based on what they
see. For example, sometimes we may want to do something, because we perceive it as
beneficial. If we mis-perceive or don't perceive it as beneficial, we won't be motivated to do
it. Managers must recognize the fact that if people do not perceive something as meaningful
if it will not influence their behavior. Hence, Perception plays an important role in the
organization in the following ways:

1) Interpersonal Working Relationship

If the members of the organization do not have similar or at least compatible perceptions,
the problems of the organization are greater and will require efforts to make perceptions
more compatible. Misperceptions usually lead to strained relations and may even result in
open conflict among people. Example: Difference in perception regarding the future of
companies under the TATA group, rivalry between Cyprus Mistry and Rata Tata reached even
the doors of Supreme Court and ultimately resulted in one removing the other.

Email – hello@edutap.co.in, M - 8146207241 7|P a g e http://www.edutap.co.in

 2. Selection of Employees:
In many instances, and managers are subject to many of the perceptual problems when they
make the selection decisions. There may be strong tendencies towards logical error and
stereotyping specially during initial interviews. For Example, If the first impressions is
negative, it tends to be more heavily weighted in the interview than if that same information
comes out later. Most interviewers’ decisions change very little after the first 4 or 5 minutes
of an interview.

3. Performance Appraisal:
The appraisal of a subordinate's performance is highly affected by the accuracy of a
manager's perceptions. Managers may have tendencies to positively evaluate some
employees because they are better liked, or are on favored tasks, or are particularly
noticeable

4. Performance Management:
People attempt to validate their perceptions of reality even when these are faulty. The terms
self-fulfilling prophecy and Pygmalion effect describe how an individual’s behavior is
determined by others’ expectations. For Example: If a manager expects big things from her
people, they’re not likely to let her down.

The Pygmalion effect, or Rosenthal effect, is a psychological phenomenon wherein high

expectations lead to improved performance in a given area.

Self-fulfilling prophecy, process through which an originally false expectation leads to its own
confirmation.

5. Delegation of Authority:
Many a times authority is delegated based on perceptions. If these perceptions are wrong,
then it can lead to wrong delegation of authority.

People’s behavior is based on their perceptions of what reality is, not on reality itself. Thus,
for understanding human behavior, it is very important to understand their perception.

Email – hello@edutap.co.in, M - 8146207241 8|P a g e http://www.edutap.co.in

 15 Marker
Q.1) Discuss the Big five model of personality?

Structure
Approach

Introduction: Start with Personality in terms of traits.

Body: Discuss the big five model of personality.

Conclusion: Conclude on a positive note highlighting the importance of Big five model with a
quote on personality.
Answer:
Personality is the combination of traits or qualities that forms a person's unique identity. It
signifies the role which a person plays in public.

In recent times, researchers have identified five fundamental traits that are especially
relevant to an organization. These five traits make up the Big five personality model and are
as following:

1) Openness –
Openness in the context of the Big Five refers more specifically to Openness to
Experience, or openness to considering new ideas. People who like to learn new things
and enjoy new experiences usually score high in openness. Openness includes traits like
being insightful and imaginative and having a wide variety of interests.
Example: Mr. Azim Premji, an Indian Business tycoon, has always been open for new
experiences. From dropping out from Stanford at the age of 21 to starting a vegetable oil
production and further expanding the production line towards hydraulic cylinders, Soaps
and lighting products shows his openness to new ideas and experiences, and this
openness ultimately resulted in the formation of India’s one of the biggest Information
Technology company Wipro Ltd.
2) Conscientiousness –
Conscientiousness describes a person's level of goal orientation and persistence. People
that have a high degree of conscientiousness are reliable and prompt. Traits include being
organized, methodic, and thorough.

Email – hello@edutap.co.in, M - 8146207241 9|P a g e http://www.edutap.co.in

 Example: The high degree of conscientiousness of Mark has leaded him to the way of
success, he is a hardworking, and always willing to put in extra time and effort to
accomplish goal to achieve success. His willingness to put in extra time to complete
something, such as he uses eight hours to create the Facemash site. So, we can see that
when he got an objective that need to be achieved, he will show his high
conscientiousness to work on that aim in order to achieve success
3) Extraversion –
Extraversion describes a person’s inclination to seek stimulation from the outside world,
especially in the form of attention from other people. Extroverts get their energy from
interacting with others, while introverts get their energy from within themselves.
Extraverts engage actively with others to earn friendship, admiration, power, status,
excitement, and romance. Introverts, on the other hand, conserve their energy, and do
not work as hard to earn these social rewards. Extraversion includes the traits of being
energetic, talkative, and assertive. Example: Keen observation has shown that Elon Musk
is not afraid of public platforms, you can often see him on stages making unveils of new
products, charity speaking, connecting with customers, asking for reviews and opinions,
and considering their feedback shows that he is high on Extraversion.
4) Agreeableness –
Agreeableness describes the extent to which a person prioritizes the needs of others over
their own needs. People who are high in Agreeableness experience a great deal of
empathy and tend to get pleasure out of serving and taking care of others. Thes e
individuals are friendly, cooperative, and compassionate. Traits include being kind,
affectionate, and sympathetic. People with low agreeableness may be more distant.
Example: Ratan Tata has always been known for his empathy not only for his employees
but also to the society at large. From Donating 1500 crore during COVID to taking care of
families of employees who suffered during the Taj terrorist attack, Rata tata has always
been known as a person who gets pleasure out of serving and taking care of others.
5) Neuroticism –
Neuroticism describes a person's tendency to respond to stressors with negative
emotions, including fear, sadness, anxiety, guilt, and shame. Neuroticism is also
sometimes called Emotional Stability. This dimension relates to one’s emotional stability
and degree of negative emotions. People that score high on neuroticism often experience
emotional instability and negative emotions. Traits include being moody and tense.
Example: If there is one daunting trait that Musk has taken is that of neuroticism. He is a
bit harsh with employees. There have been many reports that he often lashes out at
employees if they are not following his guidelines. One of his employee Seth (2015) states

Email – hello@edutap.co.in, M - 8146207241 10 | P a g e http://www.edutap.co.in

 that he often demands seemingly impossible things and publicly chews out at employees
who fall short of his goals.

Personality is to a man what perfume is to a flower. Personality has key influence on work
performance and the Big Five model of personality can play a really important role in modern-
day organizations.

Q.2) Discuss the implications of Big five model of personality in an organization?

Structure
Approach

Introduction: Start with defining the Big five model of personality.

Body: Discuss the implications of Big five model of personality in an organization.

Conclusion: Conclude on a positive note highlighting the wide spread usage of model.

Answer:
The Big Five (also called Five Factor) model of personality is the most widely accepted
personality theory in the scientific community. The Big Five is so named because the model
proposes that human personality can be measured along five major dimensions, each of
which is distinct and independent from the others.

In the Big Five model, people are understood to have varying levels of key personality factors
which drive our thoughts and behavior. Although personality traits cannot specifically predict
behavior, differences in the Big Five factors help us to understand why people may react
differently, behave differently, and see things differently from others in the same situation.

Personality tests that are based on this model measure where an individual lies on the
spectrum of each of the five traits and thus the model has the following implications in an
organization:

1) Filling the Important position

The Big Five personality model gives more insight into how someone reacts in different
situations, which can help you choose an occupation. Career professionals and psychologists
use this information in a personality career test for recruitment and candidate assessment.

Email – hello@edutap.co.in, M - 8146207241 11 | P a g e http://www.edutap.co.in

 Example: Reliance industries Limited looks for people who have capacities for
entrepreneurship, risk taking and will win

2) Improve the Employee- Employer Relation

The Big Five personality model predicts a person’s workplace social behavior and
performance. Having a deeper understanding of these behaviors can help coworkers and
managers create trust, better relate to one another, and cultivate a stronger workplace
culture.

3) Leads to Leadership effectiveness

Leaders who understand how individuals’ personalities differ can use this understanding to
improve their leadership effectiveness and employees’ job performance. Leaders can also
use the Big Five on themselves to assess their behaviors and demonstrate to employees how
to not only maximize their strengths but also learn from their weaknesses. Example: Person
high on Extraversion have the traits of friendship, admiration, power, status, thoughtful,
shows better interpersonal skills and create social acceptance and it results in effective
leadership as a behavioral outcome.

4) Improve Efficiency and Effectiveness

When an employee’s personality doesn't fit his role, everyone loses. An employee will likely
be unhappy because he feels that he doesn’t "fit in," while the organization face increased
absenteeism, high team turnover, low productivity, and loss of investment in training if the
employee chooses to leave. Hence, the Big Five model can help in choosing the right person
for the right job and can ultimately lead to increased efficiency and effectiveness of
employees as well as the organization.

5) Designing Motivation System

All specific people cannot be motivated by offering the same incentives because of their
personality differences. Some people may be motivated by offering financial incentives, some
people may not react so favorably to such offers. For example, people with external locus of
control might be happy with financial incentives whereas people with internal locus of control
might need achievement and recognition and hence Big five model can help in designing the
motivation system for an organization by making managers understand the personality of
employees.

6) Designing Control System

In order to ensure people, contribute to the organization in desired way, a control system is
developed. Such a system may be in the form of tight control or may provide flexibility. Based
on personality, different people react differently to a particular type of control system.

Email – hello@edutap.co.in, M - 8146207241 12 | P a g e http://www.edutap.co.in

 Hence, Big five model can help in designing the control system for an organization by making
managers understand the personality of employees.

Today, the Big Five model is the basis of most modern personality research, and as such has
been used to illuminate everything from how much of our personality is inherited to which
personality factors correlate with income and work performance. Due to this, Big five model
of personality has widespread application in modern day organizations.

Q.3) What are the perceptual distortions do people frequently came across while making
judgments about others??

Structure
Approach

Introduction: Start with defining the perceptual distortions.

Body: Discuss the different perceptual distortion with which the people came across while
judging others.

Conclusion: Conclude on a cautious note highlighting the importance of understanding the

perceptual error.
Answer:
Perceptual distortions are incorrect understanding or abnormal interpretation of a
perceptual experience. They are also termed as perceptual error.

A perceptual error is the inability to judge humans, things, or situations fairly and accurately.
Examples could include such things as bias, prejudice, stereotyping, which have always
caused human beings to err in different aspects of their lives.

A perceptual error has a strong impact on an organization, and it hampers proper decision-
making skills while hiring, performance appraisal, review, feedback, etc.

There are many types of perceptual errors in the workplace

1.Selective Perception-
People generally interpret according to their basis of interests, ideas, and backgrounds. It is
the tendency not to notice and forget the stimuli that cause emotional discomfort.

Email – hello@edutap.co.in, M - 8146207241 13 | P a g e http://www.edutap.co.in

 For example, we might think that fresher graduates with above 80 % marks will exceptionally
do well in technical interviews of respective subjects.

2.Halo Effect-
We misjudge people by concentrating on one single behavior or trait. It has a deep impact
and gives inaccurate results most of the time. Halo effect is more reflected in performance
appraisal and selection interview where the distortion exists because the rater is influenced
by ratee's one or two outstanding good (or bad) performances, and he evaluates the entire
performance accordingly. For example, a sharply dressed coworker might be judged to be
more competent than a coworker wearing a t-shirt.

3.Stereotypes-
We always have a tendency to classify people to a general groups/ category in order to
simplify the matter.

For example, Women are always good homemakers and can do well in work-life balance

4.Contrast Effect-
We again sometimes judge people in comparison to others. This example is generally found
in sports, academics, and performance reviews.

For example, Natarajan Chandrasekaran the current Chairman of TATA Group is compared
with the old Chairman Ratan Tata.

5.Projection-
This is very common among Perceptual errors. Projection of one's own attitude, personality
or behavior into some other person. For example- To all perfectionists, everybody has to be
a perfectionist.

6.Impression-
We all know the term "first impression is the last impression" and we apply that too. For
example- A manager may rate an employee higher each year if he was really good during the
first 3 months

7. Perceptual Set:
It is also known as a mental set, which means previously held beliefs. For example, a manager
may have formed the perception that workers are lazy, and they want to gain whatever is
possible from the organization. This mental set will influence his perception when he meets
workers.

8. Implicit Personality:

Email – hello@edutap.co.in, M - 8146207241 14 | P a g e http://www.edutap.co.in

 Implicit personality theory describes the specific patterns and biases an individual use when
forming impressions based on a limited amount of initial information about an unfamiliar
person. For example, if a person is honest then he is thought to be hardworking too. Thus,
all hard-working people are perceived to be honest. This may not be true in many cases and
perception is distorted.

9. Expectancy:
An expectancy effect, also known as self-fulfilling prophecy, occurs when an incorrect belief
held by one person, the perceiver, about another person, the target, leads the perceiver to
act in such a manner as to elicit the expected behavior from the target. For example, if Mary
is told that a new coworker, John, was unfriendly, she may act in a more reserved manner
around him, refrain from initiating conversations with him, and not include him in activities.
John might then respond to Mary’s standoffish behavior by similarly not initiating
conversations or activities with her, thus confirming her expectancy that he is unfriendly

To fully utilise the resources at hand and promote a culture of growth and innovation,
Organizations need to be fully aware of their perceptual errors. All the issues discussed above
can and are having severe impacts on the organisation ranging from being selectively wrong
to wrongly attributing performing employees. All the factors might lead to restraining
organisational growth.

Previous Year Questions – 2021 Onwards

Please be informed that in this section we will be discussing all the descriptive Previous Year
Questions (PYQs), all the questions appearing in this section has a tag of the year in which
that question was asked. If there is no question in this document on any exam from a
particular year or years, it means that no question was asked for that exam in that year(s)
or exam itself was not conducted in that year.

There was no question asked from personality and perception in 2021 and 2022

Previous Year Questions – 2007- 2014

There was no question asked from personality and perception from 2007 to 2014

Email – hello@edutap.co.in, M - 8146207241 15 | P a g e http://www.edutap.co.in

 Homework Question
Q.1) What can be done to help people have better perception?
This questions for you to work up on by yourself. We shall not be providing any structure
for it

Email – hello@edutap.co.in, M - 8146207241 16 | P a g e http://www.edutap.co.in

Email – hello@edutap.co.in, M - 8146207241 1|P a g e http://www.edutap.co.in
Email – hello@edutap.co.in, M - 8146207241 2|P a g e http://www.edutap.co.in
 Introduction
This document consists of 4 sections

1) 10 Marker Questions: In this part we shall be giving you 10 marker questions.

These are supposed to be somewhat direct and easy as compared to 15 marker
questions

2) 15 Marker Questions: In this part we shall be giving you 15 marker questions.

These are supposed to be little complex or consisting of multiple sub questions or
may be an integrated question from concepts of different chapters

3) Previous Year Descriptive Questions: The previous year descriptive questions are
subdivided into two sections
a. 2021 Onwards: We shall cover all previous year questions asked in the exam
from 2021 onwards
b. 2007-2014: We shall cover all relevant previous year questions asked in the
exam between 2007-2014
I. Some questions from previous years might not be covered in any of the
chapter since they might not belong to current syllabus. The syllabus
earlier was different from the current syllabus.
II. Some questions from previous years might not be covered as they are
related to current affairs of that year which is not relevant now.
III. Moreover, some chapters have lot of previous year questions, in those
chapters we have given complete answers to some questions and for the
rest of the questions, the answer outline is given
c. The exam was conducted in objective pattern between 2015 and 2020. For
these years no subjective questions is there

4) Homework Question: There is one homework question for you to think and write.
The answer for this question will not be given by us.

Email – hello@edutap.co.in, M - 8146207241 3|P a g e http://www.edutap.co.in

 Other Guidelines

1. The answers given here are not to be crammed. They are not given from the
perspective of being perfect answers. No answer is a prefect answer. If we ask
500 people to write answers to these questions, then we will get 500 different
answers and we cannot decide which one is perfect answer. The answers given
here is to help you guide towards the approach to answer writing

2. The answers written here may exceed the word limit in some cases. But that is
done intentionally, so that you understand it better and in exam you can
further summarize that information to achieve the desired word-limit.

3. In certain answers, the content/points written may not be covered in the

notes/videos. But that is also done to make you realize that we cannot simply
be bookish in writing answers, rather some content/points need to be written
from our understanding of things. This is called the application part

4. We would recommend that questions to the answers should not be just read.
What you shall do is
a. For 2-3 questions, please write answer in your own words so that you get
practice for descriptive writing. Then try to match your answer with
answer given by us and try to self-evaluate
b. For the rest of the questions, try to make an outline as in what you will
write in this answer. Then try to match your outline with answer given by
us and try to self-evaluate

5. Please refer the videos on “Science and Art of Descriptive Writing” that have
been included earlier in the course. Those videos shall be watched again and
again to get better hold on answer writing

Email – hello@edutap.co.in, M - 8146207241 4|P a g e http://www.edutap.co.in

 10 Markers

Q.1) What do you understand by Emotional Intelligence (EI)? How it differs from Mental
Intelligence (MI)? (400 words, 10 Marks)
Approach

Introduction: Start with an example of Emotional Intelligence and defining the EI as per
some standard author.

Body: Discuss the point of difference between EI and MI

Conclusion: Give a balanced conclusion highlighting the importance of both EI and MI.

Answer

Mohandas Karamchand Gandhi was a leader whose words touched cords with millions of
Indians. He was highly empathetic. Gandhiji was a man who had also displayed self-
regulation through his principles of Satya of Ahimsa which he followed throughout the life
and also encourages the others to do the same. He had the ability to perceive, control, and
evaluate emotions not only of his own but also of his followers and therefor considered
as a leader with high emotional intelligence.

According to Daniel Goleman, Emotional Intelligence refers to emotional awareness and

emotional management skills which provide the ability to balance emotions and reasons to
maximize long-term happiness. Emotional Intelligence includes components like self-
awareness, ability to manage moods, motivation, empathy, and social skills such as
cooperation and leadership.

What's more important in determining life success—book smarts or street smarts? The
answer to the question lies in understanding the difference between emotional intelligence
and mental intelligence.

1. Emotional intelligence is the ability to identify, assess, and control the emotions of
oneself, of others, and groups whereas mental intelligence is the ability to learn,
understand and apply information to skills, logical reasoning, word comprehension,
math skills, abstract and spatial thinking, filter irrelevant information.

Email – hello@edutap.co.in, M - 8146207241 5|P a g e http://www.edutap.co.in

 2. EI helps in understanding the emotions whereas MI helps in understanding the
information. For E.g. Cricketer Harbhajan Singh slapping S. Sreesanth in an IPL
match shows low EI on part of Harbhajan Singh as he failed to manage his emotions
whereas both the players are the world-class sportsman i.e. high mental intelligence
if we track their cricket records. Had Harbhajan understood his emotions and
managed them he didn’t had to face the embarrassment caused by the media.

3. Mental Intelligence is determined mostly by the structure of one’s brain and EI is

determined mostly by the mental status of an individual and thus a psychological
phenomenon. Example: After studying 60 IAS officers (High mental intelligence) of
Assam Cadre, it was found that 77 % of them fall in the category of Average EI. Only
15 % showed High EI. IAS officers are generally referred to as a person with very High
MI as they become IAS after clearing India’s toughest exam, but the above study
shows the variation in IQ and proves that Emotional Intelligence is a psychological
phenomenon.

From the above examples, we can see a sharp contrast between the two, but both EQ and
IQ are not mutually exclusive. As per Joshua Freedman- “There is a component that children
are born with, but there’s a large component that’s learned. There’s an intersection
between nature (IQ) and nurture (EQ)”. Hence both EQ and IQ are important as one gets
you through life and other gets you through school.

Q.2) How Emotional Intelligence leads to Leadership effectiveness? (400 words, 10 Marks)
Approach

Introduction: Define an effective leader.

Body: Discuss how emotional intelligence helps a leader being effective with examples.

Conclusion: Conclude that EI leads to leadership effectiveness and give a finishing touch
with some quote.

Answer

An effective leader is a person with a passion for a cause that is larger than they are. The
effectiveness of a leader is measured by their ability to mobilize their followers towards a

Email – hello@edutap.co.in, M - 8146207241 6|P a g e http://www.edutap.co.in

 common goal and vision, inspire them, stand tall in tough times, and understand the needs
and emotions of followers. Effective Leaders affect the attitude of subordinates.

Emotional intelligence helps a leader being effective in following ways:

1) Ability to Regulate Emotions: It is used to describe a person's ability to effectively

manage and respond to an emotional experience.
In order to be effective, people unconsciously use emotion regulation strategies to cope
with difficult situations many times throughout their life. Example: Mahatma Gandhi held
on to his principles of Satya or Ahimsa throughout his life no matter what the
circumstances were and guided the people by these two principles in the freedom
struggle and today is known as Father of Nation which shows that he was an effective
leader.

