Meaning and components of group dynamics.

 Q. Explain the meaning and components of group dynamics.

Ans. Meaning of Group Dynamics: Group Dynamics contains two terms – Group and Dynamics. Group is basically collectivity of two or more persons. Dynamics comes from greek word meaning force. Thus, group dynamic is concerned with the interaction of forces among group members in a social situation. Analysis of forces within a group is known as group dynamics.

It refers to the forces operating in groups, which have an impact on the behaviour of group members. Group dynamics refers to those forces operating or present in the group and which influence the behaviour of the members of the group. These forces chiefly are the group composition, group norms, group leadership, group cohesiveness, etc. The study of group dynamics provides information to the managers about the way to control the behaviour of the members of the group. 

The social process by which people interact with each other in small groups is called group dynamics.  Group dynamics refers to the understanding of behavior of people in groups that are trying to solve a problem on making a decision. 

Thus, Group Dynamics refers to - 1. Social process by which people interact in a group environment. 2. The attitudinal and behavioural characteristics of a group.

Components of Group Dynamics: The major components of group dynamics are the following: 

1. Group Composition: Group Composition has an important part to play in influencing the group dynamics. Group composition depends on the extent of commonalty of the members of the group. The members of a group are either homogeneous or a heterogeneous. In the homogenous group the members have similar qualities. This similarity can be (i) Demographic, e.g. caste, sex, education, experience, age, income, culture, etc. (ii) personality (iii) abilities and (iv) opinions. In the heterogeneous group the members differ on these points.

Group Composition is important because it affects the behaviour of the members of the group and the results.  The members of both the types of groups in respect of behaviour and possible results are as follows:

(a) Homogeneous Group: The members of homogenous group have more cohesiveness. Consequently, there are less conflicts among them. Since there is no variety in their qualities, theses members are often unsuccessful in handling adverse situations

(b) Heterogeneous Group: The members of such a group have different qualities. Consequently, there is lack of cohesiveness among them. Because of this there are usually conflicts. The members have different specialities which help them to face adverse situation successfully.

In this way, we can see that the group composition affects the behaviour of the group members.

2. Group Norms: Norms refers to those standards which guide the behaviour of the members of the group. Group norms are the acceptable standards of behaviour within a group that are shared by the members of the group. Norms defines the boundaries of the acceptable and unacceptable behaviour.

Some rules are required for the successful running of the activities of a group. These rules are known as norms in a group. Normames norms are those standards which guide the behaviour of the members of the group. For example, the order of a manager to the effect that nobody will use telephone for personal use during the working hours in the office, gradually becomes a norm. These norms guide the members as to how to conduct themselves in a particular situation – what is to be done and what is not to be done. Group norms are normally unwritten (oral). They are brought to the notice of the members and after that they are bound to comply with them. Those members who ignore these norms have to face boycott from the group for which there is a provision to this effect. 

Features of Group Norms: The chief features of the group norms are as follows:

(i) Group norms guide the behaviour of the members of the group.

(ii) Group norms clearly specify the duties of the members of the group. 

(iii) Group norms can both be written and oral.

(iv) Group norms are laid down for important function.

(v) Those memers members who failed to observe the group norms can be boycotted.

(vi) There is a variety among group norms of different groups.

(vii) Group norms generally take shape gradually but if needed they can be formed quickly.

(viii) Group norms do not apply to all the members in equal measure, e.g., the members occupying high ranks may not always like to follow them as it is not necessary to do so.

They are typically created in order to –

(i) Facilitate group survival.

(ii) Make behaviour more predictable.

(iii) Avoid embarrassing situations.

(iv) express the values of the group.

Why People Conform to Group Norms? 

The members of the group conform to group norms because of the following reasons:

(i) Proper Role Pay: Every member of the group has to perform a special role. Those members who observe group norms can perform their role more effectively. Norms guide them in their action.

