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Banking Diploma Exam Preparation Course : Part - I

Compliance Route Banking Diploma Exam Preparation Course Mob : 01819349881 & 01732646139
1. What do you mean environment of an organization?
2. Describe the elements of external and internal
environments?
3. Describe the influence internal and external environment on
business?
4. Different between the external and internal environment?
5. “People need organization and also organization need
people” describe.
6. “Organization is social system” described.
1. What do you mean by formal organization and informal
organization? What are the weaknesses of informal ?
2. organization? Is informal organization necessary? Give
reasons.
3. Explain how an informal organization affects an
organization both favorably and adversely. Is informal
organization is necessary? Give reasons for your answer ?
4. What are key forces of Organizational behavior? As a unit
manager of X Bank how can you apply these forces?
1. Describe in brief the fundamental concepts those are the basis of
Organizational Behavior. Have these concepts applicability in the
context of Bangladesh? Justify your answer.
2. Discuss the key forces of Organizational Behavior. Among the key
forces which one is the most important force? Give reasons for
your answer.
3. Briefly discuss the models of organizational behavior. How do
you find their applicability in Bangladesh?
4. What is meant by quality of work life? How can you improve the
quality of work life?
5. Define the behavioral approach of leadership style. Which one
among them do you think best for the organization?
Environment :
The term ‘environment’ indicates the surroundings or conditions in which a particular activity is
carried on. It is well-known that organization is a social entity that has a hierarchical structure where
all necessary items are put together and they act within it to reach the collective goal. Organizations
and their activity are always being affected by the environment. In an organization, every action of
the management body is influenced by the environment

What is the environment of an organization?

An organization's environment includes all the internal and external factors that affect its operations
and performance. Internal factors include the organization's structure, culture, leadership, and
resources. External factors include the economy, technology, political and legal factors, customers,
and competitors. Understanding and adapting to the environment is essential for an organization's
success and sustainability. The business environment can be commonly classified into:
 Internal environment and
 External environment:
 General environment
 Industry environment
Internal Environment:
The internal environment of a business consists of all the factors that are directly involved
with the organization and which have a direct impact on its business and routine activities.
These factors are generally within the control of the organization.

The internal environment of a business consists of all the factors that are directly involved
with the organization and which have a direct impact on its business and routine activities.
These factors are generally within the control of the organization, irrespective of whether
they are tangible or intangible. The internal environment includes everything within the
boundaries of the organization.
External Environment:
Factors outside or organization are the elements of the external environment. The
organization has no control over how the external environment elements will shape up. The
external environment embraces all general environmental factors and an organization’s
specific industry-related factors. The general environmental factors include those factors
that are common in nature and generally affect all organizations.
 The external environment is typically divided into two categories, micro environment and
macro environment:

 Micro environment: The micro environment includes all those factors that have a direct impact on
the activities of the organization because they are present in the immediate environment surrounding
the organization. These factors have an impact on organization performance and are somewhat
controllable. Micro environment includes customers, competitors, suppliers, public and
intermediaries.

 Macro environment: The macro environment usually has an impact on the entire industry and
not just a specific organization. It is also known as the general environment and cannot be controlled
by the organization. Hence, the organization needs to adapt their operations in accordance with the
changes in the macro environment. The macro environment includes the economic environment and
the non- economic environment, consisting of the political, legal, demographic, socio-cultural,
technological and global environment.
 The external environment can be subdivided into two layers;
a) General Environment
b) Task / Industry Environment.

a) General Environment of Organization:

The general environment usually includes political, economic, sociocultural, technological, legal,
environmental (natural) and demographic factors in a particular country or region. The general
environment consists of factors that may have an immediate direct effect on operations but influences
the activities of the firm.

b) Task / Industry Environment

The industry task environment refers to the specific external factors that directly influence a company's
operations and performance within its industry. These factors include customers, competitors,
suppliers, labor markets, and government regulations
Resources of the Organization:
An organization s resources can be discussed under five broad heads: physical resources, human resources; financial
resources, informational resources, and technological resources.

 Physical resources: Physical resources include land and buildings, warehouses, all kinds of materials,
equipment and machinery. These are the physical assets of an organization, for example plant, building,
etc., which are used to transform inputs into outputs.