2) Ability to analyze emotions: It is the ability to analyze emotion and recognize the
relation between the emotions of the self and others.
In order to be effective, a leader must be able to identify the emotion of his follower so that
he can relate with them and build a relationship based on trust, understanding and positive
attitude. Example: After claims of a higher-than-average injury rate at Tesla’s Fremont
factory, CEO Elon Musk urged workers to report all injuries with no exception, adding he
would personally visit the factory floor and perform the same tasks as injured Tesla staff.
He personally wrote emails to workers that how much he cares about their safety and
wellbeing which not only resulted in reduced number of accidents but also enhanced the
trust, understanding and positive attitude of workers towards the management.

3) Emotional facilitation of thinking: It is the ability to direct one’s emotions so that they
become facilitators in getting the job done.
In order to be an effective, leader must be able to use his emotions which facilitate thinking
in his followers/subordinate and use them to mobilize towards common goal. Example:
Ratan Tata’s emotion to provide the common man with a budget car came to reality in the
form of TATA Nano thanks to his ability to channelize his emotions in getting the job done.
Ratan Tata facilitated a thinking within the group to serve the common man which made
the engineers worked day and night and made it possible to provide the common man with
a car within one Lakh.

4) Ability to express emotions: Ability to express emotion means the ability to identify
emotions in one’s feelings and thoughts and then expressing them.

Email – hello@edutap.co.in, M - 8146207241 7|P a g e http://www.edutap.co.in

 In order to be effective, a leader must be capable of expressing his feelings because
expression when expressed in a regulated way has the ability to overcome negativity and
can bring clear vision towards the goal. Example: It was not always an easy journey for
SpaceX and Tesla Motors CEO Elon Musk. Recalling the ‘worst year’ of his life, during an
interview, Musk can be seen crying about the challenges he faced in the year 2008. Video
shows the raw emotion of the toll that tesla and SpaceX took on Elon Musk to make it
what it is today and also his Never give up attitude. According to Musk, “Building a
company is like having a child: you nurture it, take care of it even when it will ruin you but
your ability to express emotions will keep you going.”

5) Situational leadership demands both technical and emotional skill: Effective leaders
understand the situation and lead accordingly. How well can you read a room? “When you
meet with somebody, you have to figure out very quickly how to make connections,”
explained Yu. “This extends to how you look at non-verbal cues. For all this you require
good level of emotional skills.

Leaders with high EQ generate hope, conviction and create followers that naturally produce
results because they instill confidence in people who may be frightened and have
hesitation, weakness, and pessimism. Hence, it can be summarized that EQ leads to
Leadership Effectiveness. Moreover, “As more and more artificial intelligence is entering
into the world, more and more emotional intelligence must enter into leadership.”

Q.3) Write a short note on Transactional Analysis (400 words, 10 Marks)

Approach

Introduction: Start with some famous quote.

Body: Define the Transactional Analysis and discuss the factors involved in Transactional
Analysis with examples

Conclusion: Conclude it by highlighting the importance of Transactional Analysis

Answer

According to Eric Berne - “The destiny of every human being is decided by what goes on
inside his skull when confronted by what goes on outside his skull.”

Email – hello@edutap.co.in, M - 8146207241 8|P a g e http://www.edutap.co.in

 Transactional analysis refers to the method of analysing and understanding interpersonal
behaviour. When people interact, there is social transaction in which one person responds
to another. The study of these transactions between people is called transactional analysis.

Transactional analysis involves analysis of the following factors:

1. Self-Awareness:
Self-Awareness implies knowing about ourselves. To what extent, a person is aware of
himself affects his interpersonal transactions. In an organization, manager and employees
should be like an open area on Johari window framework where you and people know
about yourself. Example: Richard Branson, Founder, and Chairman of Virgin Group- is
open about the fact that he struggled with dyslexia in his youth. He advocates for better
support for young people to help them understand dyslexia as a “different and brilliant
way of thinking.

2. Ego states:
“An ego state is a pattern of behaviour that a person develops as he or she grows, based on
his or her accumulated network of feelings and experiences.” Ego state can be of Parent
(overprotective and strict), or it can be of Adult (Rational and logical), or it can be of child
(attention seeking or silent compliance) Example: Harbhajan Singh Slapping Sreesanth in
an IPL match shows the child ego state of Harbhajan due to which he got impulsive and
slapped Sreesanth.

Other players consoling Sreesanth were in Parent Ego state trying to resolve the problem
and telling Sreesanth what the right thing is to do in the situation and what not to do.

Sreesanth even after getting slapped called Harbhajan Singh his big brother was in Adult
Ego state as both are Indian team players and Sreesanth being a junior player made a
rational decision by doing so.
A person of any age may have these ego states in varying degrees. Moreover, a person can
change ego state depending upon situation and modify his behaviour.

3. Analysis of Transactions:
Analysis of Transactions is a technique for examining the nature of interpersonal
communication between the two individuals and to analyse its effectiveness. Depending
upon the ego states of persons involved in transactions, there may be three types of
transactions – complementary, crossed, and ulterior. In an organization, people feel
satisfied with complementary transactions whereas non-complementary transactions lead
to conflict. Ulterior transactions are most complex transactions because if involves more

Email – hello@edutap.co.in, M - 8146207241 9|P a g e http://www.edutap.co.in

 than two egos states working at the same time with double meaning in the stimulus and
just like crossed transactions, ulterior transactions are also undesirable. Transactional
analysis is a technique which helps to understand the behaviour of other person so that
communication becomes effective.

4. Script Analysis:
Script analysis is the method of uncovering the "early decisions, made unconsciously, as to
how life shall be lived”. It helps know us how our thoughts have been influenced by certain
experiences. For example: Ratan Tata, Tata Group Chairman emeritus and a
philanthropist, is known for his charity work. But lessor is known about his sources of
inspiration that influenced his early life. Tata group has always been a source of
inspiration and sensitive to the struggles of ordinary people. The values engrained in
Ratan Tata by his grandmother during his early childhood and then the value system of
Tata group has changed his view regarding the life.

5. Psychological Games:
Psychological games are played by individuals to fill up time or to provoke attention. For
example, if a manager feels he is not getting respect from other people, then he might
start calling people for meetings and start finding unnecessary mistakes. Psychological
games are not good as they prevent open, warm, and intimate relationship. These must be
discouraged in an organization.

6. Study of Life Positions:

In the process of growing up, people make basic assumptions about their own self-worth as
well as about the worth of significant people in their environment. These assumptions tend
to remain with the person for life unless major experiences occur to change them. The
combination of assumptions about self and the other person is called LIFE POSITION. I am
Ok, you are Ok is an ideal life position. In it, people work with adult ego state and leads to
adult-adult transaction. There is no conflict situation and there is total understanding
among subordinates and peer group. For example: The most high-profile ownership battle
in the history of corporate India ended with the Reliance group announcing a settlement
between the Ambani brothers "Mukesh and Anil” with both the brothers assuming the
life position of I am OK, you are Ok. The two brothers compromised, and the Reliance
group was split into two with Reliance Industries, IPCL going to Mukesh Ambani and Info
comm, Energy and Capital going to Anil Ambani. Both the brothers ended the
conflict with a total understanding between the two.

Email – hello@edutap.co.in, M - 8146207241 10 | P a g e http://www.edutap.co.in

 7. Stroking:
Stroking is an act of implying recognition to another person. Stroking is recognition that a
person gives to others for good work done or even bad work done. In an organization,
managers must make sure that well performing employees are rewarded for their work.
Example: Recently, Tata Sons conferred the title of Chairman Emeritus on Ratan Tata as a
recognition for his illustrious career as Tata group Chairman.

In conclusion, transactional analysis constitutes an essential approach in understanding

human behaviour that is so relevant for effective interpersonal behavior. It would be
beneficial for the managers to understand the concept and use it for making business
interaction worthwhile.

Q.4) What is the importance of Emotional Intelligence in an organization? (400 words, 10

Marks)
Approach

Introduction: Start with some famous quote.

Body: Highlight the importance of EI with example.

Conclusion: Conclude with some real-life examples.

Answer

In today’s context, Emotional intelligence or emotional quotient (EQ) is perceived to be the

most important factor in a person’s success. According to Goleman, IQ contributes only 20%
to a person’s success whereas the remaining 80% is contributed by Emotional Intelligence.

In particular, Emotional Intelligence is important to an organization in the following ways:

1) Filling the Organizational positions:

In the selection process for various posts in an organization, various characteristics of an
individual are taken into consideration like age, educational background, experience,
etc. While all these characteristics are important, recently emphasis is being given to the
emotional quotient because of its contribution to professional success. For example: a

Email – hello@edutap.co.in, M - 8146207241 11 | P a g e http://www.edutap.co.in

 study of U.S. Air Force recruiters showed that top-performing recruiters exhibited high
levels of EI. Using these findings, the Air Force revamped its selection criteria.

2) Quality of Work Life:

Work-Life is concerned with the impact of work on the people and the organizational
effectiveness. Emotional Intelligence stimulates motivation, ease changes, reduces
stress, encourages empathy and a positive attitude towards self and others, and hence,
ultimately enhances the quality of work life.

3) Effective Communication:
Communication is the essence of every organization. There are many barriers to
communication and one among those barriers are emotions. For example, a receiver of
the message is likely to interpret the message differently when he has negative
emotions like anger or frustration. Emotional Intelligence helps in avoiding such a
distortion in communication by helping to understand and regulate emotions, thereby
making it effective.

5. Stress Management:
Stress Management is quite common these days. It must be managed effectively.
Emotional Intelligence helps in managing stress as stress largely depends on how you
react to a particular condition. Emotional Intelligence helps to control stress by
controlling our extreme reactions.

6. Conflict Resolution:
Conflict is any situation in which two or more parties feel themselves in opposition.
Many a time we do not understand the perspective of others which leads to conflict.
Emotional Intelligence helps people to understand the other’s point of view, why they
are taking a particular stand and hence it not only helps resolve conflict, but it also
prevents conflicts in the first place.

7) Credibility of Managers:
Credibility of Managers is a prerequisite for managerial success. Credibility of a manager
is reflected in trustworthiness, honesty, and integrity, Informativeness, and dynamism.
Since emotional intelligence stimulates consistency in a person’s behaviour, it leads to
integrity and honesty, promotes effective communication, and eases change, EI
enhances the Credibility of Managers.

Email – hello@edutap.co.in, M - 8146207241 12 | P a g e http://www.edutap.co.in

 Leaders of some of the leading organizations such as Jeff Bezos of Amazon, Narayan Murthy
of Infosys, Ratan Tata of Tata’s have been known for their Emotional Intelligence and they
have made sure that people in their organizations are made aware of EI aspect so as to help
them contribute towards organizational growth in more effective manner.

15 Markers

Q.1) What are some strategies of Managing the emotions. What is the implication of
emotional intelligence for Managers? (600 words, 15 Marks)
Approach

Introduction: Start with a famous quote related to managing emotions

Body: Explain the different strategies of managing the emotions and Implication of EI for
managers

Conclusion: Conclude it with a famous quote highlighting the importance of EI in workplace.

Answer

“Anyone can be angry—that is easy. But to be angry with the right person, to the right
degree, at the right time, for the right purpose, and in the right way — that is not easy.” So
wrote Aristotle, more than 2000 years ago, in his classic work The Art of Rhetoric
highlighting the importance of Managing the emotions.

Managing Emotions at workplace is essential for success. There are critical emotions like
anger, feat etc. which must be controlled. The process of managing emotions is called
emotion regulation. Some prominent methods of managing emotions are:

1. Understanding desired emotional skills

Developing and managing emotional intelligence requires acquisition of certain em otional
skills. Research has identified Self-Awareness, Empathy, Resolving Conflicts, Emotional
Suppression, cognitive Reappraisal and Social Sharing as such skills. For example: With his
quirky laugh and self-deprecating style, Jeff Bezos does not sound like a Fortune 500 CEO
and that’s probably to his benefit. His obsession with the hearts and minds of his
customers and his long-term perspective on relationships (and business strategy) are

Email – hello@edutap.co.in, M - 8146207241 13 | P a g e http://www.edutap.co.in

 legendary. Apart from these social skills, Bezos is also known for his emotional skills like
Self-Awareness, Empathy etc. From handwritten notes to employees, praising their work
to expressing emotions, Jeff Bezoz understands the desired emotions skills.

2. Developing Higher Self-Esteem

Self-Esteem of a person is related to how he perceives about this ability and his approach
on interacting with others. High-Self-esteem is necessary for being happy, healthy, and
successful because it not only gives a person realistic confidence in himself but also the
ability to handle adversities. For example: Sir Richard Branson, a world-famous
entrepreneur, adventurer, activist, and business icon, has launched a dozen billion-dollar
businesses and hundreds of other companies. All this despite the fact he was a dyslexic
school drop-out. Branson is open about the fact that he struggled with dyslexia in his
youth and has always maintained a high self-esteem.

3. Dealing with Emotional Upsets

Dealing with emotional upset is an important skill required for managing emotions, whether
in organization or at other places. When we deal with upsets, everyone is likely to have
negative feelings for some time. For, people with high emotional intelligence, this period
may be short whereas for people with low emotional intelligence, this period may be long.
These emotional upsets should be dealt with effectively. Example: It was not always an
easy journey for SpaceX and Tesla Motors CEO Elon Musk. Recalling the ‘worst year’ of his
life, during an interview, Musk can be seen crying about the challenges he faced in the
year 2008. Video shows the raw emotion of the toll that tesla and SpaceX took on Elon
Musk but his ability to dealt with the upsets and a Never give up attitude had made him
what he is today.

4. Coping with Anger

Anger is one of the most common negative emotions and everyone gets angry for some
point of time. Any action taken when in grip of anger may not be a rational decision. The
steps to be followed to deal with anger shall be:

i) Better to avoid actions during the period when one is angry.

ii) Analyse causes of anger and situations under which anger takes place so that causes can
be avoided.

5. Practicing Emotional Quality Management

Email – hello@edutap.co.in, M - 8146207241 14 | P a g e http://www.edutap.co.in

 Like Total Quality Management, the concept of EQM has emerged which indicates that
emotional quality of an organization should be as important as in TQM. EQM requires the
management of certain emotional competencies such as
a. Ability to take responsibility for one’s own success.
b. Ability to use emotions as a source of productive energy.
c. Ability to empathize with, validate, motivate, inspire others as appropriate.
d. Ability to effectively communicate and discuss emotions.
e. Ability to resolve conflicts.

“If you do not have control over your emotions, you will not have control over your future.”
Hence emotional intelligence is essential for modern day organizations and has the
following implications for the managers:
1. It helps the managers to recognize that emotions are a natural part of the workplace
and good management does not mean creating an emotion-free environment.
2. It helps to foster effective decision making, creativity, and motivation in employees,
model positive emotions and moods as much as is authentically possible.
3. It helps in providing positive feedback to increase the positivity of employees. Of
course, it also helps to hire people who are predisposed to positive moods.
4. In the service sector, it helps to encourage positive displays of emotion, which make
customers feel more positive and thus improve customer service interactions and
negotiations.
5. It helps to understand the role of emotions and moods to significantly improve your
ability to explain and predict your coworkers’ and others’ behavior.

Emotional Intelligence at workplace helps an individual to respond instead of reacting to a

situation as ““When you react, you let others control you. When you respond, you are in
control.”

Q.2) Discuss the major myths about emotional intelligence. How is emotional intelligence
important for people? Also discuss the areas in which emotional intelligence can be
applied in organization. (600 words, 15 Marks)
Approach

Introduction: Start with a quote related to myths.

Body: Explain the myths related to emotional intelligence, how emotional intelligence is
important for people and also discuss the areas in which emotional intelligence can be
applied in organization.
Conclusion: Conclude with the standard quote highlighting the importance of EI.

Email – hello@edutap.co.in, M - 8146207241 15 | P a g e http://www.edutap.co.in

 Answer

“The Cave You Fear to Enter Holds the Treasure You Seek” by Joseph Campbell suggest that
Fear is a powerful and primitive human emotion that can act as a hindrance for your dream
to become reality.

Similarly, there are certain myths which acts as a hindrance in realising the full potential of
emotional intelligence. The major myths associated with the emotional intelligence are as
following:

1. Emotional intelligence is sometimes treated as being nice to others which is not true.
It generates rational behaviour which must suit to the situation. In many situations,
being nice to others is not a rational behaviour because the other person does not
expect such a nicety. In these situations, even confronting is the demand of
emotional intelligence. For example: Wells Fargo, CEO of John Stumpf, has always
avoided conflict and tried to be nice but this became a particular problem for his
company because he shied away from ever telling his employees that they needed
to work harder. It got so bad that he had other employees calling him telling him
that their colleagues were slacking off so much that it they couldn’t do their own
jobs. So, the CEO began working with a coach who helped him speak to the
laggards, telling them clearly what he expected of them — without threats or
blame, but also without passivity. And to his surprise, the conversations went
smoothly, and the former slack-offs started pulling their own weight. Since then,
he’s becoming much more assertive about confronting his shirking employees.
2. Emotional intelligence does not mean giving free reinforcement to feelings. Rather,
it involves managing feelings so that these are expressed appropriately and
affectively, enabling people to work together towards common goals. For example:
It was 1994. Apartheid had ended and Mandela had just won the first election in
which Blacks had the right to vote. He assumed the Presidency of a country deeply
divided. A large section of Blacks, who had been dominated politically, socially and
economically for decades, bayed for revenge. The Whites, fearing reprisals,
planned to exit the country. The statesman that Mandela was, he understood the
implications. A rainbow nation, he realised, was the only way forward to ensure
prosperity in South Africa. He not only forgave those who imprisoned him for over
26 years but also wanted his followers to do the same.
3. There is a myth that men have higher emotional intelligence than women. It is not
true. Various researchers have shown that emotional intelligence has nothing to do
with gender though there are certain gender specific characteristics of men and

Email – hello@edutap.co.in, M - 8146207241 16 | P a g e http://www.edutap.co.in

 women. Its not only the research but the real-life examples also like Indra Nooyi,
Mary Bara etc who stands equal when compared to their male counterparts in
terms of emotional intelligence.
4. There is a myth that emotional intelligence is fixed genetically and develops on in
early childhood. This is not true. While IQ does not change much after adolescence,
emotional intelligence changes over a period. This happens because IQ is a biological
phenomenon while emotional intelligence is a learned phenomenon.

Goleman suggests Intelligence Quotient contributes only 20% to a person success, rest it
depends on Emotional intelligence. Importance of emotional intelligence in a person’s life
are:
1. General Happiness: Emotional Intelligence leads to general happiness. High EQ
generates positive feelings which result in general happiness.

2. Rationality in behavior: Emotional intelligence leads to rationality in behaviour.

Rationality is defined as the capacity for objective action. Thus, if appropriate means
have been chosen to reach the desired ends the behaviour is rational and with high
EQ a person always thinks and choose the appropriate means.

3. Fulfilling Social Objectives: A person with high EQ can fulfill social objectives by
being accepted in the society rather than a person with low EQ who can over-react
on being overpowered by emotions.

Emotional Intelligence is key for leaders at all levels of organizations, regardless of industry.
Before you discount the value of Emotional Intelligence in the world of work, make sure
you’re considering its range. Emotional intelligence can be applied in organization in the
following areas:

1. Filling Organizational Positions: The level of emotional intelligence required for jobs
at various levels can be matched with EQ of the individuals applying for the job, to
get the best fit. Employers should consider it a factor in hiring employees, especially
for jobs that demand a high degree of social interaction. For example, a study of U.S.
Air Force recruiters showed that top-performing recruiters exhibited high levels of
EI. Using these findings, the Air Force revamped its selection criteria.
2. Conflict Resolution: Conflict is any situation in which two or more parties feel
themselves in opposition. Many a times we do not understand the perspective of
other which leads to conflict. Emotional Intelligence helps people to understand the
others point of view, why they are taking a particular stand and hence it not only
helps resolve conflict, but it also prevents conflicts in first place.

Email – hello@edutap.co.in, M - 8146207241 17 | P a g e http://www.edutap.co.in

 3. Creativity: According to a research conducted at Oxford University, there is a
positive and significant relationship between emotional intelligence and creativity at
work. However, this is not a straight-forward relationship viz: emotional intelligence
= creativity. The researchers found that emotional intelligence tends to lead to
creativity if two conditions are present. Firstly, that the individual has a ‘proactive
personality’. Secondly, the work environment supports it.
4. Customer Service: Workers’ emotional states influence the level of customer service
they give, which in turn influences levels of repeat business and customer
satisfaction. For Example: British telecommunications company, BT, wanted to make
a change because their customers were growing increasingly dissatisfied. So, they
hired new employees with focus on EQ as dominating skill. The results speak for
themselves, with customer interaction increasing by 200% with a 40% improvement
in service delivery.
5. Safety and Injury at Work: Research suggests employers might improve health and
safety by ensuring workers are not engaged in potentially dangerous activities when
they are in a bad mood. For example: After claims of a higher-than-average injury
rate at Tesla’s Fremont factory, CEO Elon Musk urged workers to report all injuries
with no exception, adding he would personally visit the factory floor and perform
the same tasks as injured Tesla staff. He personally wrote emails to workers that
how much he cares about their safety and wellbeing. Empathy shown by Elon Musk
toward worker not only resulted in reduced number of accidents but also making the
Company the best in its domain.
6. Leadership Effectiveness: Goleman says that emotional intelligence, specially at
higher level of organization, is the sina qua non for leadership. Research indicates an
extraordinarily strong link between emotional intelligence of leaders and
performance of organizations.