(ii) Self Interest: Every member of the group has to keep in mind the interest of the group. By conforming the group norms he can protect his personal interest along with the interests of the group.

(iii) Group Control: The group has a claim on the members of the group. They are afraid lest they should be boycotted by the group. That is  why they observe the group norms.

(iv) Rewards: In some of the groups, it is already known to the members that those who observe the group norms will be rewarded. They observe norms in order to get rewarded.

(v) Goodwill: Some groups enjoy a special goodwill among the people. In order to maintain this goodwill, the members have to observe the norms compulsorily.

3. Group Leadership: Group leadership is another element that influences the behaviour of the members.  Every group has a leader. The style of working of the leader has an effect on the behavior of the members of the group. He/She gives an identity to the group as a functioning unit. Groups can both be formal and informal. 

In the formal group, leaders are appointed. Their ranks, powers and responsibilities are formally laid down (explained). The chief function of these leaders is to order and direct the members in the work of achieving the objectives of the organization. On the contrary, leaders are not appointed in the informal group but are accepted because of their personality or impression. Such leaders help the members of the group in giving expression to their thoughts and helping them in getting their demands highlighted. There can be more than one leader at a time in a group.

4. Group Cohesiveness: Group Cohesiveness refers to the closeness or similarity of attitude, behaviour and performance of the members of the group. Group Cohesiveness is an indicator of the unity of the members of the group. If this cohesiveness is found in ample measure in a group then, (i) the members are cooperative, (ii) unanimity of opinion is immediately established on any point, (iii) mambers like one another, (iv) members observe group norms, (v) members perform effectively. This situation compels the members to stick to the group. On the contrary, if the cohesiveness is little short,  then (i) the members lack the spirit of cooperation, (ii) there are differences of opinion which delays decisions, (iii) members do not like one another, (iv) members ignored group norms and cannot work effectively. This situation compels the members to drift away from the group. 

Features of a Cohesive Group: A cohesive group has the following features:

(i) All the members have positive attitude towards the group objectives and group norms.

(ii) The number of the number of the members of the group is less.

(iii) Members are more loyal to the group.

(iv) Members often meet regularly at short interval.

(v) There is free and effective communication among the members.

(vi) Group of a successful history.

(vii) Members of the group feel secure and satisfied.

(viii) Members are not willing to leave the group under any condition.

(ix) Members take the final decision quickly.

(x) The goodwill of the group is greeter as compared to the goodwill of other groups. 

5. Group Status: Group status refers to the position of rank of a person in a group which he gets because of his personal qualities. A person is recognised by his status and gets motivated by high rank. The behaviour of a motivated person is different to others. In nutshell, we can say that because of the differences in the ranks, people behave differently. In an organisation there are two types of status available:

(a) Formal Status: Various posts are created in every organisation, e.g. General Manager, Functional Manager, Supervisor, etc. People get a particular post in accordance with their education, training and experience. The salary, other benefits, respect, etc. are connected with the position that one holds. One gets encouraged on seeing these things and tries to work better.

(b) Informal Status: In another organization along with the formal status one gets informal status also. Informal status is obtained with the help of experience, personality, age, sex, etc. As accepting somebody as the leader is an example an informal status.

6. Group Roles: The role means the expected behaviour of the holder of a special position in a social unit. Here a social unit can be a family, a club or an educational institution. 

The role of the members of the group is cleared in formal group. Every member remains conscious of his role. Every effort is made so that nobody can raise a finger on their role (i.e., point out any weakness or deficiency in their role). This feeling or thinking is reflected in their behaviour. On the other hand, the role of the members in an informal group is not clear. It is not explicitly laid down as to what member is expected to do in a particular situation. This is not decided at any point of time. This unclear on unspecified nature of the role of the members affect them negatively. It is, therefore, clear that greater clarity about the role of the members would give them great satisfaction and they will work in a better way for the group. 