 Financial resources: Financial resources include capital used for financing the operations of the organization
including working capital. Examples are investment by owners, profits, reserve funds, and revenues received
out of a sale. These comprise of the capital and funds that are part of an organization. Companies allocate
funds to those activities that offer maximum output by incurring the least cost. Hence, the goal is optimum
resource allocation.

 Human resources: Human resources include all employees of the organization from the top level to the
lowest level of the organization. Examples are teachers in a university, marketing executives in a
manufacturing company, and manual workers in a factory. The human resources take operational and
managerial decisions regarding the organization.
  Informational resources: Informational resources encompass ‘usable data needed to make
effective decisions. Examples are sales forecasts, price lists from suppliers, market-related
data, employee profile, and production reports.

 Technological resources: The technical knowledge that is employed while manufacturing the
products and services of the organization.

Organization’s image/goodwill
The reputation of an organization is a very valuable intangible asset. High reputation or goodwill
develops a favorable image of the organization in the minds of the public, in other words in the minds
of the customers. A negative image destroys the organization’s efforts to attract customers in a
competitive world.
Elements of external environment:
1. Economic factors: Such as inflation, interest rates and
unemployment levels.
2. Political factors: Including government policies and regulations,
trade agreements, and geopolitical tensions.
3. Technological factors: Such as advances in automation data
analytics and digital communication.
4. Social factors: Including demographic changes, consumer trends,
and cultural shifts.
5. Environmental factors: Such as climate change, natural disasters,
and sustainability concerns.
6. Legal factors: Including changes tolab or laws, taxation policies,
and intellectual property rights.
7. Competitive factors: including the actions of rival businesses,
industry trends, and market saturation.
Describe the influence internal and external environment on
business?
Influence of Internal and External Environment on Business
1. Internal factors: Such as organizational culture, management
style, and employee attitudes, can influence the overall
performance of a company.
2. External factors: Such as market trends, competition, and
government regulations, can impact a business's operations and
profitability. Understanding and adapting to the internal and
external environment can help organizations maximize their
potential and achieve their goals.
 InternalEnvironment ExternalEnvironment

[Link] All those factors that are present All those factors that are present outside
within the organization and have a the organization and which do not directly
direct impact on its operations. influence its
Operations.

[Link] Internal factors can be External factors cannot be

Controlled by the organization Controlled by the organization.
[Link] Strengths and weaknesses Opportunities and threats
[Link] of changes Specific to the organization Industry-specific

[Link] on the Affects the operations, decisions and Affects the operations, decisions and
organization objectives of the objectives of the organization
organization
6. Resources Physical, financial, human and Micro and macro environment
Included Technological resources
I. Suppliers: Suppliers are the providers of production or service materials. Dealing
with suppliers is an important task of management. A good relationship between
the organization and the suppliers is important for an organization to keep a
steady following of quality input materials.
II. Customers & Buyers: The customer is who pays money for the organization’s
product or services. They are the peoples who hand them the profit that the
companies are targeting.
III. Competitors & New Entrants: Competitive marketplace companies are always trying
to stay and go further ahead of their competitors. In the current world economy,
competition and competitors in all respects have increased extremely.
IV. Substitute Products: The producers of substitute products are indirect competitors.
Substitute products serve the same categories of customers. They can meet the
similar needs of customers, and therefore, emerge, as threats.
V. Regulators: Regulators are units in the task environment that have the authority to
control, regulate or influence an organization’s policies and practices.
The external environment is typically divided into two categories, micro environment
and macro environment:
Micro environment: The micro environment includes all those factors that have a
direct impact on the activities of the organization because they are present in the
immediate environment surrounding the organization. These factors have an impact
on organization performance and are somewhat controllable. Micro environment
includes:
i. Customers
ii. Competitors
iii. Suppliers
iv. Public and intermediaries. (RbMb Ges ga¨¯’ZvKvix)

Macro environment: The macro environment usually has an impact on the entire
industry and not just a specific organization. It is also known as the general
environment and cannot be controlled by the organization. The organization needs to
adapt their operations in accordance with the changes in the macro environment. The
macro environment includes the economic environment and the non-economic
environment, consisting of the political, legal, demographic, socio-cultural,
technological and global environment.
Discuss Organization need people and People also need Organization?
Importance of People in Organizations: Organizations need people to achieve their
goals and objectives. People bringing skills, knowledge, and expertise to the
organization.
Importance of Organizations for People: People also need organizations to fulfill
their career aspirations. Organizations provide opportunities for growth and
development.