Hence in the wordings of Daniel Goleman, it can be concluded that “If your emotional
abilities aren't in hand, if you don't have self-awareness, if you are not able to manage your
distressing emotions, if you can't have empathy and have effective relationships, then no
matter how smart you are, you are not going to get very far.”

Email – hello@edutap.co.in, M - 8146207241 18 | P a g e http://www.edutap.co.in

 Previous Year Questions – 2021 Onwards
Please be informed that in this section we will be discussing all the descriptive Previous Year
Questions (PYQs), all the questions appearing in this section has a tag of the year in which
that question was asked. If there is no question in this document on any exam from a
particular year or years, it means that no question was asked for that exam in that year(s)
or exam itself was not conducted in that year.

There was no question asked from Emotional Intelligence and Interpersonal behavior in
2021 and 2022

Previous Year Questions – 2007- 2014

There was no question asked from Emotional Intelligence and Interpersonal behavior from
2007 to 2014

Homework Question
Q1) Write a Short Note on: (600 words, 10 Marks)

I. Johari Window

II. Script Analysis

III. Life positions

Email – hello@edutap.co.in, M - 8146207241 19 | P a g e http://www.edutap.co.in

Email – hello@edutap.co.in, M - 8146207241 1|P a g e http://www.edutap.co.in
Email – hello@edutap.co.in, M - 8146207241 2|P a g e http://www.edutap.co.in
 Introduction
This document consists of 4 sections

1) 10 Marker Questions: In this part we shall be giving you 10 marker questions.

These are supposed to be somewhat direct and easy as compared to 15 marker
questions

2) 15 Marker Questions: In this part we shall be giving you 15 marker questions.

These are supposed to be little complex or consisting of multiple sub questions or
may be an integrated question from concepts of different chapters

3) Previous Year Descriptive Questions: The previous year descriptive questions are
subdivided into two sections
a. 2021 Onwards: We shall cover all previous year questions asked in the exam
from 2021 onwards
b. 2007-2014: We shall cover all relevant previous year questions asked in the
exam between 2007-2014
I. Some questions from previous years might not be covered in any of the
chapter since they might not belong to current syllabus. The syllabus
earlier was different from the current syllabus.
II. Some questions from previous years might not be covered as they are
related to current affairs of that year which is not relevant now.
III. Moreover, some chapters have lot of previous year questions, in those
chapters we have given complete answers to some questions and for the
rest of the questions, the answer outline is given
c. The exam was conducted in objective pattern between 2015 and 2020. For
these years no subjective questions is there

4) Homework Question: There is one homework question for you to think and write.
The answer for this question will not be given by us.

Email – hello@edutap.co.in, M - 8146207241 3|P a g e http://www.edutap.co.in

 Other Guidelines

1. The answers given here are not to be crammed. They are not given from the
perspective of being perfect answers. No answer is a prefect answer. If we ask
500 people to write answers to these questions, then we will get 500 different
answers and we cannot decide which one is perfect answer. The answers given
here is to help you guide towards the approach to answer writing

2. The answers written here may exceed the word limit in some cases. But that is
done intentionally, so that you understand it better and in exam you can
further summarize that information to achieve the desired word-limit.

3. In certain answers, the content/points written may not be covered in the

notes/videos. But that is also done to make you realize that we cannot simply
be bookish in writing answers, rather some content/points need to be written
from our understanding of things. This is called the application part

4. We would recommend that questions to the answers should not be just read.
What you shall do is
a. For 2-3 questions, please write answer in your own words so that you get
practice for descriptive writing. Then try to match your answer with
answer given by us and try to self-evaluate
b. For the rest of the questions, try to make an outline as in what you will
write in this answer. Then try to match your outline with answer given by
us and try to self-evaluate

5. Please refer the videos on “Science and Art of Descriptive Writing” that have
been included earlier in the course. Those videos shall be watched again and
again to get better hold on answer writing

Email – hello@edutap.co.in, M - 8146207241 4|P a g e http://www.edutap.co.in

 10 Markers (400 Words)

Q.1) “Conflict is not always bad”. Do you agree? (400 Words, 10 Marks)
Approach
Introduction: Start with a quote regarding conflict and highlight the two sides of conflict for
comparison.

Body: Discuss the two sides i.e., Positive and Negative aspects of Conflict with example.

Conclusion: Conclude with highlighting of understanding of both aspects in regard to modern

day organization and agreeing to the given statement in the question.

Answer
“Because people aren't perfect and relationships are messy, we all need to learn how to
better resolve conflicts.” Though many of us tend to view conflict as a negative occurrence,
it has both positive and negative aspects, which arise both during and as a result of
interactions between conflicting individuals or groups. The negative aspects of the conflict
are as following:

1. Waste of time and Resources: The business may lose precious time and resources at
times of conflict. Instead of concentrating on meeting their objectives, employees waste
time on divisive issues. As a result, organizations can lose money, donors, and access to
essential resources.

2. High tension among employees leading to low productivity: Conflict may create high
tensions among the individuals and groups and a stage may come where it is very
difficult for the management to resolve the conflict. Excessive conflict generates the
feeling of anxiety, uncertainty, frustration and hostility. For example, recently, workers
at Tata Steel's Dutch plant went on a strike to protest against the planned job cuts.
The strike not only resulted in halting the production activity in the Dutch plant but
also delayed the shipments for the Tata steel Britain’s Plant.

3. Discontent among employees leading to high attrition: In case of intra-individual and

inter-individual conflict particularly, some dynamic personnel may leave the
organization if they fail in the resolution of conflict in their favour. For example,
Continuous conflict between the Infosys founder Mr. Narayan Murthy and ex-CEO Mr.
Vishal Sikka ultimately created dissatisfaction for the latter one and ultimately leads
to the submission of his resignation to the board of Infosys.

Email – hello@edutap.co.in, M - 8146207241 5|P a g e http://www.edutap.co.in

 4. Goal displacement: The goals initially set are not pursued and instead some other goals
which are not in the interest of the organization are pursued. For example, ln some of
the organizations, the performance of employee may be decided based on attendance
and punctuality. And gradually these become the key criteria for performance
measurement due to conflict between the manager and the employees.

5. Conflict as Cost to Organization: Conflict may weaken the organization as a whole if the
management is not able to handle them properly. If the management tries to suppress
the conflict, then it may acquire gigantic proportions in the later stage and if the
management doesn’t interfere in the earlier stage, unnecessary troubles might be
invited at the later stage. However, this may become cost on the part of the
organization if the conflicting relationship blocks the realization of organizational goals.
According to The National Institute for Occupational Safety and Health report, an
estimated one million employees miss work each day because of stress due to conflict
and this costs companies an average of $702 per employee per year.

6. Soft costs, on the surface, are those things that may not seem measurable or easily
assigned a specific dollar amount, but they still affect your bottom line. For example,
Morale: People are likely aware of an ongoing conflict, and this awareness can affect
morale on all levels. Reputation: Word gets around fast when people find a great
enterprise that really values its employees. Disgruntled employees’ comments can
scare off a future valued employee and potential customers.

Due to Conflict of Interest to capture maximum customer base in India, telecom giants like
Jio, Airtel, Idea, etc. lowered the tariffs of telecom services provided to customers in order
to attract them. The conflict of interest to capture maximum customer base ultimately
benefited the customer in terms of saving of money and improved services. Hence conflict
has positive side too for an organization in the following:

1) Creates Change: Conflict accelerates change in an organization, especially in small

businesses, where it is easy to formulate and implement new policies. Conflict prompts
modification of policies and operation procedures in the organization. In cases of
extreme conflict, the organization may conduct a complete overhaul of its leadership,
bringing in managers with fresh ideas.

2) Innovation: Conflict that results in healthy competition cultivates innovation and

inventiveness among employees. For example, Burger King and McDonalds as being
from the same sector – Fast Food and them launching around the same time has
arisen unavoidable competitiveness which has created a conflict between the two
organizations. This competitiveness has forced them to innovate not only in terms of
variety of cuisines but also the quality of services to the customers.

Email – hello@edutap.co.in, M - 8146207241 6|P a g e http://www.edutap.co.in

 3) Cohesiveness: Inter-group conflict brings about solidarity among the group members.
The members of a group face the external pressures unitedly and show greater degree
of group loyalty. This increases group cohesiveness which could be utilized by the
management for the attainment of organizational goals in an effective manner. As
cohesiveness increases, differences are forgotten. For example, Recent, tussle between
the Indian Medical Association (IMA) and Ayurveda businessman Baba Ramdev has
created the solidarity among the group members of the two branches of Medicine in
India i.e., Ayurveda and Allopathy (Modern Medicine). The tussle is no more remains a
tussle between IMA and Baba Ramdev but has become Ayurveda vs Allopathy with
the respective practitioners supporting their branch of medicine.

4) Improve Job Satisfaction: If disagreements are handled effectively rather than

punitively or worse, ignored altogether, employees may start to recognize they have
more of a voice than they originally thought, and it will improve the job satisfaction. For
example, STAR or Saving Talent at Risk is an initiative of Wipro that evaluates the
health of an employee in a team. It aims at sensitizing supervisors in terms of conflict
resolution mechanism in order to read the non-verbal signs that members show, and
proactively handling conflict/stress or other issues.

5) Effective Decision Making: Any decisions taken at any level have to take into account
the conflicting needs of the individuals who are affected by the decisions and hence
conflict resolution is a part of the decision-making process. For Example, recently,
Reliance’s Industries virtually conducted its 43 rd Annual General Board meeting and
important decision regarding the company’s future growth aspect were taken.
Shareholders were provided detailed information to address their conflicts of interest
and in return shareholders favoured the key aspects of the company thus creating a
win: win situation for the shareholders and the company.

Conflict can arise from opposing ideas. A conflict is a struggle or an opposition which is
inevitable. Understanding positive and negative conflicts in the workplace is an important
part of being an efficient manager. Conflict in the workplace can have different effects
depending on how it is managed. Hence from the above analysis it can be easily concluded
that conflicts are not always bad provided how they are handled.

Email – hello@edutap.co.in, M - 8146207241 7|P a g e http://www.edutap.co.in

 Q.2) Describe the various stages of conflicts? (400 Words, 10 Marks)
Approach
Introduction: Start with defining conflict with some standard definition by authors.

Body: Discuss the various stages of conflict with example.

Conclusion: Conclude on the need to identify the conflict as early as possible and resolving
it.

Answer
“Conflicts involve struggles between two or more people over values, or competition for
status, power, or scarce resources” - L. Coser

The basis of conflict may vary but it is always a part of society. Conflict exists everywhere.
The only way to resolve conflict is to, first, recognize conflict by understanding the stages of
conflict.

Accordingly, conflict passes through five stages as highlighted below:

Latent Stage:
The first stage in the five stages of conflict, people may be in conflict without being aware
that they are in conflict. The conflict has not taken a shape, therefore it is not apparent. It
may occur in the subconscious mind. For example, Competition for scarce resources. For
example, Infosys board decides to reward Sikka with a 55% rise in compensation package
to $11 million, making the founder promoters extremely discontent with the decision. At
this stage, the conflict has not taken a shape, therefore it is not apparent between the
founders and New CEO.

Perceived Stage
In the perceived stage, one or more parties become aware of actual conflict. Note that
there may be no conditions of latent conflict present in the perceived stage. In that case,
conflict may be resolved by simply improving communications between affected parties.
For Example: Founders including Murthy, S.D. Shibulal and Kris Gopalakrishnan have a
meeting with Seshasayee and Sikka. The founders expressed their concerns over
corporate governance issues. During this stage, Founders were frustrated with the new
CEO over his methods of running the Infosys which made the conflict perceived.

Felt Conflict:

Email – hello@edutap.co.in, M - 8146207241 8|P a g e http://www.edutap.co.in

 Felt conflict is the stage when the conflict is not only perceived but actually felt and
recognized. The felt stage of conflict concentrates on emotions coming into play for
affected parties. In other words, two people are aware that they’re having a conflict in the
workplace. It contributes to feelings of tension, stress, and anxiety. For example, the board
of Infosys, under the pressure of founder of the company, appointed Law firm Gibson,
Dunn & Crutcher to submit a report to the board to see if there is any evidence of any
Infosys executive profiting from the decision to buy Panaya, an Israeli software company,
in February 2015. This incidence made the conflict between the founders and CEO Vikas
Sikka felt all across the company management.

Manifest stage
In the manifest stage, conflict is out in the open. It is the stage when the two parties engage
in behaviors that evoke responses from each other. At this stage, attempts must be made
to resolve them through a conflict resolution mechanism. For Example: In an email to the
board, Founders asks if the company could categorically say that no employee or a
relative of the employee benefited from Infosys’ decision to spend $200 million to buy
Panaya. The continuous incidences like this resulted in the manifestation of the conflict
between Founders and CEO of Infosys. According to insiders, Vikas Sikka talked with the
chairman of the board a few times regarding stepping down as CEO of the company as he
had been under continuous attack by the founders.

Conflict Aftermath
The final stage is the “Aftermath Stage,” which takes place when there is some outcome of
the conflict, such as a resolution to, or dissolution of, the problem. If the conflict is
genuinely resolved to the satisfaction of all participants, the basis for a more cooperative
relationship may be laid. If the conflict is merely suppressed, the latent conditions for
conflict may be aggravated and conflict may again arise in more a serious form. For
example, CEO Vishal Sikka resigns, ending a prolonged rift between the company’s board
and promoter shareholders led by N.R. Narayana Murthy over issues of poor governance
practices.

Most of the time, recognizing and addressing issues that cause conflict will lead to a fast
and effective resolution. The problem lies in the fact that solutions are not always so easy.
When both parties feel they have been wronged and expect their demands to be met, then
the conflict can escalate. This is why it is important to recognize the signs of conflict along

Email – hello@edutap.co.in, M - 8146207241 9|P a g e http://www.edutap.co.in

 with the stages of conflict as early as possible so that they may be addressed. Hence it can
be concluded in the words of Max Lucado – “Conflict is inevitable, but combat is optional”

Q.3) What is Conflict? What are the sources of conflict in an organization? (400 Words, 10
Marks)
Approach:
Introduction: Define conflict with an example

Body: Discuss the sources of conflict in an organization with examples.

Conclusion: Conclude by giving a solution to control it.

Answer
Organizational Conflict or otherwise known as workplace conflict, is described as the state
of disagreement, or misunderstanding, resulting from the actual or perceived dissent of
needs, beliefs, resources, and the relationship between the members of the organization.
Conflict is the existence of opposition or dispute and antagonistic or hostile interaction
among groups or between persons.
For example: Back in April 2011, Apple had filed a lawsuit accusing Samsung of copying
the “look and feel” of the iPhone when the Korean company created its Galaxy line of
phones. Samsung countersued Apple for not paying royalties for using its wireless
transmission technology. Since then, the number of patents under dispute has
skyrocketed, according to the Korea Times.

Organizational sources of conflict are those events or factors that cause goals to differ and
are created by a variety of causes. Following are the sources of conflict in an organization:

Unclear Responsibility:
If there is a lack of clarity, regarding who is responsible for which section of a task or
project, conflict takes place.
A lack of clear roles can create an ineffective working environment. Employees can often
feel they can leave the job as they are not solely responsible. "Someone else will do it!"
They can also create a toxic 'finger-pointing' culture as there is not one person responsible
for completing a task. Employees will pass the blame as it is unclear who 'dropped the ball'.
Hence, to avoid such a situation, the roles and responsibility of the team members should
be stated clearly and also agreed upon by all.

Interpersonal Relationship:
Interpersonal conflict refers to any type of conflict involving two or more people. Every
member of an organization possesses different personality, which plays a crucial role in
resolving conflict in an organization. Conflicts at the workplace, are often caused by

Email – hello@edutap.co.in, M - 8146207241 10 | P a g e http://www.edutap.co.in

 interpersonal issues between the members of the organization and needs to be addressed.
For example, The Chappell–Ganguly controversy was caused by a series of events in late
2005 and early 2006 which involved highly publicized infighting in the Indian cricket team
between the then newly appointed coach Greg Chappell and captain Sourav Ganguly. The
dispute resulted in the removal of Ganguly as captain and his replacement by vice-captain
Rahul Dravid in November 2005

Scarcity of Resources:
One of the main reasons for the occurrence of conflict in an organization is the inadequacy
of resources like time, money, materials, etc. due to which members of the organization
compete, leading to conflict between them. For example: Recently, a conflicting situation
came up between the Indian American diplomatic ties when USA decided to ban export of
important raw material to Serum Institute of India which is used for making covid
vaccines. The ban of raw material was imposed due to scarcity of the same in USA.

Conflict of Interest:
When there is disorientation between the personal goals of the individual and the goals of
the organization, conflict of interest arises, as the individual may fight for his personal goals,
which hinders the overall success of the project. For example, hiring an unqualified relative
to provide services your company needs.

Managerial Expectations:
Every employee is expected to meet the targets, imposed by his/her superior and when
these expectations are misunderstood or not fulfilled within the stipulated time, conflicts
arise. For example, Manager of a water purifier selling company asking his executives to sell
at least 10 water purifies daily even when the maximum daily demand during the peak
season remains around 5-7. This will ultimately result in a conflict between the executives
and the manager. Thus, to avoid such type of conflict, manager need to set realistic targets.

Communication Disruption:
Lack of communication in a workplace can create conflict in relationships among colleagues,
co-workers, supervisors and subordinates, team members and even employees and
customers. For example, In September 2016, Yahoo leadership acknowledged a 2014 data
breach that exposed the accounts of 500 million users to hackers. Three months later in
December, the company then announced that there was another breach from 2013 that
affected one billion accounts. Nearly a year later, in October 2017, Yahoo announced that,
in fact, the data breach affected all 3 billion of its customers. Yahoo’s business
communication failure not only resulted in Damaged brand reputation but also created a
conflict within the organization as well as with the customers.

Reward System

Email – hello@edutap.co.in, M - 8146207241 11 | P a g e http://www.edutap.co.in

 An organization’s reward system can be a source of conflict, particularly if the organization
sets up a win-lose environment for employee rewards.
For example, Top 1% employees of an organization cornering 50% of the bonus
announced during the festive season. This a faulty reward system which creates a
situation of win for the top 1% and lose for the remaining 99% employees.

Workplace conflict exists between individuals and groups, and it may lead to a series of
negative influences on the organization. When people work together, cultural differences,
gender differences, style differences, all kinds of differences occur. Conflicts are normal and
a constant process in any organization. Dealing around these conflicts positively is
important and needs to be sorted so that it does not spoil the atmosphere of organization
by demoralizing others.

Q.4) “Management may take a number of actions to resolve conflict in the organization”.
Explain these actions? (400 Words, 10 Marks)
Approach:
Introduction: Start with a standard quote and introduce to conflict resolution strategies.

Body: Discuss the conflict resolution strategies.

Conclusion: Conclude on a positive note with some standard quote that conflict can be
resolved.
Answer
“We don't get harmony when everybody sings the same note. Only notes that are
different can harmonize. The same is true with people.” ― Steve Goodier. Conflict is not
always bad, nor it promotes differences provided we have a proper conflict resolution
strategy to harmonize the difference.
Kenneth Thomas and Ralph Kilmann developed five conflict resolution strategies that
organization can use to handle conflict. They differ based on the degree of cooperativeness
and assertiveness. Cooperativeness can also be mentioned as a concern for others and
assertiveness can also be mentioned as a concern for self. Based on this concern, behaviour
of parties will be determined. The Five conflict resolution are as following:

1. Avoiding or Repression of Conflicts: Avoiding is when people just ignore or withdraw

from the conflict. This method is used when the discomfort of confrontation exceeds
the potential reward of resolution of the conflict. When conflict is avoided, nothing is
resolved. An avoiding style should be used sparingly and only when something is going
to change: you, the other person, or the situation. For example, it's ok to avoid a
conflict with a co-worker if the manager knows he is going to quit his job soon.