7. Group Think: In the group, all the members have different types of information. Everything is discussed about various kinds of information. With the help of such discussion, many alternatives emerged as a possible solution to the problem. Then all the alternatives are analysed and some final decision is arrived at.  Since all the members have participated in the process of arriving at the final decision, such a decision is happily implemented. On the contrary, on some occasion, time and resources are visting in arriving at group decisions. Unnecessary controversy takes place. Suggestions includes by politics are advanced. Individual interests outweigh group interests. In the absence of individual responsibility in such decisions risk factor is ignored. In this context, it has been said that responsibility of many means nobody's responsibility. This reduces the effectiveness of the group decisions. Even then if the negative points in the group decisions are controlled a little, they can prove to be better than individual decisions.

Or

Group Think is the psychological phenomenon that occurs within a group of people which desires for a harmony or confirmity in the group results in an irational or dysfunctional decision making outcome. It occurs when members of a group exert pressure on each other to come to consensus in a decision making. It results in –

1. Careless judgements.

2. Unrealistic appraisals of alternative course of actions.

3. A lack of reality testing.

Critically Evaluate Globalisation of Indian Economy

 Q. Critically evaluate globalisation of Indian economy.

Ans. Globalisation means linking the economy of a country with the economies of other countries by means of free trade, free mobility of capital and labour, etc. It also means inviting multinational corporations to invest in India. As a result, there will be unrestricted flow of goods and services, capital, capital, people, technology and expertise among different countries of the world. There will be increased cooperation of Indian economy with different economies across the world. Capital and technology will flow from the developed countries of the world towards India. The ultimate aim of globalisation is to look upon the world as a ‘global village’. 

Evaluation: It is very necessary to have knowledge of effects of globalization in order to make its evaluation. Globalisation has both positive and negative effects on Indian economy. 

(A) Positive Effects of Globalisation:

1. Increase in Foreign Trade: As a result of foreign trade policies adopted in the weak of globalisation, India’s share in the world trade has gone up. 

2. Increase in Foreign Investment: As a consequence of globalisation, there has been a considerable increase in foreign direct investment as well as foreign portfolio investment. 

(a) Foreign Direct Investment (FDI): Foreign direct investment is made by foreign companies in order to establish wholly owned companies in another country and to manage them or to purchase shares of companies in another country for the purpose of managing such companies. The main characteristic of foreign direct investment is that native companies are managed by the foreign companies or new companies are set up in india by foreign companies. In this type of investment, it is the foreign investors who takes risk and is solely responsible for profit/loss of such company. 

(b) Portfolio Investment: Under this type of investment, foreign companies/foreign institutional investors (FIIs) buy shares/debentures of native companies, however management and control remain vested with the native/domestic companies themselves. 

Because of significant increase in foreign investment, India began to experience improvement in foreign exchange reserves. 

3. Increase in Foreign Collaborations: Globalisation has promoted collaboration of foreign companies with many Indian companies. These collaboration agreements can be technical collaboration, financial collaboration or both. In financial collaboration, foreign companies provide financial resources, while in technical collaboration modern foreign technology is provided by foreign companies. Foreign companies are setting up many enterprises in India in collaboration with Indian companies. 

4. Increase in Foreign Exchange Reserves: As a result of globalisation of Indian economy, foreign exchange reserves have also increased substantially. 

5. Expansion of Market: Globalisation has expanded the size of market. It has permitted Indian business units to expand their business in the whole world. Now multinational corporations have no national boundaries. Indian companies like Infosys, Tata Consultancy, Wipro, Tata Steel, Reliance, etc. are doing their business in many countries.

6. Technological Development: Globalisation has enabled the inflow of foreign technology, which is very superior and advanced. Now Indian business units use this modern technology.

7. Brand Development: Globalisation has promoted the use of branded goods. Now not only durable goods are branded but products like garments, juices, snacks, food grains, etc., are also branded. Foreign brands are very popular among Indian consumers. Brand development has  led to quality improvement.