Define an organization is a social system?

Definition:
An organization is a social system made up of individuals who work together to
achieve common objectives. Just like any other social system, an organization is
characterized by complex relationships, formal and informal structures, and various
levels of power and influence. Understanding the social dynamics of an organization
is crucial for effective management and successful outcomes. Key elements include
organizational culture, communication networks, leadership styles, and group
dynamics.
What do you mean by formal organization and informal organization? What are the weaknesses of
informal organization? Is informal organization necessary? Give reasons.

Formal Organization:
Formal organizations are structured groups with defined roles, responsibilities, and rules.
They often have a hierarchical structure, with clear lines of authority and communication.
Formal organizations can be businesses, government agencies, or non-profit organizations.
The goals and objectives of a formal organization are usually clearly defined and
established. Individual employees are expected to adhere to policies and procedures, and
there are usually consequences for not doing so. Formal organizations are often more rigid
in their decision-making processes, but they can also be more efficient and effective in
achieving their goals.
Informal organization:
Refers to the relationships, communication and interactions that arise among employees
outside of the formal hierarchy of an organization. Can have a significant impact on the
culture and productivity of a workplace. May form around shared interests, common goals
or unofficial leaders. Examples include social groups, informal networks and unspoken rules
or norms within a workplace. Effective management should recognize and utilize the
benefits of informal organization, while also addressing any negative effects it may have on
the workplace.
 Weaknesses or disadvantage of informal organization
a. Disobedience:
b. Creation of Pressure
c. Change of Prevent
d. Less Discipline
e. Lack of Stability

 Disobedience: Sometimes informal discussions encourage disobedience in subordinates. It

brings more harm than good.
 Creation of Pressure: These organizations often create unfair pressure on the authorities to
save the interests of factions.
 Obstacles to achieving goals: Sometimes the objectives of informal organizations and those
of formal organizations conflict.
 Prevent to change: If there is a need for any change in the organizational structure, the

Informal organization prevents it. As a result, the organization fails to achieve its goals.
Informal organization has both advantages and disadvantages. But if the executives can align
the goals of the organization with the activities of these organizations, then the organization
can achieve greater benefits. So executives should always proceed very carefully analyzing the
dynamics of informal organizations.
Is informal organization necessary? Give reasons:

First, it provides a source of friendships and social contact for organization members. Second,
the interpersonal relationships and informal groups help employees feel better-informed
about and connected with what is going on in their firm, thus giving them some sense of
control over their work environment. For this reason, it’s very important for an organization
because It help’s to build a formal organization.

Advantages of Informal Organization: Advantages of informal organization are discussed

below:
 Group of Unity: The group spirit that arises from informal organizations often has a favorable
effect on the activities of the organization. Motivated by team spirit, they can contribute to
the overall improvement of the organization by working together.
 Agreement Creation: Informal organizations create an impression of organization in the
minds of employees. In this they provide commitment to achieve the goals of the
organization.
 Progress of Relation: Many times officials and workers at different levels of the organization
meet informally. There is an exchange of feelings between them. As a result, the level of
misunderstanding is reduced and the development of human relations is greatly improved.
 Power growth: There is an opportunity for subordinates in organizations to approach senior
executives rank make no barrier. As a result, the morale of the employees increases.

 Inter- personal Communication: It provides opportunities for interaction between different

levels of employees. As a result, a cordial relationship develops between them through
sincere exchange of ideas. Which helps in interpersonal communication.
At the end we say informal organization are necessary because an informal organization
establishes formal organization.
Explain how an informal organization affects an organization both favorably and adversely. Is
informal organization is necessary? Give reasons for your answer.