Email – hello@edutap.co.in, M - 8146207241 12 | P a g e http://www.edutap.co.in

 2. Competing (Confrontation): Competing is used when manager goes into a conflict
planning to win. They are assertive and not cooperative. This method is characterized by
the assumption that one side wins and everyone else lose. Competing might work in
sports or war, but it is rarely a good strategy for group problem-solving. For example,
Conflict between Ratan Tata and Cyrus Mistry ended in the unceremonious removal of
Cyrus Mistry and reinstating of Ratan Tata as interim chairman.

3. Accommodating: Accommodating is a strategy where one party gives in to the wishes or

demands of another. They are being cooperative but not assertive. This may appear to
be a gracious way to give in when one figures out, he has been wrong about an
argument. It is less helpful when one party accommodates another merely to preserve
harmony or to avoid disruption. Like avoidance, it can result in unresolved issues. To
make accommodating effective, the other party should also show equal generosity to
maintain a cordial relationship. In its absence, the self-esteem of the first party may go
down which may be a negative aspect of this mode of conflict resolution. For example,
in 1996, Apple facing bad financial results quarter after quarter, bought the NeXT
computer company of ousted ex-apple CEO Steve Jobs. Steve was brought back again
in the hope to save the company i.e., accommodating the employee once the
company fired to avoid disruption.

4. Collaborating (Smoothing or Diffusion of Conflict): Collaborating is the method used

when people are both assertive and cooperative. A group may learn to allow each
participant to contribute with the possibility of co-creating a shared solution that
everyone can support. Differences are suppressed and similarities are accentuated. A
great way to collaborate and overcome conflict is to reach out and touch them.
However, since collaboration is a more time-consuming process, it should be adopted in
resolving those conflicts in which stakes of parties to conflicts are substantial and these
cannot be compromised. For example, Vodafone and Idea, once competitors in the
telecom sector having a conflict of interest to capture maximum customer base
recently collaborated and launched a new telecom company “VI”.

5. Compromising or Containment of Conflict: Another strategy is compromising, where

participants are partially assertive and cooperative. The concept is that everyone gives
up a little bit of what they want, and no one gets everything they want. Compromise is
reached through bargaining or mediation and arbitration. The perception of the best
outcome when working by compromise is that which “splits the difference.”
Compromise is perceived as being fair, even if no one is particularly happy with the
outcome. This is the best strategy to resolve the conflict between management and
workers. For example, the most high-profile ownership battle in the history of
corporate India ended with the Reliance group announcing a settlement between the
Ambani brothers "Mukesh and Anil”. The two brothers compromised, and the
Reliance group was split into two with Reliance Industries, IPCL going to Mukesh

Email – hello@edutap.co.in, M - 8146207241 13 | P a g e http://www.edutap.co.in

 Ambani and Infocomm, Energy and Capital going to Anil Ambani. The settlement was
mediated by homemaker mother Kokilaben.

Conflicts can arise at any time. How an organization utilizes conflict resolution strategies
depends on its conflict style and conflict resolution skills. In other word, “Sometimes, God
doesn’t send you into a conflict to win it; he sends you to end it.”

15 Markers (600 Words)

Q.1) What do you mean by Negotiation? Discuss the important types of bargaining in
negotiation with real life examples.
Approach:
Introduction: Start with a quotation on Negotiation.

Body: Define negotiation with example. Discuss the important types of bargaining in
negotiation with real life examples.

Conclusion: conclude with how to use negotiation in modern day organization.

Answer

“You don’t get what you want, you get what you negotiate”-Harvey Mackay.

A negotiation is a strategic discussion that resolves an issue in a way that both parties find
acceptable. In a negotiation, each party tries to persuade the other to agree with his or her
point of view. By negotiating, all involved parties try to avoid arguing but agree to reach
some form of compromise. Negotiations involve some give and take, which means one
party will always come out on top of the negotiation. The other, though, must concede—
even if that concession is nominal.

Parties involved in negotiations can vary. They can include talks between buyers and sellers,
an employer and prospective employee, or governments of two or more countries.

For example: A three-year long dispute between Starbucks and Kraft Foods over the
distribution of Starbucks packaged coffee in grocery stores was resolved with a
continuous negotiation between the two and Starbucks maintained agreement with Kraft
and the coffeemaker also agreed to pay the food giant $2.75 billion.

Email – hello@edutap.co.in, M - 8146207241 14 | P a g e http://www.edutap.co.in

 Bargaining is a type of negotiation in which people discuss in order to reach agreement on
something such as prices, wages, working conditions, etc. The different types of bargaining
are:

1) Distributive bargaining
It is a competitive bargaining strategy in which one party gains only if the other party loses
something. It is used as a negotiation strategy to distribute fixed resources such as money,
resources, assets, etc. between both the parties.
For example: An example of distributive bargaining is the successful hostile takeover by
pharmaceutical company Sanofi-Aventis's (SNY) of Genzyme Corp. Genzyme produced
drugs for the treatment of rare genetic disorders and Sanofi-Aventis saw the company as
a means to expand into a niche industry and broaden its product offering. As a result of
this hostile takeover, SNY now controls the management of publicly traded company
Genzyme without the consent or cooperation of the company's board of directors. The
loss of ownership control by Genzyme has become a gain for the SNY.

2) Integrative bargaining
It is a negotiation strategy in which parties collaborate to find a "win-win" solution to their
dispute. This strategy focuses on developing mutually beneficial agreements based on the
interests of the disputants.
For Example: After weeks of hectic negotiations, Vodafone India and Idea Cellular have
agreed to merge in a deal valued at $23.2 billion, creating India's largest mobile telephony
company with over 395 million subscribers, 35 per cent of the market share and41 per
cent revenue share thanks to integrative bargaining between the two. Both parties have
collaborated to have a win-win solution.

3) Concessionary bargaining is based on unions giving back previous benefits to the

employer. For instance, trade unions may agree to lower wages in return for job security.
This may come during an economic decline whereby job security is more important to the
unions than higher wages.
For example: Recently, Workers at Tata Steel's main plant in the Netherlands ended a
three-week strike after the company said there would be no compulsory layoffs under a
planned reorganisation of its Dutch operations and trade unions giving concession to
management in terms of accepting no wage hike for the current financial year for job
security. Workers at the IJmuiden plant went on strike on June 10 after unions said the
company had outlined plans to scrap around 1,000 of the 9,000 jobs at the site as part of
a reorganisation of its European operations.

4) Composite bargaining refers to a negotiation that focuses on several elements that are
not related to pay. They are generally related to employee welfare and job security. For
instance, it covers factors such as working conditions, policies, recruitment, and disciplinary

Email – hello@edutap.co.in, M - 8146207241 15 | P a g e http://www.edutap.co.in

 processes. The aim is to ensure a mutually beneficial long-term relationship between the
employer and employee.
For example: In 2018, Hundreds of workers at motorbike companies including Yamaha
Corp and Eicher Motors went on a strike in Chennai, demanding making contract
employees permanent and a right to form unions to defend their interests. Employees
said the companies had employed a large number of contract workers to get around rigid
Indian labour laws that make it difficult to hire and fire full-time staff and have refused to
bring them on company payrolls even after years of contract work.

5) Productivity bargaining involves both parties negotiating around productivity and pay. It
is the the process of reaching an agreement (productivity agreement) through collective
bargaining whereby the employees of an organization agree to changes which are intended
to improve productivity in return for an increase in pay or other benefits.
For example: Amazon is among the companies that have significantly stepped up their
bonus programs this year, noting that its warehouse staff was on the job during the
pandemic and busier than ever as online purchases replaced in-store shopping. As a result
of productivity bargaining between the management and employees, Amazon announced
that its temporary hourly employees will receive $150 and full-time hourly employees will
receive $300.

Negotiation is about knowing what you want, going after it, and respecting the other
person in the process. Remember that the whole point of negotiating is compromise. This
means that you need to look out for yourself, but also be willing to budge in order to satisfy
both parties. Negotiating is to build professional relationships rather than burning bridges
on your way out of the conference room.

“If you are planning on doing business with someone again, don’t be too tough in the
negotiations. If you’re going to skin a cat, don’t keep it as a house cat.” – Marvin Levin.

Previous Year Questions – 2021 Onwards

Please be informed that in this section we will be discussing all the descriptive Previous Year
Questions (PYQs), all the questions appearing in this section has a tag of the year in which
that question was asked. If there is no question in this document on any exam from a
particular year or years, it means that no question was asked for that exam in that
year(s) or exam itself was not conducted in that year.

There was no question asked from Conflicts in 2021 and 2022

Email – hello@edutap.co.in, M - 8146207241 16 | P a g e http://www.edutap.co.in

 Previous Year Questions – 2007 - 2014
There was no question asked from Conflicts between 2007 to 2014

Homework Question

Ques.) “Even organizations which we consider to be ideal ones are not free from
conflicts”. Comment on the statement. What would be the implications of conflict for
modern day organizations? (10 Marks, 400 words)

Email – hello@edutap.co.in, M - 8146207241 17 | P a g e http://www.edutap.co.in

Email – hello@edutap.co.in, M - 8146207241 1|P a g e http://www.edutap.co.in
Email – hello@edutap.co.in, M - 8146207241 2|P a g e http://www.edutap.co.in
 Introduction
This document consists of 4 sections

1) 10 Marker Questions: In this part we shall be giving you 10 marker questions.

These are supposed to be somewhat direct and easy as compared to 15 marker
questions

2) 15 Marker Questions: In this part we shall be giving you 15 marker questions.

These are supposed to be little complex or consisting of multiple sub questions or
may be an integrated question from concepts of different chapters

3) Previous Year Descriptive Questions: The previous year descriptive questions are
subdivided into two sections
a. 2021 Onwards: We shall cover all previous year questions asked in the exam
from 2021 onwards
b. 2007-2014: We shall cover all relevant previous year questions asked in the
exam between 2007-2014
I. Some questions from previous years might not be covered in any of the
chapter since they might not belong to current syllabus. The syllabus
earlier was different from the current syllabus.
II. Some questions from previous years might not be covered as they are
related to current affairs of that year which is not relevant now.
III. Moreover, some chapters have lot of previous year questions, in those
chapters we have given complete answers to some questions and for the
rest of the questions, the answer outline is given
c. The exam was conducted in objective pattern between 2015 and 2020. For
these years no subjective questions is there

4) Homework Question: There is one homework question for you to think and write.
The answer for this question will not be given by us.

Email – hello@edutap.co.in, M - 8146207241 3|P a g e http://www.edutap.co.in

 Other Guidelines

1. The answers given here are not to be crammed. They are not given from the
perspective of being perfect answers. No answer is a prefect answer. If we ask
500 people to write answers to these questions, then we will get 500 different
answers and we cannot decide which one is perfect answer. The answers given
here is to help you guide towards the approach to answer writing

2. The answers written here may exceed the word limit in some cases. But that is
done intentionally, so that you understand it better and in exam you can
further summarize that information to achieve the desired word-limit.

3. In certain answers, the content/points written may not be covered in the

notes/videos. But that is also done to make you realize that we cannot simply
be bookish in writing answers, rather some content/points need to be written
from our understanding of things. This is called the application part

4. We would recommend that questions to the answers should not be just read.
What you shall do is
a. For 2-3 questions, please write answer in your own words so that you get
practice for descriptive writing. Then try to match your answer with
answer given by us and try to self-evaluate
b. For the rest of the questions, try to make an outline as in what you will
write in this answer. Then try to match your outline with answer given by
us and try to self-evaluate

5. Please refer the videos on “Science and Art of Descriptive Writing” that have
been included earlier in the course. Those videos shall be watched again and
again to get better hold on answer writing

Email – hello@edutap.co.in, M - 8146207241 4|P a g e http://www.edutap.co.in

 10 Markers

Q.1) “Change is as important as stability for an organization”. Discuss? (400 words, 10

Marks)
Approach

Introduction: Start with a quote on change and stability and then give a definition of both

Body: Explain about why change and stability important for an organization with examples.

Conclusion: Conclude it with change and stability go hand in hand.

Answer

"Navigating change is the new stability" - Sharon Weil.

Organization change is defined as “any alteration in one or more elements of the

organization”. Changes can be made in any of the following, such as work schedules, basis
for departmentation, span of management, overall organization design, or people
themselves. Whereas A stability involves maintaining the status quo or growing in a
methodical but slow manner. The organization follows a safety oriented, status quo type
strategy without effecting any major changes in its present operations.

For an organization, change is very important, and its importance can be observed through
the following points,

1. Encourages Innovation: Without change, companies may soon find themselves

falling behind the curve and losing ground compared to competitors. They need to
be able to change and adapt to keep up with ever increasingly more technological
and developing times. Example: The Internet search company Google uses a 70-20-
10 rule. They spend 70 percent of their time and resources on their core business, 20
percent on related ideas, and 10 percent on unrelated new businesses to promote a
culture of innovation due to rapidly changing technology.
2. Promotes Skills Growth: An organization’s ability to embrace change help in nurture
new skills and specialties that will help the whole business, including employees to
become much better-rounded and talented team members. Example: Apple based
on its motto of “Think Different” has built up a culture in the organization that
promotes acquiring new skills, collaboration, experimentation, and risk-taking

Email – hello@edutap.co.in, M - 8146207241 5|P a g e http://www.edutap.co.in

 3. Adaptability: Changes bring about a personality in employees and management that
will lead to the ability in adapting to different situations. Every change within a
company will demand a change in an individual’s outlook and personality. Example:
During the pandemic lockdown, offices were shut down, but the working was
continued from home. Work from home became the new normal in the current
scenario.

According to a research, 38% of people like to leave their comfort zone whereas the other
62%, however, immediately feel fear and discomfort and want the status quo. Thus,
stability is also important in the organization in the following ways.

1. Stability leads to growth and progress: If the company is doing reasonably well,
managers may not like to take the risks or hassles associated with more aggressive
growth. Stability allows the firm to stop for a while to re-examine what it has already
done and then proceed cautiously. An organization that has stretched its resources
during the period of accelerated growth may want to attain stability before it
attempts further accelerated growth. Example: Recently Jio has attracted an FDI
worth approx., Rs 44,000 crore due to financially stable Business and management
considering the growth of the venture.
2. Stability lowers the employee turnover: Many studies and researches have shown
that in response to frequent change, employee experiences a high level of
uncertainty which in turn influences their turnover intention. Example: Several
factors are making tougher the challenge of persuading staffers to stay on at Infosys
Technologies, the country’s second-largest information technology (IT) services
entity, the reason being the internal turmoil from the leadership transitions.
3. Stability as a Pause strategy: After organizations have undergone a turbulent period
of rapid growth, managers often pause for a while to integrate strategic business
units, consolidate their position, improve operational efficiency R&D marketing, etc.
pause for a while and prepare themselves for another big leap forward. Example:
Dell used the stability strategy after rapid growth in its E-retailing. Its operations
spread to 95 countries, sales hit $2 billion, and the number of employees grew to
about 6000. At such a time, the company had to slow down to restructure its
operations as it was not ready to handle such growth.

According to Lewin, change for any individual or an organization is a complicated journey

that involves several stages of transitions or misunderstandings before attaining the stage
of equilibrium or stability. Hence Both Change and Stability are important for an
organization.

Email – hello@edutap.co.in, M - 8146207241 6|P a g e http://www.edutap.co.in

 Q.2) What are the key factors that influences the organizational change? (400 words, 10
Marks)
Approach

Introduction: Start with a quote on change and then define “Organizational Change”

Body: Discuss the external and internal factors that influences the organizational change.

Conclusion: Conclude it with, why organizational change is important.

Answer

"To improve is to change, to be perfect is to change often" - Winston Churchill.

Organizational Change is the process in which a company or any organization changes its
operational methods, technologies, organizational structure, whole structure, or strategies,
as well as what effects these changes have on it. The factors which result in organizational
change are grouped into external and internal factors.

External factors: External forces for change derive from the organization’s general and task
environments. External forces causing changes may include technology, competition,
government actions, economic variables, and social values.

1. Technological Changes: Whenever there is a change in technology in the

organizations business sector and other organizations adopt the new technology, the
organization becomes less cost effective, and its competitive position weakens.
Therefore, it has to adopt new technology. When an organization adopts a new
technology, its work structure is affected, and a new equilibrium has to be
established as technology has impact on organization structure and processes.
Example: Nokia which was market leader in mobile phones lost its market share to
Samsung and other players within period of few years. The technology was shifting
towards Android Operating Systems, but Nokia could not adapt to this technological
change. Consumer preference for android kept on increasing but Nokia simply
ignored to shift to changed consumer preference for smart android-based phones.
Ultimately it led its demise.
2. Social Changes: Social changes take place because of several forces like education,
urbanization, feeling of autonomy etc. Social changes impact the people’s
aspirations, their needs, and their way of thinking. Therefore, there is a need for
making adjustment in the organization working so that it matched with the people.
Example: Because of increasing awareness of being environmentally friendly. Now
people are increasingly looking for green products. Wal-Mart has made significant

Email – hello@edutap.co.in, M - 8146207241 7|P a g e http://www.edutap.co.in

 advances in positioning itself to further green courses in their supply chain
operations. As one of the world’s biggest retailers, the company startled many and
its competitors when it placed a strict policy to cut off suppliers whose
manufacturing, processing, and distribution methods contributed to vast carbon
emissions. The Wal-Mart retail stores also utilize 100% renewable energy sources,
and their transportation systems maintain on fuel-efficiency.
3. Political and Legal Changes: Any change in political and legal factors may affect the
organizational operation. Government regulations on health, safety, and the conduct
of business affect an organization. Labor laws influence hiring, pay, training and
promotion decisions. Example: Government regulations related to social media has
prompted many big companies like Whatsapp, Facebook etc. to make changes in
their policies with respect to content being posted on their portals. They are more
vigilant now than ever.
4. Global Change: The increasing globalization of markets has made organizations
sensitive to changes. Any change or crisis in one part of the global market affects
every business, and corrective measures are not often easy and if not taken
immediately, might affect the organization. Example: Blackberry which was once a
highly aspirational phone like apple these days lost is relevant due to not being able
to adapt to technology and changed consumer perceptions.

Besides external factors, any change in an organization’s internal factors may also
necessitate change. Such a change is required because of the following two reasons,

1. Change in Management Personnel: Changes in managerial personnel takes place

very often. Each new manager brings his own ideas and way of working in the
organization. Moreover, attitudes of existing personnel change over the period of
time. The result is that organization has to change accordingly. Example: In 2013,
Netflix CEO Reed Hastings released an 11-page memo to employees and investors
detailing a commitment to move from just distributing content digitally to become a
leading producer of original content that could win Emmys and Oscars. As the memo
said, “We do not and cannot compete on breadth with Comcast, Sky, Amazon,
Apple, Microsoft, Sony, or Google. For us to be hugely successful we have to be a
focused passion brand. Starbucks, not 7-Eleven. Southwest, not United. HBO, not
Dish.” This redefined the way Netflix worked, and rest is history.
2. Deficiency in existing organizational structure: Sometimes change is necessary
because of deficiency in present organizational practices. These deficiencies may be
in form of lack of uniformity in policy decisions, undesirable span of management
and large number of managerial levels etc.

When an organizational system is disturbed by some internal or external force, change

frequently occurs. Change, as a process, is simply the modification of the structure or
process of a system. It may be good or bad, but management in respect of organizational

Email – hello@edutap.co.in, M - 8146207241 8|P a g e http://www.edutap.co.in

 changes are required to maintain equilibrium between various external and internal forces
to achieve organizational goals.

Q.3) Suggest measures that can be used to overcome resistance to change in an

organization? (400 words, 10 Marks)
Approach

Introduction: Start with a quote and then define change with an example.

Body: Discuss the techniques for overcoming the resistance to change.

Conclusion: Conclude it by highlighting the importance of change.

Answer

"People don't resist change, they resist being changed" - Peter Senge

Change is constant and unavoidable. However, human behavior has repeatedly shown a
resistance to change in the existing methods and ways of doing work. Organizations for the
advancement of business processes, require constant adaptation to changes. However,
organizational resistance to change acts as a major hindrance in the path of development
and success of an organization. Such resistance to organizational change brings in the need
for defined change management. Example: Several BSNL central trade unions observed, All
India Protest to oppose the announcement regarding privatization of BSNL.

According to Kotter and Schlesinger (1979) proposed six crucial techniques for overcoming
the resistance to change.