8. Development of Service Sector: Globalisation has helped in development of Indian capital market. Now many foreign investors invest in Indian capital market. There has been substantial increase in inflow of foreign direct investment and portfolio investment. 

9. Development of Service Sector: Globalisation has helped in growth of service sector. With the entry of foreign countries, tremendous improvement has been witnessed in various services like telecommunication, insurance, banking, etc. 

10. Increase in Employment: Globalisation has promoted employment opportunities. Foreign companies are establishing their production and trading units in India. It has increased employment opportunities for Indians, e.g. many Indians are presently employed in foreign insurance companies, mobile companies, etc. 

11. Reduction of Brain Drain: As a result of globalisation, many multinational corporations have set up their business units in India. These MNCs provide attractive salary package and good working conditions to efficient, skilled Indian engineers, managers, professionals, etc. Now Indians get good employment opportunities in India. It has resulted in reduction in brain drain. 

12. Improvement in Standard of Living: As a result of globalisation, the standard of living of Indian population. Now Indians get better quality goods at low prices.  Globalisation has resulted in reduction of prices of many products particularly electronic items like television, AC, mobile phones, refrigerator, etc. Now middle-income group also uses these luxury products, bids were earlier used by rich class only.

(B) Negative Effects of Globalisation:

1. Ĺoss to Domestic Industries: As a consequence of globalisation, foreign competition has increased in india. Now Indian industrial units have to compete with foreign industrial units. Because of better quality and low cost of foreign goods, many industrial units have failed to face competition and have been closed. Small and cottage industries are worst hit by this increased competition. 

2. Unemployment: Foreign companies operating in India use capital intensive technology. Even some Indian companies use imported capital intensive technology. With the increasing use of computers and automatic machines, employment avenues are reduced.

3. Exploitation of Labour: Globalisation is exploiting unskilled workers by giving lower wages, less job security, long working hours. Labourers have to work even in these conditions because bad job and less wages are better than no jobs.

4. Demonstration Effect: With the easy availability of foreign goods, demonstration effect has increased among Indians. Now many consumers are using luxury products by imitating others. It has promoted tendency of wasteful consumption in India. This increasing wasteful expenditure has in turn reduced saving and capital information.

5. Increase in Inequalities: Globalisation has increased inequalities in our economy.  Globalisation has beneftted MNCs and big industrial units but small and cottage industries are adversely hit by it. It has increased income inequalities in India.

6. Dominance of Foreign Institutions: With globalisation domination of foreign institutions has increased in India. Globalisation has helped foreign companies in enlarging their market share.  For example, in Indian cold drink market, a large share is controlled by Pepsi and Coca-Cola, which are foreign companies.

7. Bad Effect on Culture and Value System: Many global companies sell such products as distort our culture and value system. The vulgar advertisements shown by some MNCs pollute the thinking of young generation. Some MNCs indulge in unethical and corrupt practices for their self-interest. These companies do not hesitate to offer bribe to high officials of host nation to allow them to enter into such transactions which only serve their own interest.

8. Less Entry in Strategic Areas: The global companies mostly take entry in consumer goods like readymade garments, cosmetics, processed foods, soft drinks, toothpaste, etc. These goods do not play vital role in the economic development of any nation. The global companies do not invest in strategic areas like power sector, steel industry, fertilizers, etc. The entry in risky projects is also very limited. Similarly, there is insufficient entry of global companies in the area of technology and capital goods. [Strategic means important or essential]

9. Problem of Brain Drain: The global companies recruit qualified and skilled engineers, technicians, experts in the host nations and after sometime, these experts are posted abroad in their foreign subsidiaries/head office. That way, global companies drain talented persons of host nation to other nations.

10. Production of Prohibited Goods: In order to get more profits, global companies indulge in production of even those goods which are harmful for the consumers. Many a times, the global companies indulge in production of such medicines and other products, the production of which is otherwise banned in their parent nation. Thus, global companies earn profit even at the cost of health of consumers. 