 Group of unity: The group spirit that arises from informal organizations often has a favorable
effect on the activities of the organization. Motivated by team spirit, they can contribute to the
overall improvement of the organization by working together

 Social Relation: Informal organizations create a misapprehension of organization in the minds of

employees. In this they provide commitment to achieve the goals of the organization

 Source of Structure: The creation of such an organization from some elements of the
organization. Such elements are customs, communication etc. When all these elements of the
social group are favorable, the organization is formed. The organization's rules and procedures
are also made on the basis of these materials
 Part of Organization : An informal organization is a part of the larger core organization. This
organization was formed to accelerate the implementation of the general principles of formal
organization
 Progress of relation: Many times officials and workers at different levels of the organization
meet informally. There is an exchange of feelings between them. As a result, the level of
misunderstandings is reduced and there is considerable improvement in the development of
human relations
 Power growth: Such organizations allow subordinates to approach senior executives. Rank is no
barrier. As a result, employee morale increases

Disadvantages:
Informal organizations also possess the following potential disadvantages and problems that
require astute and careful management attention.
 Disobedience: Sometimes informal discussions encourage subordinates to disobey. It brings
more harm than good
 Creation of Pressure : These organizations often create unfair pressure on the authorities to
save their factional interests
 Barriers to achiveing goals:Sometimes the objectives of informal organizations and those of
formal organizations conflict. Bad things happen more than good
 Prevent of change: If there is a need for any change in the organizational structure, the informal
organization prevents it. As a result, the organization fails to achieve its goals

Important/Necessary of Informal Organization: An informal organization born spontaneously

when workers interact with each others on a regular basis. Moreover, informal relationships
often develop based on social relationships, staff needs, natural structure, etc. For a concern
informal organization are important.

 Social Relation: This organization is formed as a result of the mutual relationship of the
employees of the organization. The stronger the relationship between the workers, the
stronger the foundation of the organization. As a result, claim collection is accelerated. The
members of this organization are organized without regard to the formal organization.

 Small and Temporary: Informal organizations are smaller in size than the main organization.
This organization is not sustainable if its objectives are achieved. And because of this, the
policy of the organization, the leadership becomes unstable

 Sources of Structure: Creation of such an organization from some elements of the

organization. Such elements are customs, communication etc. When all these elements of the
social group are favorable, the organization is formed. The rules and regulations of the
organization are formulated on the basis of these elements.
Formal organization originates from the set organizational structure and informal
organization originates from formal organization. For an efficient organization, both formal
and informal organizations are required. Formal organization can work indecently. But
informal organization depends totally upon the formal organization. Finally informal
organization is very important for formal organization. It helps to established the formal
organization

What are key forces of Organizational behavior? As a unit manager of X Bank how can apply these
forces?

Organizational behavior:
Organizational behavior describes how people interact with one another inside of an
organization, such as a business. These interactions subsequently influence how the
organization itself behaves and how well it performs. Organization behavior is a way of
thinking a way of conceiving problems and articulating research and action solutions
Factors Influencing Organizational Behavior

People:
People make up the internal social system of the organization. That system
consists of individuals and groups and groups may be large and small, formal
and informal.

Structure:
The structure defines the formal relationship and use of people in the
organization.
Technology:
Technology provides the resources with which people work and affects the tasks that they
perform. The great benefit of technology is that it allows people to do more and better work

Environment:
All organizations operate within an internal and external environment. A single organization
does not exist alone. An organization is a part of a larger system that contains many other
elements, such as the government, the family, and other organizations
A unit manager of X Bank how can you apply these forces:
No organization can survive in isolation. Every organization has to operate between internal and external
environment. In order to maintain a sound organizational environment, one needs to keep a close eye on the
dynamics of the internal and external environment. The Unit Manager X Bank has to interact with superiors,
subordinates, peers and colleagues in the work environment. And among them the manager is the keeper of the
connections. An organization is a part of a system, the components of which are government, family and other
organizations. All these elements influence each other in a complex system. No organization like a X bank is
free from the influence of such external and internal environment. All these environments influence the attitude
of employees and work environment. Therefore, human behavior must be taken into account when reviewing the
organization of environmental elements.
Finally, the various elements or forces mentioned influence organizational behavior. Therefore, for the
explanation and analysis of organizational behavior, the relationship between people, structure, technology and
environment must be developed. It will be possible to perform organizational functions by increasing the welfare
of people
Describe in brief the fundamental concepts those are the basis of Organizational Behavior. Have these
concepts applicability in the context of Bangladesh? Justify your answer
Fundamental concepts of Organizational Behavior:
 Individual difference: The idea of individual differences comes originally from psychology.
From the day of birth, each person is unique, and personal experiences after birth tend to
make people even more different.
 Perception People’s perceptions are also different when they see an object. Two people can
differently present the same object. And this is occurring in their experiences.
 Motivated Behavior: An employee has so many needs inside him. So, they want to fulfill those
needs. That’s why; they had to perform well in the organization.
 Desire for Involvement: Every employee is actively seeking opportunities to work to involve in
decision-making problems. They hunger for the chance to share what they know and to learn
from the experience.
 Value of the Person: An employee wants to be treated separately from another factor of
production.
 Human Dignity: This concept is very philosophical. Every person needs to be treated with
dignity and respect, whether it’s the CEO of the company or labor.
 Organization and Social System: we learn that organizations are social systems;
consequently, activities therein are governed by social laws as well as psychological laws. Just
as people have psychological needs, they also have social roles and status.
Applicability in the context of Bangladesh:
Human resource is an essential element in an organization. In addition to people, organizations
have structures, technologies, processes and functions. Again, individuals have aspirations,
personalities, values, frustrations, anxieties, etc. Apart from that, the relationship between
person to person, person to group relationship, internal conflict, group dynamics etc. also exist
in the organization. Organizational behavior on the one hand analyzes the human aspects of
people as well as regulates their behavior, studies, guidance. The concepts of organizational
behavior are very important to run the formal and informal organization.