1. Education and Communication: One of the easiest techniques to overcome

resistance to change is to educate people, train them adopt change, counsel them,
and communicate then the various stages of change. Management can change the
attitude of people by training and psychological counselling. This type of effort helps
people to visualize the need and logic of the change, they will appreciate it in a much
better way and will accept it easily. Example: Bonobos company offers “How to
Manage Up Well” programme that train associate-level employees to assist them to
navigate through organizational changes and developments.
2. Participation and Involvement: People who are resisting change may be involved in
some aspect of design and implementation of change so that they do not block the
change and treat change as their own effort. Example: TATA motors facing huge
losses, decided to bring in organizational changes which needed a lot of

Email – hello@edutap.co.in, M - 8146207241 9|P a g e http://www.edutap.co.in

 restructuring within the organization and in order to prevent the resistance to
change, Action Planning Workshops and team-level interventions to enhance
engagement with employees was done. Parivartan, an online listening post was
created for employees to share their comments, feedback, and suggestions on the
existing system as well as the new system to be conceptualized to make them a part
of organizational change.
3. Agreement & Negotiation: This technique is effective when it involves exchanging
something valuable for reducing the resistance towards the change. This is one of
the most convenient techniques for avoiding any kind of major resistance. Example:
In order to exist in the market, long competitors Vodafone and Idea merged keeping
aside their conflict of interest so that they can compete with the telecom giant like
Jio and Airtel. Moreover, the transformation was easy as both the entities came into
an agreement after a well thought out negotiation even after facing small resistance
from a few sections of employee opposed to the merger.
4. Co-optation & Manipulation: This technique involves getting the support,
persuading or influencing the employees in favor of the change. Manipulation
involves covert attempts from the managers by withholding painful information,
twisting or distortion of the information for making it more appealing for the staff
members or spreading false rumors across the organization in order to compel the
employees to accept the change manipulatively.
5. Coercion (Explicit & Implicit): It is a technique of persuading someone to do
something by using force or threats. Example: Thoothukudi Massacre denotes
events that took place on 22 and 23 May 2018 in Thoothukudi, Tamil Nadu, India.
Sterlite Corporation in Thoothukudi town, was facing a resistance against the
proposed expansion of its copper smelter plant due to environmental concerns. In
order to overcome the resistance, Police opened fire on the protesters, killed 13
people and left 102 injured. Thus, coercion should be avoided in all the possible
situation and if required must be used only as the last possible resort.
6. Leadership: It is the process of influencing and supporting others to work willingly to
bring the intended results. After being named CEO of Microsoft in February 2014,
Satya Nadella undertook a major restructuring of the tech giant to eliminate its
destructive internal competition. He regularly sent genuine and emotional email to
employees that gained him trust and aroused commitment from employees. Nadella
started holding a monthly "ask me anything" session with employees where he
transparently discusses issues, answers their questions, and eases their concerns. All
this helped Nadella in making Microsoft a Trillian dollar company.

Resistance to change is normal within any organization. Resistance may occur at every stage
of the organization. People oppose change due to the worries about security and safety.
Various internal and external forces affect each organization in different ways.
Organizations can use various models, such as Kotter and Lewin to help implement change.

Email – hello@edutap.co.in, M - 8146207241 10 | P a g e http://www.edutap.co.in

 Organizational development can help start the transition between implementing change
and managing resistance from the employees.

Q.4) “Change is absolutely necessary; all resistance to change is bad”. Do you agree? (400
words, 10 Marks)
Approach

Introduction: Start with a quote on change and briefly explain, why change is necessary.

Body: Discuss the steps and management to achieve change by using Three-step model.

Conclusion: Conclude with by highlighting the importance of change.

Answer

"Change is inevitable, Progress is a choice"- Dean Lindsay

With the exponential growth of computer processing in this Information Age and its impact
on an ever evolving global economy, change is now the normal state of business. Despite
the presence of change all around us, organizational change does not come easy, however.
In fact, many organizations fail to make the changes that are necessary for their survival.

Change entails resistance. The relevant management task is to overcome resistance and
take steps to achieve the change. There are several approaches to managing change. We
shall here discuss certain change management approaches. The most common of all the
approaches stated in OB literature is Lewin's Three-Step Model.

Lewin, a social scientist, and a physicist, during early 1950s propounded a simple framework
for understanding the process of organizational change known as the Three-Stage Theory,
which he referred as Unfreeze, Change (Transition) and Freeze (Refreeze).

1. Unfreezing: This is the first stage of transition and one of the most critical stages in
the entire process of change management. It involves improving the readiness as
well as the willingness of people to change by fostering a realization for moving from
the existing comfort zone to a transformed situation. It involves making people
aware of the need for change and improving their motivation for accepting the new
ways of working for better results. During this stage, effective communication plays
a vital role in getting the desired support and involvement of the people in the
change process. Example: In 2018, the Supreme Court of India announced that all
automotive companies need to sell BS-6 compliant vehicles only, from 1stApril 2020.

Email – hello@edutap.co.in, M - 8146207241 11 | P a g e http://www.edutap.co.in

 As a result of this, Automobile companies were made aware of the need for change
and improving their technology for accepting the new ways of working for better
results.
2. Change: This stage can also be regarded as the stage of Transition or the stage of
actual implementation of change. It involves the acceptance of the new ways of
doing things. This is the stage in which the people are unfrozen, and the actual
change is implemented. During this stage, careful planning, effective communication
and encouraging the involvement of individuals for endorsing the change is
necessary. Example: Moving ahead with same example as above, As a result of the
announcement made by the Supreme Court of India, all automotive companies
started working on technologies to be used in the BS-6 compliant vehicles and
started selling their inventories of BS-4 vehicles.
3. Freeze (Refreezing): During this stage, the people move from the stage of transition
(change) to a much more stable state which we can regard as the state of
equilibrium. The stage of Refreezing is the ultimate stage in which people accept or
internalize the new ways of working or change, accept it as a part of their life and
establish new relationships. For strengthening and reinforcing the new behavior or
changes in the way of working, the employees should be rewarded, recognized, and
provided positive reinforcements, supporting policies or structures can help in
reinforcing the transformed ways of working. Example: Much before the deadline of
1st April 2020, companies started launching Bs-6 compliant vehicles and the process
becomes smooth and stable by 1st April and after the date, all the automotive
companies are launching only Bs-6 compliant vehicles only.

Organization members desist change. Resistance to change is a healthy response to change.

It is in fact positive in the sense that it makes employee behavior somewhat predictable and
stable. It is said that people do not resist change itself, rather they resist those aspects of
change which personally affect them such as fear of the unknown, status, communication,
etc. Resistance to change needs to be recognized and effectively managed in order to
embed change into the organization.

Q.5) What is the concept of organizational behavior modification? What are the
controversies surrounding the behaviour modification approach in practice? (400 words,
10 Marks)
Approach

Introduction: Define organizational behavior modification and ABC’s of behavior

modification.

Body: Explain application of organizational behavior modification in real life and also the

Email – hello@edutap.co.in, M - 8146207241 12 | P a g e http://www.edutap.co.in

 criticism associated with behavior modification.

Conclusion: Conclude it by explaining organizations shall use behavior modifications when

necessary.

Answer

Behavior modification, popularly known as OB MOD makes use of various reinforcements to

influence the behaviors of individuals. OB Mod is derived and developed from the work of
B.F. Skinner. This technique helps the managers in modifying or eliminating undesirable
behavior and replacing it with behavior that is more compatible with goal attainment.

The ABCs of Behavior Modification means, When we look at behavior modification it is

helpful to break it down into the ABCs where A = Antecedent, B = Behavior, and C =
Consequence. According B. F. Skinner, all behavior can be broken down into the three ABC
components. Ante means before. Antecedent occurs before the behavior and the
consequence occurs after the behavior.

Organizational Applications of Behavior Modification

1. Absenteeism and Tardiness: It is an area where behavior modification is applied.

Studies revealed that some combination of rewards (for example small monetary
bonuses or lottery incentive systems) for attendance or promptness and/or
punishers absenteeism or tardiness. Example: In Arkansas, North Little Rock School
board introduced an absenteeism reduction plan in which teachers can receive $300
after every six months with perfect attendance.
2. Safety and Accident Prevention: Most of the manufacturing firms and others, in
which dangerous equipments are used, are very concerned about safety and
interested in decreasing accidents. Application of reinforcements have led to
reduction of identifiable safety hazards and increasing safe behaviors among
employees. Example: Turner Corporation – a New York based engineering and
construction firm where employee can earn company stock if they meet safety go.
3. Sales Performance: Sales managers and trainers have traditionally relied on internal
motivation techniques to get their sales people to improve their sales performances.
The effective application of O.B. Mod techniques have been found in improving
selling behaviors such as customer’s approach, suggestive statements and closing
statements are identified, measured, analyzed, intervened and evaluated would be
an alternative to motivate skill teaching approach. Example: Walmart company
observed dramatic improvements, by using a combination of antecedent and
consequence intervention strategies, in areas of wine and dessert sales, customer

Email – hello@edutap.co.in, M - 8146207241 13 | P a g e http://www.edutap.co.in

 transactions, customer assistance, sales forecasting, sales call frequency, sales of
telephone services, etc.
4. Healthy Lifestyle: Lifestyle changes are behavior modifications or habit changes that
encourage positive changes in life. Example: Horton’s Group, the Chicago based
insurance broker rewards staff who take at least 7,000 steps each day. Health
insurance giant Humana introduced a similar program where data from pedometers
are uploaded to a website. The more steps one takes the higher the reward.

Criticism of OB Mod

1. The basic criticism against OB Mod is that it was developed after a series of
experiments with white rats. The critics suggest that this technique is an applied rat
morphism and tends to equate human beings with rats, but organizations are more
complex than Skinner’s boxes (it was skinner who tested with rats).
2. They ignore the individuality of person and constitute a threat to the concept of
personal autonomy. These techniques are employed by managers to manipulate and
control the human beings into another person’s concept of ideal person
3. OB Mod techniques restrict freedom of choice of behavior. This works against the
basic concept of creativity and innovation, which are required for successful working
of the organizations
4. OB Mod assumes that individual behavior is a function or is controlled by his
environment and that forces internal to the individual have little effect on behavior.
However, empirical evidence suggests that behavior is also a function of certain
cognitive and affective variables residing in the individual. It does not take care of
people’s perception, beliefs, needs and expectations.
5. The idea of changing employees’ behavior through reinforcement under OB Mod is
in conformity with the traditional thinking that people need to be directed to get the
work done. In the modern world, where the people are enlightened, and self-
motivated, this view cannot be accepted

In-spite of the criticisms levied against OB Mod, it has been increasingly used in business
organizations. It is being utilized as a practical tool for shaping, improving and motivating
behavior of organizational members. OB Mod should not be treated as a technique to be
applied indiscriminately as panacea for all organizational behavioral problems. Rather the
management should keep in mind its shortcomings and to apply it within the context of its
limitations and shortcomings.

Email – hello@edutap.co.in, M - 8146207241 14 | P a g e http://www.edutap.co.in

 15 Markers

Q.1) How Organizational Change differs from Organizational Development? Also explain
how Kurt Lewin helps in understanding the planned Organizational change in present
scenario. (600 words, 15 Marks)
Approach

Introduction: Define Organizational change and organizational development.

Body: Explain the differences between organizational change and organizational
development. Also, explain Kurt Lewin model on planned organizational change.
Conclusion: Conclude it with a drawback of Kurt Lewin’s model and how it fails to take
transformational change into consideration.

Answer

Organizational change refers to the actions in which a company or business alters a major
component of its organization, such as its culture, the underlying technologies or
infrastructure it uses to operate, or its internal processes. Whereas, Organizational
development is a planned effort for a workgroup and/or the organization, managed by
leadership and supported by employees, to increase organization effectiveness through
planned change in processes and systems.

Difference between Organizational Change and Organizational Development

1. Difference in Aim: Organizational Change focuses on moving from current status to

a better future status whereas Development focuses on one specific area of change
and facilitates it. Example: Jio recently announced to provide 5G services all across
India which is an Organizational change from existing 4G services but the
organization is providing training to its employees, testing the 5G services across
geographies and in a phase-wise manner which can be termed as organizational
development
2. Difference in terms of Focus Subjects: Organizational change mainly focuses on
change schedule, time, quality, and cost whereas Organizational development
focuses on developing and enhancing employee skills, knowledge, development and
behaviors for long term performance. Example: Microsoft was running into serious
internal problems with its organizational structure. Microsoft was struggling to keep
up with other companies — specifically, with Google becoming dominant in the
search and software market and Apple owning the phone market. As an immediate
solution, Organizational change that Microsoft did was by creating a new AI and
Research Group by merging their original research group with the Bing, Cortana, and

Email – hello@edutap.co.in, M - 8146207241 15 | P a g e http://www.edutap.co.in

 Information Platform teams. This move brought roughly 5,000 engineers and
computer scientists together to focus on artificial innovation across all Microsoft
product lines. However, as an Organizational development, Microsoft undertook a
major restructuring to eliminate its destructive internal competition. All employees
would start focusing on a limited set of common goals and bringing them all
together
3. Difference in terms of Change Agents: Organizational change agents are internal
consultants, managers, or selected executives. Examples of internal change agents
are corporate board members, CEOs, executives, managers, and others in an
organization’s workforce. On the other hand, Organizational development
consultants are mostly external consultants. Examples of external change agents
include investors, suppliers, community activists, government regulators and even
consumers.
4. Difference in terms of Planned or Not: Change can be a planned change or an
unplanned change. Planned changes are integrating new technology, process
changes, system change, etc. Unplanned changes are the economic condition,
changes in government policies, etc. whereas Organizational development is always
a well-planned action. Changing an organization is often essential for a company to
remain competitive. Failure to change may influence the ability of a company to
survive. But it is also important how change has been implemented. Hence Change is
important and more important is the change Management.

Kurt Lewin's planned Organizational change in the present scenario

Kurt Lewin’s Three Stages model or the Planned Approach to Organizational Change is one
of the cornerstone models which is relevant even in the present scenario. According to
Lewin, change for any individual or an organization is a complicated journey that involves
several stages of transitions or misunderstandings before attaining the stage of equilibrium
or stability. The process of organizational change comprises of following three stages,

Stage 1 - Unfreezing: This is the first stage of transition and one of the most critical stages
in the entire process of change management. It involves making people aware of the need
for change and improving their motivation for accepting the new ways of working for better
results. During this stage, effective communication plays a vital role in getting the desired
support and involvement of the people in the change process. Example: In 2018, the
Supreme Court of India announced that all automotive companies need to sell BS-6
compliant vehicles only, from 1st April 2020.

Stage 2 - Change: This stage can also be regarded as the stage of Transition or the stage of
the actual implementation of change. It involves the acceptance of new ways of doing
things. This is the stage in which the people are unfrozen, and the actual change is
implemented. Example: As a result of the announcement made by the Supreme Court of

Email – hello@edutap.co.in, M - 8146207241 16 | P a g e http://www.edutap.co.in

 India, all automotive companies started working on technologies to be used in the BS-6
compliant vehicles and started selling their inventories of BS-4 vehicles.

Stage 3 - Freeze (Refreezing): During this stage, the people move from the stage of
transition (change) to a much more stable state which we can regard as the state of
equilibrium. The stage of Refreezing is the ultimate stage in which people accept or
internalize the new ways of working or change, accept it as a part of their life and establish
new relationships. Example: Much before the deadline of 1st April 2020, companies started
launching Bs-6 compliant vehicles and the process becomes smooth and stable by 1st April
and after the date, all the automotive companies are launching only Bs-6 compliant vehicles
only.

As can be observed from above, this model supports a top-down approach to change
management and ignores the importance of the bottom-up approach in the change
management process. Moreover, Lewin’s Planned change model fails to take into
consideration the radical or transformational change and hence, it is only useful if the
incremental change is implemented in an organization.

Previous Year Questions – 2021 Onwards

Please be informed that in this section we will be discussing all the descriptive Previous Year
Questions (PYQs), all the questions appearing in this section has a tag of the year in which
that question was asked. If there is no question in this document on any exam from a
particular year or years, it means that no question was asked for that exam in that
year(s) or exam itself was not conducted in that year.

Q.1) What is Behavioural Reinforcement? Discuss the Positive and negative Behaviour
reinforcements in brief. RBI Grade B (Phase 2) - 2021 - (400 words, 10 marks)

Approach

Introduction: Start with a quote and then, Define Behavioural Reinforcement

Body: Discuss Positive and negative behaviour reinforcements with examples.

Conclusion: Conclude it with by highlighting the importance of behavioural reinforcement.

Answer

"Reinforcement is being right" - B.F. Skinner

Email – hello@edutap.co.in, M - 8146207241 17 | P a g e http://www.edutap.co.in

 Reinforcement can be defined as anything that increases the strength of response and
tends to induce repetitions of the behavior that preceded the reinforcement.

Learning Depends on Reinforcement. Without reinforcement, no measurable modification

occurs in behavior. Out of various responses made to same situation, the one which are
accompanies by satisfaction (positive reinforcement) will be more likely to be repeated.
Example: When a dog jumps, he will be given a biscuit, this will make him repeat this
behavior since he got a reward for doing that. Over the time this behavior will get
entrenched in his daily routine or in other words he will get conditioned to such a behavior.

There are various type of reinforcement that are used in learning. These may be either
positive or negative, extrinsic, or intrinsic, primary, or secondary. We shall discuss about
positive and negative reinforcement.

Positive Reinforcement: This implies giving a positive response when an individual show
positive and required behavior. Example: In the world of advertising and marketing,
positive reinforcement can be as simple as providing excellent customer service to
customers in need. Listening to the customer and paying attention to their problems works
as a positive stimulus. Apple is the brainchild of the man who epitomized excellent
customer service, Steve Jobs. Continuing his legacy, Tim Cook is leaving no stone unturned
to ensure his customers remain loyal. Apple even operates a personalized support portal
where you can view every Apple product you have ever bought and receive support for the
same. In the future, that’ll encourage existing customers to buy more products and services
from the Apple

Negative Reinforcement: This implies rewarding an employee by removing negative or

undesirable consequences. Both positive and negative reinforcement can be used for
increasing desirable or required behavior. Example: A company has policy of transferring
the employees every 2 years and employees do not like being transferred. If such a
company gives the option to top performers of not being transferred, then such a thing
would act as negative reinforcer where negative consequence is decreased and hence
behavior is reinforced. Negative reinforcement can be of two types.

1. First one is Escape where people engage into behavior to remove the bad outcome.
For example, you come to know that you are about to be fired but you go and
present some gifts to your boss making him happy and as a result you are not fired.
So, you have taken an action that has helped you escape the situation
2. Second one is Active Avoidance where in you engage into a behavior to avoid bad
outcome. Suppose you study for the exam to avoid bad grades is an example of
Active Avoidance.

The behavior reinforcement revolves around a basic idea that consequences influence
behavior. Consequence that brings rewards propels a particular behavior and consequences

Email – hello@edutap.co.in, M - 8146207241 18 | P a g e http://www.edutap.co.in

 that give punishment diminish the occurrences of a behavior. Last but not the least, the
consequences that give neither reward nor punishment put an end to a behavior. It helps
the mangers to choose the right method of motivation to motivate their employees basing
upon the prevailing situation.

Question 2 - People and organization are resistant to change. Describe measures to

eradicate it. RBI Grade B (Phase 2) - 2022 - (600 words, 15 marks)

Approach

Introduction: Start with the basic meaning of change and then like your introduction part of
the answer with body part, by giving appropriate example.

Body: Address the main demand of the question, by explaining the ways via which
resistance to change can be removed.

Conclusion: Conclude it with, resistance to change is normal in an organization and it can be

overcome by using different models and strategies.

Answer

It a very old adage that, “People don't resist change, they resist being changed" as cited by
Peter Senge

Change is constant and unavoidable. However, human behavior has repeatedly shown a
resistance to change in the existing methods and ways of doing work. Organizations for the
advancement of business processes, require constant adaptation to changes. However,
organizational resistance to change acts as a major hindrance in the path of development
and success of an organization. Such resistance to organizational change brings in the need
for defined change management. Example: Several BSNL central trade unions observed, All
India Protest to oppose the announcement regarding privatization of BSNL.

According to Kotter and Schlesinger (1979) proposed six crucial techniques for overcoming
the resistance to change.

A - Education and Communication: One of the easiest techniques to overcome resistance

to change is to educate people, train them adopt change, counsel them, and communicate
then the various stages of change. Management can change the attitude of people by
training and psychological counselling. This type of effort helps people to visualize the need
and logic of the change, they will appreciate it in a much better way and will accept it easily.

Email – hello@edutap.co.in, M - 8146207241 19 | P a g e http://www.edutap.co.in

 B - Participation and Involvement: People who are resisting change may be involved in
some aspect of design and implementation of change so that they do not block the change
and treat change as their own effort. For Example: TATA motors facing huge losses, decided
to bring in organizational changes which needed a lot of restructuring within the
organization and in order to prevent the resistance to change, Action Planning Workshops
and team-level interventions to enhance engagement with employees was done.
Parivartan, an online listening post was created for employees to share their comments,
feedback, and suggestions on the existing system as well as the new system to be
conceptualized to make them a part of organizational change.