11. Political Interference: The global companies prove detrimental to the economic and political freedom of host countries. These companies interfere in the politics of host nation. These global companies make all efforts to bring that political party to power in the host country which is favourably inclined to them.

12. Unbalanced Regional Development: Global companies set up industries in developed cities and towns where infrastructural facilities are easily available and not in backward areas. It leads to further development of already developed areas and backward areas continued to remain backward. As a result, regional disparities increase.

13. Tax Evasion: The host country imposes corporation tax on the income of companies. To avoid this tax, global companies reduce their profits by adopting transfer pricing methods. Under this method, global companies buy intermediate goods from their subsidiaries abroad at high price and thus reduce their local profits. Similarly, global companies export their products to their subsidiaries abroad at lower prices, so as to under-value the exports and thereby show lower local profits. In other words, global companies over-invoice the imports and under-invoice the exports, so as to show less profits. That way through manipulation of bills, global companies evade tax. 

Differentiate a single user operating system and a multi user operating system.

 Q. Differentiate a single user operating system and a multi user operating system. 

Ans. Single User System: In this kind of system the processor or a computer does only one job at a time. That is at one point of time only one task can be performed. For example : MS-DOS.

Multi User System: This type of system is used by more than one user. It allows the interaction of one user with the other. It also helps in executing more than one task at a particular time. For example : Unix and Windows NT.

Difference between Single User & Multi User O.S.

SINGLE USER (OS)	MULTI USER (OS)
1. Single person can use at a time.	1. More than one user can use at a time.
2. Standalone	2. Many systems are connected with one system.
3. More secure	3. Less secure.
4. No sharing of data	4. Sharing of data
5. More interactive	5. Less interactive.
6. Simple	6. Complex
7. Cheap	7. Costly
8. Less functions	8. More functions
9. Small in size	9. Large in size
10. Examples are DOS, Windows	10. Examples are Windows NT, Unix

Single User And Multi User Operating System.

What is Delegation of Authority? Its Difference from Decentralisation and Importance

 Q. What do you mean by delegation of authority? How is it different from decentralisation? What is the importance of delegation of authority? 

Ans. Meaning of Delegation of Authority: Delegation of authority is an important part of the organising process. Its need felt when due to excessive workload on a manager, he is unable to perform all jobs independently. In this situation, he divides his work among the subordinates. But, just mere a division of work does not guarantee success. For the successful work performance, authority should be given to the subordinates to take work decisions. Thus, dividion of work and assigning authority for the successful work performance is called delegation of authority. 

Delegation of authority is the process of entrusting responsibility and authority, and creating accountability of the person to whom work or responsibility has been handed over. 

According to F.G. Moore, “Delegation of authority means assigning work to others and giving them authority to do it.”

Difference between Delegation and Decentralisation: Delegation refers to the process of assigning responsibility and authority to subordinates to perform specified tasks. On the other hand, Decentralisation refers to the systematic dispersal of authority throughout the organisation to lower levels of management. The difference between Delegation and Decentralisation is as follows :

