M.B.A. DEGREE EXAMINATION, MAY 2017
Third Year
C HUMAN RESOURCE PLANNING AND DEVELOPMENT
Organisational Dynamics
Time 3 Hours Maximum Marks: 75
SECTION-A × 5 15)
Answer three questions
Q1) Stress management.
Conformity.
Bases of power.
Organisational values.
Coalition formation.
Group behaviour.
SECTION-B × 15 45)
Answer three questions.
Q2) Describe the group development process.
Q3) Discuss how to deal with stress and burnout in an organisation.
Q4) Explain the concept of role dynamics.
Q5) Write about the concepts of decentralization and delegation and distinguish
between them.
Q6) Enumerate the responsibilities of any organization towards society.
Q7) What is meant by cross-cultural dynamics? State its features.
SECTION-C
Compulsory
Q8) Case study
Nikhil has joined as Director of an organization during early March, 2001 in
New Delhi, shifting from Calcutta. During the selection process, the committee
duly considered his earlier pay package and has given him a proportionate rise in
pay adding also the tax savings which he will accrue due to splitting of 50 per
cent of his pay as reimbursement. He was happy for such compensation design,
as his savings will be more in his new position. Within two weeks of his joining,
government has issued a notification, declaring ceiling on all perquisites and
bringing all reimbursements given as perquisites within the ambit of tax net.
Nikhil raised this issue and asked for reprieve with upward revision of his
compensation package. The company pleaded its helplessness as government
orders are beyond their control and any revision at this stage will set a bad
precedence to other employees of the organization. He was told to continue and
wait for the next revision after a year, when these issues will be taken care of.
Salary information in the company is not confidential. It is so transparent that
even the lowest rung of the organisation knows what others get. Internally
employees feel de-motivated when they find their pay raise is disproportionate
to the pay raise of their bosses. The company has a system to give Diwali gifts to
all in cash and kind. This is kept strictly confidential and nobody knows what
others are getting. The Board approves the total amount for this purpose and
distributes among employees, keeping in view their performance and hierarchy.
Performance feedbacks are obtained from the structured performance appraisal
system.
Nikhil was tipped off that he will be able to reduce his loss through the Diwali
gift and hence he should not feel de-motivated at this stage. During early
November, 2001, Nikhil received a sealed packet with a gift cheque of

10,000
and gift vouchers worth

20,000. Next morning he received a phone call from
the Chairman, who asked him to indicate his feelings when he met him in person
during the afternoon. In between, Nikhil did a detailed computation in
consultation with his Chartered Accountant and found that he cannot get him
absolved from tax burden from this gift amount as he has to show this in 'other
income category' and pay about 33 per cent towards tax. A visibly perturbed
Nikhil decides to quit. He loses all hopes for re-negotiation and sends his 3
months notice to the Chairman.
Questions:
Do you think Nikhil is right in his stand?
What could be the alternatives for the organization to reduce the pay gap?
Should the chairman initiate any action to retain Nikhil considering his
outstanding contributions?