C - Agreement & Negotiation: This technique is effective when it involves exchanging

something valuable for reducing the resistance towards the change. This is one of the most
convenient techniques for avoiding any kind of major resistance. For Example: In order to
exist in the market, long competitors Vodafone and Idea merged keeping aside their conflict
of interest so that they can compete with the telecom giant like Jio and Airtel. Moreover,
the transformation was easy as both the entities came into an agreement after a well
thought out negotiation even after facing small resistance from a few sections of employee
opposed to the merger.

D - Co-optation & Manipulation: This technique involves getting the support, persuading or
influencing the employees in favor of the change. Manipulation involves covert attempts
from the managers by withholding painful information, twisting or distortion of the
information for making it more appealing for the staff members or spreading false rumors
across the organization in order to compel the employees to accept the change
manipulatively.

E - Coercion (Explicit & Implicit): It is a technique of persuading someone to do something

by using force or threats. Example: Thoothukudi Massacre denotes events that took place
on 22 and 23 May 2018 in Thoothukudi, Tamil Nadu, India. Sterlite Corporation in
Thoothukudi town, was facing a resistance against the proposed expansion of its copper
smelter plant due to environmental concerns. In order to overcome the resistance, Police
opened fire on the protesters, killed 13 people and left 102 injured. Thus, coercion should
be avoided in all the possible situation and if required must be used only as the last possible
resort.

F - Leadership: It is the process of influencing and supporting others to work willingly to

bring the intended results. After being named CEO of Microsoft in February 2014, Satya
Nadella undertook a major restructuring of the tech giant to eliminate its destructive
internal competition. He regularly sent genuine and emotional email to employees that
gained him trust and aroused commitment from employees. Nadella started holding a
monthly "ask me anything" session with employees where he transparently discusses

Email – hello@edutap.co.in, M - 8146207241 20 | P a g e http://www.edutap.co.in

 issues, answers their questions, and eases their concerns. All this helped Nadella in making
Microsoft a Trillian dollar company.

Resistance to change is normal within any organization. Resistance may occur at every stage
of the organization. People oppose change due to the worries about security and safety.
Various internal and external forces affect each organization in different ways.
Organizations can use various models, such as Kotter and Lewin to help implement change.
Organizational development can help start the transition between implementing change
and managing resistance from the employees.

Previous Year Question- 2007-2014

The marks for these questions are not mentioned because before 2015, the pattern was
different. The questions were not of 10 marks or 15 marks. The year is also not mentioned
since they are all very old papers, and the year is of not much relevance to us.

Q.1) Explain the steps involved in the implementation of change in an organization. What
are the factors that create resistance?
Approach

Introduction: Start with a quote on change, and then define organizational change.

Body: Explain the steps involved in the implementation of change in an organization and
also discuss the factors that resist change

Conclusion: Conclude it with, resistance to change is normal in an organization and it can be

overcome by using different models and strategies.

Answer

"The only thing that is constant is change" - Heraclitus

The term change refers to alteration in a system whether physical, biological, or social.
Organization change is defined as “any alteration in one or more elements of the
organization”. Changes can be made in any of the following: work schedules, basis for
departmentation, span of management, overall organization design, or people themselves.

Steps involved in the implementation of change in an organization

A major organizational change requires considerable planning. The change is successful, if it

is taken in planned way which proceeds in a sequential form.

Email – hello@edutap.co.in, M - 8146207241 21 | P a g e http://www.edutap.co.in

 1. Identifying need for change: The first basic step is need for identifying need for
change. For example, the entry of new competitor may trigger the need for change.
The change must be driven by some trigger in the environment or in form of some
internal parameter such as poor organizational performance, new strategic thrust,
etc
2. Elements to be changed: This step will further analyze the problem and try to come
up with elements that need to be changed. By elements here we mean – Structure,
task, people, and technology.
3. Planning the change: Planning for change basically means deciding on who will bring
the change, when to bring the change and how to bring the change.
4. Assessing change forces: In an organization there would always be some forces in
favor of the change and some forces opposing the change to maintain equilibrium.
This has been referred to as ‘field of forces’ by Kurt Lewin. Field of forces states that
in any situation, there are both driving and restraining forces which influence any
change that may occur. Driving forces are those which affect a situation by pushing it
in a particular direction; they tend to initiate a change and keep it going. Restraining
forces act to restraint change or to decrease the driving forces. Equilibrium is
reached when some of driving forces equals sum of restringing forces. Management
must push the driving forces or convert restraining forces into driving forces by
creating proper environment so that people accept the change.
5. Actions for Change: According to Lewin, change for any individual or an organization
is a complicated journey which involves several stages of transitions, such as
Unfreezing, Changing, and Refreezing.

Factors that create resistance to change

As the management contemplates and initiates change in the organization, one

phenomenon that is quietly to emerge in change effort is resistance to change. Resistance
to change may come from individuals as well as from the organization itself. However, in
both cases, factors may be different. Thus, various factors responsible for resistance to
change can be identified in the context of individual and organizational factors.

Individual Factors

1. Problem of Adjustment: When equilibrium is disturbed, we react negatively. Change

makes us leave our comfort zone and therefore it presents various difficulties due to
which we react negatively to change. For example, Privatization of Railways is
always resisted by the employees because they feel that privatization will lead to a
different kind of work culture in which they may not be able to survive.
2. Economic Reasons: People resist change if they feel it would hit them economically
like reduced salary, delayed promotion etc. Higher the amount of loss, higher is the
degree of resistance. For example, automation may replace many workers and they

Email – hello@edutap.co.in, M - 8146207241 22 | P a g e http://www.edutap.co.in

 will be put out of employment if no alternative employment is provided by the
organization. This kind of automation will face resistance.
3. Obsolescence of Skills: Due to change some skills might become obsolete, therefore
triggering a fear of job loss. Thus, people who possess old skills will resist such
change. For example, many people in IT industry who were experts in mainframes
advised their managers not to go for big data-based technologies as they feared that
their skills will become obsolete due to migration towards big data.
4. Emotional Factors: Sometimes people react emotionally to change because of their
feelings, emotions, and attitudes. Thus, many factors will produce resistance to
change like fear of unknown, ego defensiveness, etc
5. Habit: We rely on habits or programmed responses. But when confronted with
change, this tendency to respond in our accustomed ways becomes a source of
resistance.

Organizational Factors

1. Threat to power and Influence: When people at the top consider change as
potential threat to their position and influence, they resist it. A change is likely to be
incorporated successfully if it has the blessing of top management
2. Resource Constraints: Sometimes change is resisted because of lack of resources.
Each change requires some additional resources, so if organization is less on
resources, it will not be inclined to go for the change.
3. Sunk Costs: Organization may also resist change because they have invested in fixed
assets. When change is incorporated, these assets become useless. Organization
might not be ready to discard such high-value assets. This may be true for human
resources. For example, change may result in obsolescence of skills of persons.
However, an organization will have to bear the costs because it cannot dispense with
these persons. Thus, the organization would like to continue with the old system.
4. Structural Inertia: We rely on habits or programmed responses. But when
confronted with change, this tendency to respond in our accustomed ways becomes
a source of resistance

Resistance to change is normal within any organization. Resistance may occur at every stage
of the organization. People oppose change due to the worries about security and safety.
Various internal and external forces affect each organization in different ways.
Organizations can use various models, such as Kotter and Lewin to help implement change.
Organizational development can help start the transition between implementing change
and managing resistance from the employees.

Email – hello@edutap.co.in, M - 8146207241 23 | P a g e http://www.edutap.co.in

 Homework Question
Q1) Explain Briefly: (400 words, 10 Marks)

I. Action research model

II. Positive model

Email – hello@edutap.co.in, M - 8146207241 24 | P a g e http://www.edutap.co.in

Email – hello@edutap.co.in, M - 8146207241 1|P a g e http://www.edutap.co.in
Email – hello@edutap.co.in, M - 8146207241 2|P a g e http://www.edutap.co.in
 Introduction
This document consists of 4 sections

1) 10 Marker Questions: In this part we shall be giving you 10 marker questions.

These are supposed to be somewhat direct and easy as compared to 15 marker
questions

2) 15 Marker Questions: In this part we shall be giving you 15 marker questions.

These are supposed to be little complex or consisting of multiple sub questions or
may be an integrated question from concepts of different chapters

3) Previous Year Descriptive Questions: The previous year descriptive questions are
subdivided into two sections
a. 2021 Onwards: We shall cover all previous year questions asked in the exam
from 2021 onwards
b. 2007-2014: We shall cover all relevant previous year questions asked in the
exam between 2007-2014
I. Some questions from previous years might not be covered in any of the
chapter since they might not belong to current syllabus. The syllabus
earlier was different from the current syllabus.
II. Some questions from previous years might not be covered as they are
related to current affairs of that year which is not relevant now.
III. Moreover, some chapters have lot of previous year questions, in those
chapters we have given complete answers to some questions and for the
rest of the questions, the answer outline is given
c. The exam was conducted in objective pattern between 2015 and 2020. For
these years no subjective questions is there

4) Homework Question: There is one homework question for you to think and write.
The answer for this question will not be given by us.

Email – hello@edutap.co.in, M - 8146207241 3|P a g e http://www.edutap.co.in

 Other Guidelines

1. The answers given here are not to be crammed. They are not given from the
perspective of being perfect answers. No answer is a prefect answer. If we ask
500 people to write answers to these questions, then we will get 500 different
answers and we cannot decide which one is perfect answer. The answers given
here is to help you guide towards the approach to answer writing

2. The answers written here may exceed the word limit in some cases. But that is
done intentionally, so that you understand it better and in exam you can
further summarize that information to achieve the desired word-limit.

3. In certain answers, the content/points written may not be covered in the

notes/videos. But that is also done to make you realize that we cannot simply
be bookish in writing answers, rather some content/points need to be written
from our understanding of things. This is called the application part

4. We would recommend that questions to the answers should not be just read.
What you shall do is
a. For 2-3 questions, please write answer in your own words so that you get
practice for descriptive writing. Then try to match your answer with
answer given by us and try to self-evaluate
b. For the rest of the questions, try to make an outline as in what you will
write in this answer. Then try to match your outline with answer given by
us and try to self-evaluate

5. Please refer the videos on “Science and Art of Descriptive Writing” that have
been included earlier in the course. Those videos shall be watched again and
again to get better hold on answer writing

Email – hello@edutap.co.in, M - 8146207241 4|P a g e http://www.edutap.co.in

 10 Markers
Q.1) What are the factors affecting Corporate Governance? (400 words, 10 Marks)

Approach

Introduction: Start with a quote and then define Corporate Governance.

Body: Discuss the factors affecting corporate governance with examples.

Conclusion: Highlight the importance of good corporate governance needed for an

organization.

Answer

“Corporate Governance should be done more through principles than rules”

Corporate governance broadly refers to the mechanisms, processes and relations by which
corporations are controlled and directed. Corporate governance includes the processes
through which corporations' objectives are set and pursued in the context of the social,
regulatory and market environment.

Corporate Governance is a dynamic practice consisting of internal control provisions and

procedures to manage a company. It affects and gets affected by a number of factors
highlighted below,

1. Ownership Structure: Ownership structure has a major role to play in corporate

governance. If the Ownership is concentrated in few hands, then dominant
shareholders would be able to take decisions at their will. Example: Till 2014, all the
oil companies were used to provide diesel and petrol at a regulated price mechanism
as per the decision of majority stakeholder i.e., the Government of India. This
decision of majority stakeholder not only affecting the financial positions of these
companies but also affecting the minority stakeholder.
2. Financial Structure: The financial structure will have implications on the corporate
governance. If company is more equity than debt, then all the decisions would have
to be taken by consulting shareholders which is good. But in case of large debt and
low equity it might be possible for board to take decisions in their interest and
debtors might not like those decisions. Example: Kingfisher Airlines, KLA, was
another corporate fraud, which was first of its kind in the Airlines industry, which
ultimately led to fall of the empire of King of good times. The company resorted to

Email – hello@edutap.co.in, M - 8146207241 5|P a g e http://www.edutap.co.in

 borrowing funds by all possible means, including related parties and pledge of
Kingfisher brand by over-valuation of brand value. This changed the financial
structure of the company and given the chance to promoter to siphon off 9000crore
of public sector lenders.
3. Competency of Board of Directors: If board of directors does not understand the
business then they will not be able to fulfill their duties to the extent required. In
such a case management would be able to take decisions in their own interest rather
than in the interest of the shareholders. Example: Yahoo's board got rid of Terry
Semel and drafted co-founder Jerry Yang to turn around the Internet portal even
though he'd never run a company before. Moreover, Yahoo Inc rejected Microsoft
Corp's unsolicited $41.6 billion takeover offer. Had Yahoo board have taken right
decision, it could have been the world’s most valuable company by now.
4. Board independence: An independent board acts as watchdog for the company’s
policies, decisions, and performance. They act in the interest of the company and
the interest of all stakeholders. In absence of Independence of Board, Management
may engage in malpractices. Example: Cyrus Mistry who was dismissed as Tata Sons
chairman by its board, alleged lack of corporate governance and failure on the part
independence of directors. Mistry alleged that Ratan Tata regards Tata group as a
fiefdom, and Independent Directors aren’t truly independent and assertive. Mistry’s
suggested that despite making losses of Rs1000 crore, Tata’s low-cost Nano has not
been shut down due to emotional reasons.
5. Role of Government and Regulatory Authorities: Government and regulatory
authorities play an especially important role in framing rules and regulations to
enforce corporate governance. Example: After a continuous chase by Market
regulator SEBI, Unlisted conglomerate Sahara, one of India’s biggest business groups
was ordered by the Supreme Court of India to refund 174 billion rupees raised by
dubious means from 22 million small investors.
6. Transparency: Transparency is necessary for good corporate governance. Every
company should ensure that it distributes every information to shareholders which
is relevant to them on time and should be complete. Example: The high-profile
corporate governance failure scams like the stock market scam, the UTI scam, Ketan
Parikh scam, Satyam scam, which were severely criticized by the shareholders, called
for a need to make corporate governance in India transparent.

The collapse of international giants likes Enron, World Com of the US and Xerox of Japan are
said to be due to the absence of good corporate governance and corrupt practices adopted
by management of these companies and their financial consulting firms. The failures of
these multinational giants bring out the importance of good corporate governance along
with the factors affecting it.

Email – hello@edutap.co.in, M - 8146207241 6|P a g e http://www.edutap.co.in

 Q.2) Has excessive profit seeking by corporates undermined the trust of public in the
private sector? Giving examples, examine the reasons for failure of corporate governance
in India. (400 words, 10 Marks)

Approach

Introduction: Briefly discuss the reason for excessive profits seeking by private sectors with
example.

Body: Explain the reasons for failure of corporate governance in India with examples
wherever required.

Conclusion: Conclude that private sector shall follow principles of corporate governance for
the welfare of stakeholders involved.

Answer

Private sector is largely driven by ‘profits’, which are important for sustainability of business
operations. However, with increasing instances of corporate frauds and crony capitalism,
questions have been raised on the mode of operations of the private sector. It has also
been argued that such illegal and unethical practices are traceable to the want of excess
profits.

Manifestations of such practices include the Satyam scam, Enron Scandal, Financial Crises of
2008 whereby the public was misled for generating excess profits.

Many see the private sector being driven by self-interest without adequately acknowledging
the interest all stakeholders, especially consumers. India’s telecom sector is an example.
While Jio’s penetration has increased significantly over the years with extremely
competitive tariffs, the quality of service has left much to be desired with rising instances of
call drops.

This has meant that it is the consumers or the larger public which are at the receiving end.
Therefore, while profits are an important factor, it is the race for excessive profits and the
corresponding practices to earn those that has undermined the trust of the public in the
private sector.

Reasons for the failure of corporate governance in India

Email – hello@edutap.co.in, M - 8146207241 7|P a g e http://www.edutap.co.in

 1. Most corporate governance abuses in India arise due to conflict between the
majority and minority shareholders. In India, boards are not as empowered as in
several western economies and since the board is subordinate to the shareholders,
the will of the majority shareholders prevails. Example: Till 2014, Government being
the largest shareholder in Oil companies used to regulate the Petrol and Diesel
prices, the consequences of which were being born by the Oil companies.
2. There is still a lack of awareness about various issues pertaining to corporate
governance, like, quality and frequency of financial and managerial disclosure,
compliance with the code of best practice, roles and responsibilities of Board of
Directors, shareholders rights, etc.
3. Collusion between companies and their accounting firms, non-compliance with
standards, etc. Example: IL&FS had defaulted on its debt obligations, triggering a
liquidity crisis in the financial services market. IL&FS and its subsidiaries owe ₹99,354
crore. The auditors, especially the “big three"—EY, Deloitte and KPMG—are in the
dock. Probe agencies are probing the role of auditors that how they missed such a
large misappropriation of funds by the management.
4. In India, family businesses constitute an important portion of corporate setup.
Family control also brings governance problems –which includes lack of checks and
balances over executive decision-making and behavior, and a lack of transparent
reporting to the outside world.
5. The issues of enforcement of corporate governance norms also leave much to be
desired. There have been instances of substantial delay in the delivery of justice by
Indian legal system. Example: After a continuous and long chase of over 6 years by
Market regulator SEBI, Unlisted conglomerate Sahara, one of India’s biggest business
groups was ordered by the Supreme Court of India to refund 174 billion rupees
raised by dubious means from 22 million small investors.

Corporate governance is perhaps one of the most important differentiators of a business

that has impact on the profitability, growth and even sustainability of business. Sound
corporate governance is, therefore, crucial for sustained and robust growth which enhances
the confidence of not just the investors but the larger public as well. Therefore, there is a
need for establishing clear principles of corporate governance keeping in mind the welfare
of all the stakeholders. This becomes important as there is greater involvement of private
sector in delivering essential services.

Q.3) What are the ethical issues with Corporate Governance in India? Also, discuss the
importance of ethically based corporate governance. (400 words, 10 Marks)
Approach

Introduction: Define Corporate Governance.

Email – hello@edutap.co.in, M - 8146207241 8|P a g e http://www.edutap.co.in

 Body: Discuss the ethical issues with corporate governance and also explain the importance
of ethically based corporate governance.
Conclusion: Conclude it by highlighting the importance of ethically based corporate
governance for an organization.

Answer

Corporate governance refers to the way a corporation is governed and managed. The
Organization for Economic Co-operation and Development (OECD) defines corporate
governance as ‘procedures and processes according to which an organization is directed
and controlled’. Negligence of business ethics in corporate governance is a responsible
factor for the failure of corporate. There have been many instances of failure and scams in
the corporate sector in India due to the absence of good corporate governance.

Ethical issues with Corporate Governance in India

1. Concentration of powers: Ownership of corporations in India, is still held in a few

hands. A single shareholder or family controls a large group of companies. This leads
to several governance related challenges and has often led to poor decision making
that harms company’s profits.
2. Conflict of Interest: The challenge of managers potentially enriching themselves at
the cost of shareholders. Example: Recent case of former ICICI head Chanda Kochhar
approved a loan to Videocon for quid pro quo deal for her husband.
3. Board directors: Independent directors were supposed to be the biggest corporate
governance reform. However, they have hardly been able to make the desired
impact due to the passive role played by them on board. The frequent removal of
directors by promoters of the company is an issue. This has not been addressed
effectively yet, despite the strengthening of the regulations regarding independent
directors. Example: Yahoo's board got rid of Terry Semel and drafted co-founder
Jerry Yang to turn around the Internet portal even though he'd never run a company
before. Moreover, Yahoo Inc rejected Microsoft Corp's unsolicited $41.6 billion
takeover offer. Had Yahoo board have taken right decision, it could have been the
world’s most valuable company by now.
4. Insider Trading: Corporate insiders like officers, directors and employees by the
virtue of their position have access to confidential information. Many
misappropriate that information to reap profits. SEBI lacks the thorough
investigative mechanism and a vigilant approach due to which the culprits are able
to escape. In most of the cases, SEBI failed to produce evidence and corroborate its
stance before the court. Example: According to Corporate Governance Survey 2020

Email – hello@edutap.co.in, M - 8146207241 9|P a g e http://www.edutap.co.in

 by Local Circles, Top three concerns of individual shareholders of publicly traded
companies are accounting fraud, selling of company assets without shareholder
knowledge and insider trading. 82% individual shareholders believe insider trading is
prevalent is in publicly traded companies in India and 66% individual shareholders
believe insider trading in public companies takes place through
friends/family/agents of the beneficiary.
5. Noncompliance with disclosure norms: Noncompliance with disclosure norms is
common in Indian businesses with hardly any punitive action. While the Companies
Act provides clear instructions for maintaining and updating registers, in reality
minority shareholders have often suffered from irregularities in share transfers.
Example: In order to ensure effective enforcement of continuous disclosure
obligations by issuers of listed debt securities, SEBI came out with uniform structure
for imposing fines for non-compliance with disclosure requirements. The fine
ranging from ₹1,000-50,000 per day could be levied for non-compliance with
disclosure norms related to payment obligations, non-submission of deviations in
utilization of issue proceeds, and failure to obtain prior approval of the bourses for
any structural change.