Sr. No.	Basis of Difference	Delegation	Decentralisation
1.	Transfer of Accountability	Under delegation the ultimate responsibility or accountability lies on the delegator, meaning thereby that there cannot be any transfer of accountability.	Under decentralisation there is a transfer of accountability along with authority.
2.	Control	The delegator continues having his control over his subordinates even after delegation of authority.	Under this the person giving authority losses the power to control his subordinates.
3.	Compulsion	Delegation is essential in all enterprises because the manager has to delegate his authority to his subordinates to get work out of them. It means that without it the work is impossible.	It is not necessary to have it because it is not essential that the superior should divide his authority in a comprehensive way in the entire organisation. It means that in its absence work is possible.
4.	Permanency in Transfer of Authorities	Under delegation the transfer of authority is temporary. It means that authority can be taken back any time.	Under decentralisation authority is permanently given to the subordinates.
5.	Scope	Delegation shows a limited transfer of authority and hence its scope is limited.	It shows a wide distribution of authority and, therefore, its scope is wide.
6.	Relation between Delegator and Delegant	The delegant is the nearest subordinate of the delegator. It is, therefore, a relation between the two persons.	Many departments get authority simulultaneously and the delegator is the general manager. Hence, it is a relation among the top management and various departments.
7.	Deliberate Policy	Delegation is adopted by the managers for works of daily routine. It is not necessary to formulate any policy at the top hierarchy.	Delegation is essential for decentralisation. It means it depends on delegation.
8.	Dependence	Decentralisation is not essential for delegation.	Decision-making authority is distributed among various levels of management.
9.	Creation of Profit and Centres	A subordinate does not become a separate profit centre because of delegation. It means there is no creation of profit centres under it.	Decentralisation creates many separate units which can be called separate profit centres. Hence, all the units can have separate profit-loss amounts.

Importance of Delegation of Authority: Delegation of Authority is an important instrument for effective management. If the workload of a person is more than his capacity, he tries to sustain his capacity through delegation of authority. Thus, it is clear that power of an officer is extended to delegation of authority. The importance of delegation of authority is clarified through the following facts:

(1) Effective Management: Effectiveness means successful accomplishment of an objective. Delegation of authority reduces the workload of a manager. Manyers who practice delegation of authority are definitely better decision makers than those managers who do not delegate authority. The former ones get the benefit of the skills of their subordinates. This situation eases the attainment of objectives. As a result, the effectiveness of managers is improved.

(2) Employee Development: The mental growth of a person take place only when he has authority to take decisions. The process of delegation of authority provides managers the authority to take decisions. With the given authority, managers take decision contingent to the situation. Not only this but they even guide and motivate their subordinates. This type of practice adds on to their knowledge and experience. As a result, in future they become more able to take extra responsibility.

(3) Motivation of Employees: In the process of delegation of authority, both of authority and responsibility are deleged to the subordinates. This situition provides liberty to work and take decisions on part of subordinates. Gaining through this, they exhibit their talent and skill. With better performance, the subordinates create a niche of themselves in the organisation. Consequently, they get job satisfaction and feel motivated to perform even better.

(4) Facilitation of Growth: Delegation of authority does not only develop only one person or division but facilitate the development of organisation as a whole. As a result, profits are increased and managers as well as subordinates feel motivated. With this situation in an organisation efficiency, motivation and satisfaction are at their maximum peak. As adequate number of able employees are available in an organisation to take decisions; expansion, modernisation and diversification of a business can be done with full confidence. 

(5) Basis of Management Hierarchy: Management hierarchy is inevitable to run a business organisation successfully. Only because of this hierarchy, the superior and subordinates they come in contact with each other and get an opportunity to understand one another. The hierarchy is established through the process of delegation of authority. Under this, authority flows from top level to bottom level. As a result, senior and subordinate links are established from top to bottom.

(6) Better Coordination: Delegation of authority is a process to establish relation between responsibility, authority and accountability. Through this, employees get clarification with regard to their powers, duties and accountability for work performance. Thus, a clear picture is delineated (defined) for all the jobs performed at various levels, which automatically establishes better coordination. The advantage of this is that neither duplicacy nor overlapping of work take place. 

(7) Leads to Quick and Better Decisions: Decisions by delegation are taken not only at the top hierarchy but at all levels of management and it leads to quick decisions. All the subordinates fully know the problems of their field and this knowledge helps them in taking good decisions. 

(8) Continuity in Organisation: Because of delegation of authority the subordinates continue getting information about the activities of the superiors. If some superior leaves the concern or is promoting do some higher rank, his subordinate can easily be appointed in his place. Thus, continue in the organization has maintained and the work performance is not impeded (delayed, prevent, hindered).