Importance of ethically-based corporate governance:

1. Profits: Ethical Corporate Governance helps in growing the reputation of a company

and thus, increase the profits. It leads to better relationships among stakeholders
that enhances performance of organizations.
2. Investment: Robust governance practices are imperative for companies to create
positive sentiment in the minds of investors and the public at large. An ethnically
based corporate governance leads to more trust in the organization and its work
culture leading to more investors’ interest.
3. Employee’s motivation: Good corporate ethics improves the situations of the
employee. It leads to higher retention and better morale. It also leads to a more
effective recruitment process, loyalty, motivation, and productivity in the company.
4. Customer relationships: Customer relationships are also improved. Ethical
governance increases customer loyalty, enhances brand image, and cater to
customers service and satisfaction. With ethical business practices, complaints and
issues of customers are solved transparently leading to trust in the corporation.
5. Business performance: Good corporate ethics also enhances overall business
performance, particularly leading to improved competitive advantage through good
governance, higher financial returns, and better reputation.

Corporate governance is very essential for overall growth of the companies. Ethical culture
can be regarded as the insurance for successful business. So for good corporate governance
ethics is essential. It is every company’s moral duty to implement the ethical codes in their
business.

Email – hello@edutap.co.in, M - 8146207241 10 | P a g e http://www.edutap.co.in

 15 Markers
Q.1) What are the various mechanisms of Corporate Governance? (600 words, 15 Marks)
Approach

Introduction: Briefly explain the need of various mechanisms of corporate governance.

Body: Discuss the internal and external mechanisms of corporate governance with examples
wherever required.

Conclusion: Conclude it with, how we can achieve good corporate governance by using
various mechanisms.

Answer

A certain set of authorities and responsibilities which have an influential power on

management decisions and eliminates the managers’ discretionary space is termed as
corporate governance mechanisms.

These mechanisms act as a controlling tool for creating a balance between principals and
agents cost and further ensures in safeguarding the interests of stakeholders.

Various mechanisms of Corporate Governance

Basically, two types of mechanisms, internal and external, revolve around the corporate
governance depending upon the influence and relative importance of these tools. The
mechanisms are as following,

Internal mechanisms are the ways and methods used by the firms which help the
management in enhancing the value of shareholders. The constituents of internal
mechanisms include,

1. Monitoring by Board of Directors

Board of directors are legally accountable for the decisions they make on behalf of their
firm and therefore monitor and control the corporate governance of the company.
Example: The board exercise control through monitoring and reviewing corporate strategy,
major plans of action, risk policy, annual budgets and business plans, corporate
performance etc.

Email – hello@edutap.co.in, M - 8146207241 11 | P a g e http://www.edutap.co.in

 2. Board Committees:

The different board Committees, which audits the members of the Board of Directors for
the execution of their duties, receives audit reports from the Accounting Auditor, also act as
an internal control mechanism. Moreover, people with no special relationship with the
company and who are highly independent are appointed as members of these committees
to enhance the supervisory function of the company’s business management, and its
transparency and objectivity. Example: committee for Auditing, Nomination &
Remuneration Committee and Risk Management Committee.

3. Internal audits and robust policies

Regular internal audits carried out by auditors employed by the organization in order to
assess the health of governance processes, operational health and financial reporting also
act as an internal control mechanism.

Robust internal control policies should also be implemented to ensure that the company
lives up to its obligations to investors, stakeholders, employees, the environment, the
government and the public at large. Example: IL&FS had defaulted on its debt obligations,
triggering a liquidity crisis in the financial services market. IL&FS and its subsidiaries owe
₹99,354 crore. The auditors, especially the “big three"—EY, Deloitte and KPMG—are in the
dock. Probe agencies are probing the role of auditors that how they missed such a large
misappropriation of funds by the management.

4. Proper Balance of power:

A separation of powers and responsibilities between management groups ensures that

there’s a proper system of checks and balances is in place, with one group implementing
policies and another ensuring that these are implemented and functioning in the right
manner. For example, President be a different person from the Treasurer.

5. Monitoring by large shareholders and other stakeholders

Individuals and institutions that have large shareholdings (and financial institutions such as
banks who are creditors) have the right to monitor the performance of the management,
acting as an effective internal control measure. Moreover, Small Shareholders too have a
voice in the organization through a representative in the Board of director.

Sometimes internal mechanism lacks in itself while performing the best for the company.
This time external factors play a vital role in controlling the corporate governance
mechanism of the business firm. The constituents of external governance mechanism
include,

Email – hello@edutap.co.in, M - 8146207241 12 | P a g e http://www.edutap.co.in

 1. The Financial Market:

Stock market plays a significant role in firm’s ups and downs. A well-developed financial
market act as a place where companies with bad corporate governance can be overtaken by
better companies. This results in replacement of bad managers. So, in this way bad
corporate governance is punished. Example: Tata Steel has acquired Bhushan Steel (BSL)
through its wholly owned subsidiary Bamnipal Steel Ltd (BNL) through a resolution under
the Insolvency and Bankruptcy Code (IBC).

2. The Market of Goods and Services

Competition is another factor which acts as an external control mechanism for the business
firm. If the society does not like the products and services offered by a business firm, then it
becomes natural that their business starts declining and further it may lead to a reduction
in the profit’s ratio of the business firm. Thus, company needs to adopt timely researchers
and survey in order to tap the resources in accordance with the market requirements.
Example: Reliance Jio has shaken up India’s telecom industry with its cheap services and to
stay in competition Idea and Vodafone merged in order to tap the resources in accordance
with the market requirements.

3. Monitoring and Enforcement Agencies

No matter how much the regulations and laws are made, there will always be defaulters.
We as humans has a tendency of not complying with the regulations till the time, they are
enforced through implementing agencies which instill fear of being exposed. Example:
Government of India has set up the Serious Fraud Investigation Office (SFIO) in the Ministry
of Company Affairs (MCA) with an objective to undertake the investigations under the
provisions of the Companies Act, 1956 for corporate frauds.

4. Media and Society Pressure

Any wrongdoing is highlighted in media and prevent people from indulging in wrong
practices. Society can make sure that bad corporate governance is badly rejected through
rejection of the products of that group, people resigning from jobs of that company etc.
Sucheta Dalal had exposed Harshad Mehta's 1992 Securities scam amounting up to Rs 1000
crore. Mehta was considered superstar of the Indian stock market until the journalist shone
light on his scams and was eventually banished from the stock market.

Corporate governance is an inevitable topic for companies nowadays. Investors are more
aware of the governance significance on the firms’ performance. A good corporate
governance not only builds up stakeholders’ confidence and helps them in keeping their
interests safe but also helps in enhancing the economic progress of the country as well.

Email – hello@edutap.co.in, M - 8146207241 13 | P a g e http://www.edutap.co.in

 Previous Year Questions – 2021 Onwards
Please be informed that in this section we will be discussing all the descriptive Previous Year
Questions (PYQs), all the questions appearing in this section has a tag of the year in which
that question was asked. If there is no question in this document on any exam from a
particular year or years, it means that no question was asked for that exam in that
year(s) or exam itself was not conducted in that year.

Q.1) What is Corporate Governance? Define its need and Principles. RBI Grade B (Phase 2)
- 2021 - (400 words, 10 marks)

Approach

Introduction: Define corporate governance with an example.

Body: Explain the need and principles of corporate governance with examples wherever
required.

Conclusion: Conclude with by highlighting the fact, Why good corporate governance
essential for an organization.

Answer

Corporate governance broadly refers to the mechanisms, processes and relations by which
corporations are controlled and directed. Corporate governance includes the processes
through which corporations' objectives are set and pursued in the context of the social,
regulatory and market environment. Example: Infosys topped a poll on best practices in
corporate governance conducted by Asia money. Infosys ranked 1, across categories of
‘disclosure and transparency, responsibilities of management and the board of directors,
and shareholders' rights and equitable treatment' for the FY 2020.

Corporate governance is needed for the following reasons,

1. Separation of Ownership from Management: A company is run by its managers.

Corporate governance ensures that managers work in the best interests of corporate
owners (shareholders).

2. Global Capital: In today’s global world, global capital flows in markets which are well
regulated and have high standards of efficiency and transparency. Good corporate
governance gains credibility and trust of global market players.

Email – hello@edutap.co.in, M - 8146207241 14 | P a g e http://www.edutap.co.in

 3. Investor Protection: Investors are educated and enlightened of their rights. They want
their rights to be protected by companies in which they have invested money. Corporate
governance is an important tool that protects investors’ interests by improving efficiency of
corporate enterprises.

4. Foreign Investments: Significant foreign institutional investment is taking place in India.

These investors expect companies to adopt globally acceptable practices of corporate
governance and well-developed capital markets. Demanding International Standards of
corporate governance and greater professionalism in management of Indian corporates
substantiates the need for good corporate governance.

5. Financial Reporting and Accountability: Good corporate governance ensures sound,

transparent and credible financial reporting and accountability to investors and lenders so
that funds can be raised from capital markets.

6. Banks and Financial Institutions: Banks and financial institutions give financial assistance
to companies. They are interested in financial soundness of companies financed by them.
This can be done through good corporate governance.

7. Globalization of Economy: The economy today is globalized. Integration of India with the
world economy demands that Indian industries should conform to the standards of
international rules. Corporate governance helps in doing this.

Principles of Corporate Governance

1. Rights and equitable treatment of shareholders: Organizations should respect the

rights of shareholders and help shareholders to exercise those rights. They can help
shareholders exercise their rights by openly and effectively communicating
information and by encouraging shareholders to participate in general meetings.
Example: Normally 51% (majority shareholders) of the shareholders need to vote in
favor for any decision to be taken. But recently there has been a voice which says
that sometimes the rest of the 49% (minority shareholders) which may be small
investors are badly affected by the decision. Hence people have started demanding
even among the minority shareholders the voting should be done separately and
51% of the remaining 49% should vote in favor for decision to be taken. Many
companies are doing this as part of corporate governance. This problem where
management tries to take decision which might not be in favor of shareholders is an
example principal-agent problem.

Email – hello@edutap.co.in, M - 8146207241 15 | P a g e http://www.edutap.co.in

 2. Interests of other stakeholders: Organizations should recognize that they have legal,
contractual, social, and market driven obligations to non-shareholder stakeholders,
including employees, investors, creditors, suppliers, local communities, customers,
and policy makers. Example: Some companies have made Corporate Social
Responsibility as part of their Corporate Governance. So, they are thinking in interest
of local communities.
3. Role and responsibilities of the board: The board needs sufficient relevant skills and
understanding to review and challenge management performance. It also needs
adequate size and appropriate levels of independence and commitment.
4. Integrity and ethical behavior: Integrity should be a fundamental requirement in
choosing corporate officers and board members. Organizations should develop a
code of conduct for their directors and executives that promotes ethical and
responsible decision making. Example: Many companies have implemented policies
on sexual harassment as part of corporate governance.
5. Disclosure and transparency: Organizations should clarify and make publicly known
the roles and responsibilities of board and management to provide stakeholders
with a level of accountability. They should also implement procedures to
independently verify and safeguard the integrity of the company's financial
reporting. Disclosure of material matters concerning the organization should be
timely and balanced to ensure that all investors have access to clear, factual
information.
6. Environment-Friendly Policies: An organization should not aim growth at the cost of
the environment and human health. It is especially important that policies of the
company are environment friendly.

Good Corporate Governance standards are essential to ensure significant value

enhancement to all the stakeholders of a company, including the minority shareholders, the
government and the economy. India has always stood at the top in protecting the interests
of minority shareholders and this has been attributed to positive corporate governance
norms that have been put in place by the government and SEBI.

Previous Year Question- 2007-2014

The marks for these questions are not mentioned because before 2015, the pattern was
different. The questions were not of 10 marks or 15 marks. The year is also not mentioned
since they are all very old papers, and the year is of not much relevance to us.

Q.1) Discuss the salient features of corporate governance in India?

Approach

Introduction: Start with a quote and then define corporate governance with an example.

Email – hello@edutap.co.in, M - 8146207241 16 | P a g e http://www.edutap.co.in

 Body: Discuss the salient features of corporate governance.

Conclusion: Conclude it with by highlighting the importance of corporate governance in an

organization.

Answer

"Corporate Governance is about promoting corporate fairness, transparency and

accountability" - J Wolfensohn

Corporate governance broadly refers to the mechanisms, processes and relations by which
corporations are controlled and directed. Corporate governance includes the processes
through which corporations' objectives are set and pursued in the context of the social,
regulatory and market environment. Example: Infosys topped a poll on best practices in
corporate governance conducted by Asia money. Infosys ranked 1, across categories of
‘disclosure and transparency, responsibilities of management and the board of directors,
and shareholders' rights and equitable treatment' for the FY 2020.

Features of corporate governance

1. Transparency: This means that the Board of Directors must release all relevant
information to the stakeholders. They must show all the necessary financial and
operational data to the stakeholders. They must not hide any important information
or maintain any secrecy. Example: The high-profile corporate governance failure
scams like the stock market scam, the UTI scam, Ketan Parikh scam, Satyam scam,
which were severely criticized by the shareholders, called for a need to make
corporate governance in India transparent.
2. Protection of Shareholders' Rights: The Board of Directors must protect the rights of
the stakeholders. They must protect all the stakeholders, especially the minority
stakeholders. Example: Some companies have made Corporate Social Responsibility
as part of their Corporate Governance. So, they are thinking in interest of local
communities and protection of stakeholder, especially the minority stakeholders.
3. More Powers to CEO: The CEO must be given more powers so that he can approve
the company’s plans and strategies independently.
4. Accountability: The CEO and the Board of Directors must be made accountable for
their actions to the stakeholders and to the entire society. Example: Someone who
epitomizes Accountability principle is American businessman, successful investor and
dedicated philanthropist, Warren Buffet. Since his childhood, Buffet has held himself
accountable for not only his successes and failures, but for everything in between.

Email – hello@edutap.co.in, M - 8146207241 17 | P a g e http://www.edutap.co.in

 5. Based on Ethics: Corporate governance is based on ethics, moral principles and
values. So, the Board of directors must avoid unfair practices, cheating, exploitation,
etc. Example: A recent study by Harvard law, indicates that the issue of potential
sexual misconduct at the companies has been rising significantly. To resolve this
issue, many companies have implemented policies on sexual harassment as part of
corporate governance.
6. Universal Application: Corporate governance has universal application. That is, it is
used by companies all over the world. It is given a legal recognition in many
countries. All companies must use corporate governance voluntarily.
7. Systematic: Corporate governance is very systematic. It is based on laws,
procedures, practices, rules, etc. All these laws are made to increase the wealth of
the shareholders and to protect the rights of all the stakeholders of the company.

Corporate governance encompasses systems and procedures designed to structure

authority, balance responsibility and provide accountability to stakeholders at all levels.
Fundamentally, corporate governance is about harmonizing success with sustainability.
Management literature have shown that corporate Governance is a set of ideas, innovation,
creativity, thinking having certain ethics, values, principles which gives direction and shape
to its people, personnel and possessors of companies and help them to succeed in global
market.

Q.2) “Corporate Governance and Corporate Social Responsibility are the twins to shine a
corporate entity” — Discuss.
Approach

Introduction: Briefly explain the importance of corporate governance in an organization.

Body: Explain key aspects of corporate governance importance and also discuss the
importance of corporate social responsibility.

Conclusion: Highlight the twin relationship between corporate governance and corporate
social responsibility.

Answer

Business has a responsibility beyond its basic responsibility to its shareholders, a

responsibility to a broader constituency that includes its key stakeholders: customers,
employee, NGOs, government - the people of the communities in which it operates.

Email – hello@edutap.co.in, M - 8146207241 18 | P a g e http://www.edutap.co.in

 Corporate Governance is a widest control mechanism within which a company takes it
management decisions whereas CSR is the ethical behavior of a company towards society
and thus both are important for a company in their own way.

Good corporate governance is vital for the prosperity of an economy. Some of the key
aspects of its importance are as following,

1. To enhance corporate sustainability: Good corporate governance will ensure that

the board of directors meet regularly, retain control over the business and are clear
in the division of their responsibilities. The board members act in the best interest of
the shareholders. It helps build trust in the organization and enhances its
sustainability in the long run. Moreover, good corporate governance helps in
reducing frauds and scandals which leads to public confidence and national prestige.
Example: Tata Group of companies continues to be one of the biggest
conglomerates even after 150 years of its existence.
2. Shareholders activism is valued and encouraged: Shareholders enjoy the right to
participate in the governance and receive fair treatment from the management and
board. Stakeholder’s rights are delineated and communicated. Shareholders are
regularly apprised and sensitized about the company affairs. Example: Recently,
Reliance’s Industries virtually conducted its 43rd Annual General Board meeting and
important decision regarding the company’s future growth aspect were shared with
Shareholders.
3. Continuous flow of information and feedback: Good Governance not only improves
information flow between management and boards for an efficient functioning but
also enable a channel for feedback from customers, clients and Shareholders which
help a company to matchup with the market requirements. Example: Hindustan
Unilever Co., the most valuable FMCG in India has kept pace with changing times
and consumer preferences cause of its efficient sharing of information and
incorporation of continuous feedback not only from shareholder and employees but
also the consumers and clients.
4. Improve gender equity and diversity: Good corporate governance is also required
for regular and proper gender sensitization of the employee so as to develop a
healthy and participatory work culture. It helps break glass ceiling and diversifies
board membership. Example: L’Oreal is known for its best corporate governance
practices and is also a Pioneer in term of gender equality. L’Oréal is regularly audited
to obtain the GEEIS (Gender Equality European and International Standard) in 23
countries and EDGE (Economic Dividends for Gender Equality) certifications in 7
countries.
5. Enhances goodwill of the company: Adhering to disclosure norms, regular updating
of records, regulatory requirements like taking care of minority, good governance
enhances goodwill of the company. Example: Infosys has maintained the value of
'Walk the Talk' and gained the respect of its stakeholders.

Email – hello@edutap.co.in, M - 8146207241 19 | P a g e http://www.edutap.co.in

 Importance of Corporate social responsibility in an organization

Being a good corporate citizen means that companies not only be internally well governed
and but also being part of society and using resources from society, companies need to be
externally responsible as well.

Thus, Corporate Social Responsibility is also important for and organization and can
enhance its image in the following ways.

1. Improved public image: This is crucial, as consumers assess your public image when
deciding whether to buy from you. Something simple, like staff members
volunteering an hour a week at a charity, shows that you’re a brand committed to
helping others. As a result, you’ll appear much more favorable to consumers.
Example: About 66% of Tata Group revenue goes to philanthropic activities which
have hugely enhanced the public image of the group.
2. Increased brand awareness and recognition.: If you’re committed to ethical
practices, this news will spread. More people will therefore hear about your brand,
which creates an increased brand awareness. Example: Ultra tech cements is making
a name for itself through its CSR initiative of building model Villages.
3. An advantage over competitors: By embracing CSR, you stand out from competitors
in your industry. You establish yourself as a company committed to going one step
further by considering social and environmental factors. Example: Patanjali has
become a renowned name in FMCG and is using its profits towards charity and social
welfare which provides it an advantage from its competitors.
4. Increased customer engagement: If you’re using sustainable systems, you should
shout it from the rooftops. Post it on your social media channels and create a story
out of your efforts. Furthermore, you should show your efforts to local media outlets
in the hope they’ll give it some coverage. Customers will follow this and engage with
your brand and operations. Example: Most modern day FMCG use CSR as
promotional activity to engage with customers. A lot of promotional ads are being
done “Like Dabur Vatika Salutes Female Cancer Survivors #BraveandBeautiful.”

According to experts, socially responsible companies demonstrate greater stability in their

benefits in times of economic crisis than those funds whose sole aim is profit. It seems that
the moral and economic values linked to CSR provide balance and robustness to the system,
as well as temper the incentive to maximize profits as the sole objective. Hence, Corporate
Governance and Corporate Social Responsibility are the twins to shine a corporate entity.

Email – hello@edutap.co.in, M - 8146207241 20 | P a g e http://www.edutap.co.in

 Homework Question
Q1) What is Corporate Governance? What are the ethical issues with Corporate
Governance in India? Suggest measures to improve Corporate Governance in India. (600
words, 15 Marks)

Email – hello@edutap.co.in, M - 8146207241 21 | P a g e http://www.edutap.co.in

Email – hello@edutap.co.in, M - 8146207241 1|P a g e http://www.edutap.co.in
Email – hello@edutap.co.in, M - 8146207241 2|P a g e http://www.edutap.co.in
 Introduction
This document consists of 4 sections

1) 10 Marker Questions: In this part we shall be giving you 10 marker questions. These
are supposed to be somewhat direct and easy as compared to 15 marker questions

2) 15 Marker Questions: In this part we shall be giving you 15 marker questions. These
are supposed to be little complex or consisting of multiple sub questions or may be
an integrated question from concepts of different chapters

3) Previous Year Descriptive Questions: The previous year descriptive questions are
subdivided into two sections
a. 2021 Onwards: We shall cover all previous year questions asked in the exam
from 2021 onwards
b. 2007-2014: We shall cover all relevant previous year questions asked in the exam
between 2007-2014
I. Some questions from previous years might not be covered in any of the
chapter since they might not belong to current syllabus. The syllabus
earlier was different from the current syllabus.
II. Some questions from previous years might not be covered as they are
related to current affairs of that year which is not relevant now.
III. Moreover, some chapters have lot of previous year questions, in those
chapters we have given complete answers to some questions and for the
rest of the questions, the answer outline is given
c. The exam was conducted in objective pattern between 2015 and 2020. For
these years no subjective questions is there

4) Homework Question: There is one homework question for you to think and write.
The answer for this question will not be given by us.

Email – hello@edutap.co.in, M - 8146207241 3|P a g e http://www.edutap.co.in

 Other Guidelines

1. The answers given here are not to be crammed. They are not given from the
perspective of being perfect answers. No answer is a prefect answer. If we ask
500 people to write answers to these questions, then we will get 500 different
answers and we cannot decide which one is perfect answer. The answers given
here is to help you guide towards the approach to answer writing

2. The answers written here may exceed the word limit in some cases. But that is
done intentionally, so that you understand it better and in exam you can further
summarize that information to achieve the desired word-limit.

3. In certain answers, the content/points written may not be covered in the

notes/videos. But that is also done to make you realize that we cannot simply be
bookish in writing answers, rather some content/points need to be written from
our understanding of things. This is called the application part

4. We would recommend that questions to the answers should not be just read.
What you shall do is
a. For 2-3 questions, please write answer in your own words so that you get
practice for descriptive writing. Then try to match your answer with
answer given by us and try to self-evaluate
b. For the rest of the questions, try to make an outline as in what you will
write in this answer. Then try to match your outline with answer given by
us and try to self-evaluate

Please refer the videos on “Science and Art of Descriptive Writing” that have been
included earlier in the course. Those videos shall be watched again and again to get
better hold on answer writing

Email – hello@edutap.co.in, M - 8146207241 4|P a g e http://www.edutap.co.in

 10 Marker
Q1.) Elaborate on some ethical Dilemmas arising out of conflicts of values by giving suitable
examples?
Structure
Approach

Introduction: Start with explaining what caused conflict of values.

Body: Discuss the ethical dilemmas arising out of conflicting values with examples.

Conclusion: Conclude with providing solution on how to deal with the dilemmas.

Answer
Value conflicts are caused by perceived or actual incompatible belief systems. Values are
beliefs that people use to give meaning to their lives. Values explain what is "good" or "bad,"
"right" or "wrong," "just" or "unjust."

Every professional has to live with two sets of values: personal and professional. These two
values could be conflicting at times. However, whenever a clash occurs between these two
values, professional and morally responsible people give preference to the professional value
over the personal value or interest. Thus, a judge may sentence his only son for murder, or a
teacher may punish his daughter for not learning the lesson-there are several such cases in
society.

In many cases, barring penal code cases, a compromise, trade off or a balanced approach
may be possible. For instance, a forest officer and on his inspection, tour find a woodcutter
cutting a tree from the forest illegally. On enquiry, officer learns that woodcutter is poor,
jobless and his family is starving. Being compassionate, you may tell him not to indulge in this
illegal act again and impose a penalty on him. He pays him money which helps him pay his
penalty and feed his family too.

In the case of media reporting too, there may be some potential conflict areas between the
public's right to know everything about the reported case and the individual's right to privacy
and confidentiality. For instance, it is not necessary to reveal the full name and address of a
rape victim while reporting such a case.

Email – hello@edutap.co.in, M - 8146207241 5|P a g e http://www.edutap.co.in

 The above examples make it clear that a compromise is possible in many cases by following
a middle-path, thus it can also be concluded that the Golden mean theory of Aristotle can
provide a right direction in case of the ethical dilemmas caused due to the conflict of Values.

Q.2) Discuss, how the board of directors of a company can set the tone for an ethical
culture in an organization.
Structure
Approach

Introduction: Start with an example and explaining the role of Board of Directors in Corporate
culture.

Body: Discuss the different ways by which Board of Directors can set the tone for an ethical
culture in an organization

Conclusion: Conclude with forward looking manner.

Answer:
One defining feature of 2017 has been seeing corporate directors and officers being held
personally responsible for illegal behavior at their companies. For example: Oliver Schmidt,
the highest-ranking Volkswagen officer residing in the United States, was sentenced to seven
years in prison and ordered to pay $400,000 for his role in the VW diesel emissions scandal.

A corporation’s culture starts at the top with the board of directors, CEO or executive
director, and other top managers. Everyone else within the corporation gets a sense of the
corporation’s values through what they say and what the corporation has to say through its
media, advertising, employee communications and other messages.

The board of directors of a company can set the tone for an ethical culture in an organization
in the following way:

1. Know the health of the company’s ethical culture. Most boards or their audit committees
hear pro forma reports on ethics violations and lists of calls to their hotlines. Few know
anything about the culture in which these violations arise. Do these behaviors reflect
widespread acceptance of improper behavior — or a few bad apples?

Email – hello@edutap.co.in, M - 8146207241 6|P a g e http://www.edutap.co.in

 2. Evaluating the ethics of the business strategy. Business models and strategies are being
junked and reformulated everywhere in our modern economy. New sources of revenue are
being sought; radical transformations of manufacturing and delivery systems are being
implemented. Sadly, some boards are swept along by management proposals to change the
nature of the business without asking critical ethics questions about the strategies.

3. Monitoring the real ethics risks in the organization. Every organization manages financial
risks, and boards pay close attention to the level of that risk. Few senior managements and
even fewer boards evaluate the ethical risk of entering new markets, extending the supply
chain to new regions, or putting extreme performance pressure on a sales force that is prone
to shortcuts.

4. Monitoring the ethical behavior of the leadership team. No decisions are more complex
than hiring and firing top executives. It is tough enough to find a prospect who has the skills
needed to execute the company’s strategy for the next five years. It’s even more difficult to
identify if the leader has the required ethical behavior.

5. Verifying that the elements of the ethics and compliance system are strong. Every company
has a code of conduct, but is it viewed cynically by the staff? Do people really believe the
company wants more than minimal compliance? The board needs a way of evaluating the
strength of these systems, not just their existence.

By meeting each of these responsibilities, the board sets the tone for true ethical behavior in
the company — and does its best to prevent future wrongdoing. Today it is not enough to be
conscientious about cleaning up scandals after they occur.

15 Marker
Q3). What do you mean by ethics? Discuss, why ethical issues occur in Business?
Structure
Approach

Introduction: Start with a standard definition of Ethics and link it with the Business Ethics.

Body: Discuss the different reasons for ethical issues in Business.

Conclusion: Conclude in a forward looking and a realistic note.

Email – hello@edutap.co.in, M - 8146207241 7|P a g e http://www.edutap.co.in

 Answer:
According to Potter Stewart, “Ethics is knowing the difference between what you have a right
to do and and what is right to do.”

Ethics carries significant influence in the corporate world. Business ethics is the study of how
a business should act in the face of ethical dilemmas and controversial situations. This can
include a number of different situations, including how a business is governed, how stocks
are traded, a business' role in social issues, and more.

Obviously, ethics problems in business appear in many forms. Although not common or
universal, they occur frequently. Finding out what is responsible for causing them is one step
that can be taken toward minimizing their impact on business operations and on the people
affected. Some main reasons are as follows:

1) Personal Gain and Selfish Interest

Personal gain, or even greed, cause some ethics problems. Businesses sometimes employ
people whose personal values are less than desirable. They will put their own welfare ahead
of all others, regardless of the harm done to their employees, the company, or society.

2) Competitive Pressure on Profits

When companies are squeezed by tough competition, they sometimes engage in unethical
activities to protect their profits. This may be especially true in companies whose financial
performance is already substandard.

For example: An especially infamous example of unethical behavior comes from Enron. For
years, the energy company was submitting inaccurate financial statements. Collusion with
the accounting firm Arthur Andersen LLP meant that Enron’s auditor kept signing off on the
falsified statements.

3) Business Goals versus Personal Values

Ethical conflicts in business sometimes occur when a company pursues goals or uses methods
that are unacceptable to some of its employees. Whistleblowing may be one outcome if the
employee goes to the public with a complaint after failing to convince the company or correct
the alleged abuse.

4) Top Management sets an Example

Company ethics begin at the highest manager level in a company. The top managers,
including CEOs, financial officers, vice-presidents and other officers, establish the vision,
goals and tone of operations for the company. Top managers who are unethical or who

Email – hello@edutap.co.in, M - 8146207241 8|P a g e http://www.edutap.co.in

 promote activities and decisions that are unethical, project the image that ethics don’t
matter.

For example: Rana Kapoor, former YES Bank managing director and chief executive officer,
used the lender as his “personal fiefdom” to carry out illegal activities and was the architect
of a financial fraud. Practices followed by the YES Bank under Kapoor’s regime promoted a
poor credit and compliance culture, centralization of power and lack of institutionalization,
putting it in a situation where its survival came into question.

5) Unclear Policies
In some cases, managers and employees exhibit poor ethical behavior because the company
doesn’t offer a clear model of ethics. A company policy manual and ethical code of conduct
normally establish ethical standards and consequences for poor decisions. Some bus inesses
have no formal ethical policy documents and offer no guidance at all. Others have policies
that are unclear, vague, inconsistent or not consistently enforced.

For example: Sexual harassment and abuse allegations against figures high up in Fox News
started in 2016 — just over a year before the #MeToo movement took off. Multiple women
at the television network said that sexual harassment from superiors led to them being fired,
demoted, or denied jobs entirely. It was later revealed that Fox News had settled several
lawsuits (some of them years earlier), but the network was more concerned with covering up
the allegations than resolving the underlying issue with clear guidelines and policy to deal
with sexual harassment at workplace.

Even after taking all necessary precautions, ethical problems can still arise, so it's crucial that
you be well-prepared to tackle them. First, be aware of all the ethical concerns your business
is likely to face, identify ways to detect them at the earliest, and most importantly, learn to
manage such issues fairly without ignoring or denying that the problem exists.

Email – hello@edutap.co.in, M - 8146207241 9|P a g e http://www.edutap.co.in

 Q.4) What is an Ethics Programme? Discuss the best practices to develop an Ethical
programme in an organization.
Structure
Approach

Introduction: Start with explaining what an ethics programme is.

Body: Discuss the best practices in an ethics programme.

Conclusion: Conclude in a forward looking manner and on a positive note highlighting the
importance of these practices.

Answer
An ethics program helps communicate your company’s business philosophy to employees,
vendors, investors and customers. A good ethics program can help strengthen your
relationships with employees and customers and improve your company’s reputation.
Although your employees might be familiar with your company’s informal stance on ethics,
instituting a program eliminates any confusion and provides everyone with the same
information regarding ethical business behavior.

Best practices are the working standards or ethical guidelines that provide the best course(s)
of action in a given situation. In order to develop best ethical programme, an organization
can follow the following practices:

1. Vision statement. A vision statement defines the long-term, most desirable future
state for the organization. An ethical program needs to have a clear vision statement
that gives employees and managers a first screening test for decisions. Example:
When setting performance goals HR should question whether the goals further the
vision.
2. Values statement. A values statement defines general principles of required behavior.
It’s the standard against which decisions and actions are evaluated to determine if
they meet the company’s and employees’ requirements. Example: An organization
that adopts the simple values of fairness, honesty and integrity would set only those
goals that employees can achieve through honest means and would require that
employees refrain from “gaming the system” and that communication among all
parties be truthful.

Email – hello@edutap.co.in, M - 8146207241 10 | P a g e http://www.edutap.co.in

 3. Code of ethics: It is a written set of rules issued by an organization/government to its
employees to help them conduct their actions in accordance with the foundational
values and ethical standards.
4. Ethics officer. An ethics officer ensures that the ethics systems are in place and
functioning. This person monitors the organization to determine if it’s making a good
faith effort to abide by its stated values, that the code of conduct supports those
values and that violations of those values are prevented or detected and addressed.
5. Ethics committee. The ethics committee oversees the organization’s ethics initiative
and supervises the ethics officer. It’s the final interpreter of the ethics code and the
final authority on the need for new or revised ethics policies
6. Ethics training. Ethics training teaches employees what the organization requires,
gives them the opportunity to practice applying the values to hypothetical situations
and challenges, and prepares them to apply those same standards in the real world.
7. Measurements and rewards. In most organizations, employees know what’s
important by virtue of what the organization measures and rewards. If ethical conduct
is assessed and rewarded, and if unethical conduct is identified and dissuaded,
employees will believe that the organization’s principals mean it when they say the
values and code of ethics are important.
8. Ethical leadership. The bottom line is that ethics is a leadership issue. Leaders set the
tone, shape the climate and define the standards. If managers are trustworthy and
trusted, if their motivations are honorable and their expectations crystal clear, and if
they’re paying attention to ethics as an integral element of every business decision,
then ethical problems will be rare.

Above discussed best practices can prevent the vast majority of ethics violations, large
and small, if they’re systematically and systemically applied. Nothing has proven effective
in preventing the rogue employee from perverting any system. But these practices can
ensure that an organization is doing nothing to encourage good people to do bad things.

Previous Year Questions – 2021 Onwards

Please be informed that in this section we will discussing all the descriptive Previous Year
Questions (PYQs), all the questions appearing in this section has a tag of the year in which
that question was asked. If there is no question in this document on any exam from a
particular year or years, it means that no question was asked for that exam in that year(s)
or exam itself was not conducted in that year.

Email – hello@edutap.co.in, M - 8146207241 11 | P a g e http://www.edutap.co.in

 Question 1 - Describe Manager’s role in encouraging ethical behavior in an
Organisation. RBI Grade B (Phase 2) – 2022 – (10 Marks, 400 words)
Approach

Introduction: Start with the basic meaning of ethics

Body: Briefly Point-by-point discuss the role of manager in creating ethical behaviour in the
organization.

Conclusion: Conclude on a positive note and highlight the importance of having ethical
business environment.

Answer

Ethics in the workplace is defined as the moral code that guides the behavior of employees
with respect to what is right and wrong in regard to conduct and decision making. Ethical
decision making in the workplace takes into account the individual employee’s best interest
and also takes into account the best interest of those impacted. Managers play a key role in
encouraging ethical behavior in an organization, managers along with other board members
are the flagbearers of the ethical principles. Following are some key roles initiated by
manager for having an ethical business environment –

A – Managers helps in building the Ethical Culture - managers throughout the organization
are the single most influential factor in establishing and maintaining a healthy ethical culture.
Managers, by default of their elevated roles, become the most accessible models for how to
succeed and advance employee career path within an organization

B – Ethical leadership – Leaders and managers set the tone, shape the climate and define the
standards. If managers are trustworthy and trusted, if their motivations are honorable and
their expectations crystal clear, and if they’re paying attention to ethics as an integral
element of every business decision, then ethical problems will be rare.

C – Manager as an Ethics officer – A good manager develops the vision statement, value
Statement and he also develops the Organizational code of ethics. A Manager also acts like
an ethics officer, who ensures that the ethics systems are in place and functioning. This
person monitors the organization to determine if it’s making a good faith effort to abide by
its stated values, that the code of conduct supports those values and that violations of those
values are prevented or detected and addressed.

D – Other roles of manager in creating ethical business environments

Email – hello@edutap.co.in, M - 8146207241 12 | P a g e http://www.edutap.co.in

 1. Establish organizational roles to manage ethics
2. Schedule ongoing assessment of ethics requirements
3. Establish required operating values and behaviors
4. Align organizational behaviors with operating values
5. Develop awareness and sensitivity to ethical issues
6. Integrate ethical guidelines to decision making
7. Structure mechanisms to resolving ethical dilemmas
8. Facilitate ongoing evaluation and updates to the program
9. Training the employees and values and ethics of the organization
10. Rewards and Punishment to be in line with the behavior being ethical or not

Above discussed best practices can prevent the vast majority of ethics violations, large and
small, if they’re systematically and systemically applied. Nothing has proven effective in
preventing the rogue employee from perverting any system. But these practices can ensure
that an organization is doing nothing to encourage good people to do bad things. Therefore,
we can conclude that, managers play a pivotal and an integral role in creating the ethical
behaviour in an organization.

Previous Year Questions – 2007- 2014

No questions have been asked from ethics between 2007 to 2014

Homework Question
Q.5) Write Short note on the following:
a) Virtue Ethics
b) Theory of Utilitarianism
c) Care Ethics
d) Justice Approach
e) Code of Conduct

Email – hello@edutap.co.in, M - 8146207241 13 | P a g e http://www.edutap.co.in

Email – hello@edutap.co.in, M - 8146207241 1|P ag e http://www.edutap.co.in
Email – hello@edutap.co.in, M - 8146207241 2|P ag e http://www.edutap.co.in
 Q.1) Write Short note on:
a) Perceptual Errors
b) Integrative and distributive negotiation

[Marks: 15, Word Limit: 600, Difficulty Level: Moderate]

Answer

a) A perceptual error is the inability to judge humans, things, or situations fairly and
accurately. Examples could include such things as bias, prejudice, stereotyping, which have
always caused human beings to err in different aspects of their lives.

Perceptual error has strong impact in organization, and it hampers in proper decision-
making skill while hiring, performance appraisal, review, feedback etc.

Some of the most common type of perceptual errors in workplace are:

1.Selective Perception-People generally interpret according to their basis of interests, idea,

and backgrounds. It is the tendency not to notice and forget the stimuli that cause
emotional discomfort. For example we might think that fresher graduates with above 80 %
marks will exceptionally do well in technical interviews of respective subjects

2.Halo Effect-We misjudge people by concentrating on one single behavior or trait. It has
deep impact and give inaccurate result most of the time. For example we always have an
impression of a lazy person can never be punctual in any occasion.

3.Stereotypes-We always have a tendency to classify people to a general groups /category

in order to simplify the matter. For example-Women are always good homemakers and can
do well in work life balance

4.Contrast Effect-We again sometimes judge people in comparison to others. This example
generally found in sports, academics and performance review

5.Projection- Projection of one's own attitude, personality or behavior into some other
person. For example- To all honest people, everybody is honest.

To fully utilize the resources at hand and promote a culture of growth and innovation,
Organizations need to be fully aware of their perceptual errors. All the errors discussed
above can and are having severe impacts on the organization ranging from being selectively

Email – hello@edutap.co.in, M - 8146207241 3|P ag e http://www.edutap.co.in

 wrong to wrongly attributing performing employees. All the factors might lead to
restraining organisational growth.

b) Negotiation is a process in which two parties seek to resolve their conflicts, by modifying
their demands, to reach a mutually acceptable solution. The two common types of
negotiation are distributive negotiation and integrative negotiation.

1. Distributive negotiation: It is a competitive negotiation strategy in which one party gains

only if the other party loses something. It is used as a negotiation strategy to distribute
fixed resources such as money, resources, assets, etc. between both the parties. An
example of distributive bargaining is the successful hostile takeover by pharmaceutical
company Sanofi-Aventis’s (SNY)of Genzyme Corp. Genzyme produced drugs for the
treatment of rare genetic disorders and Sanofi-Aventis saw the company to expand into a
niche industry and broaden its product offering. As a result of this hostile takeover, SNY
now controls the management of publicly traded company Genzyme without the consent or
cooperation of the company’s board of directors. The loss of ownership control by Genzyme
has become a gain for the SNY.

2. Integrative negotiation: It is a negotiation strategy in which parties collaborate to find a

"win-win" solution to their dispute. This strategy focuses on developing mutually beneficial
agreements based on the interests of the disputants. For Example: After weeks of hectic
negotiations, Vodafone India and Idea Cellular have agreed to merge in a deal valued at
$23.2 billion, creating India's largest mobile telephony company with over 395 million
subscribers, 35% of the market share and 41% revenue share thanks to integrative
bargaining between the two. Both parties have collaborated to have a win-win solution.

To conclude, negotiation is simply a technique, a discussion among individuals to reach to a

mutual agreement where everyone gains something or the other and conflicts are avoided.
In the wordings of Marvin Levin - “If you are planning on doing business with someone
again, don’t be too tough in the negotiations. If you’re going to skin a cat, don’t keep it as a
house cat.”

Email – hello@edutap.co.in, M - 8146207241 4|P ag e http://www.edutap.co.in