Discuss elaborately the key forces of Organizational Behavior. Among the key forces which one
is the most important force? Give reasons for your answer?
Organizational Behavior:
Organizational behavior refers to the study of how people behave within an organization.
Organization behavior deal with the clinical assessment of behavior of people of the
organization. It is such as discipline which provides the organizational behavior list to find
out some ways and means with a view to establish acceptable behavior. Key topics in
organizational behavior include motivation, communication, leadership, and teamwork
Key Forces/Basis of Organizational Behavior:
 Leadership: The way that leaders interact with employees can drive or hinder
organizational performance and outcomes.
 Communication: Effective communication is essential to building trust,
collaboration, and innovation within an organization.
 Culture: The shared values, beliefs, and norms within an organization can
influence employee behavior and decision-making Diversity: Organizational
diversity can enhance creativity and problem-solving, but it requires a
commitment to inclusion and equity.
 Technology: Technological advancements can transform organizational processes,
structures, and even business models.
 Globalization: Globalization brings unique opportunities and challenges for
organizational behavior, including cross-cultural communication and adaptation.
Ethics: Ethical considerations are important to how an organization operates,
including employee behavior and external relationships.
Which one is the most important force:
Leadership is an important function of management which helps to maximize effiency and to achieve
organization goals.
 Initiates action: Leader is a person who strates the work by communicating the polices and plans to the
subordinates from where the work actually strats.
 Motivation: A leader proves to be plying an incentive role in the concern’s working. He motivates the
employees which economic and non-economic rewards and thereby gets the work from the subordinates.
 Providing guidance: A leader has not only supervised but also play a guiding role for the subordinates.
Guidance here means instructing the subordinates the way they have to perform their work effectively
and efficiently Building morale: Morale denotes willing co-operation of the employees towards their work
and getting them into confidence and winning their trust. A leader can be a morale booster by achieving
full co-operation so that they performance with best of their abilities as they work to achieve goals.
 Co-ordination: Co-ordination can be achieved through reconciling personal interests with organizational
goals. This synchronization can be achieved through proper and effective co-ordination which should be
primary motive of a leader
Who is leader? What is leadership? Briefly discuss the leadership models of organization. How do you
find their applicability in Bangladesh?
Differences are observed between different organizations depending on the quality of
organizational behavior. The main reason for this difference is the different models of
organizational behavior that govern different organizations from a managerial
perspective. Although these models are latent in the workplace, they act as very
powerful influencers in controlling organizational behavior. The way in which the
manager acts and the infrastructure on which the organization is seen to be based,
the whole organization and its employees directly or indirectly act or are forced to act
in accordance with what ultimately can be seen as a model of organizational behavior.
The major models of organizational behavior are-
1. Autocratic Model
2. The custodial Model
3. The Supportive Model
4. The Collegical Model
1. Autocratic Model:
This model is basically based on McGregor's X theory. In this case the power of command is
not at the bottom level. Authority is purely formal. Subordinates receive only the extent to
which this power is delegated to lower levels. The essence of this model is that workers will
show loyalty to their leader or boss rather than show loyalty to the organization. This model
has a historical basis and was certainly considered the most popular model during the
industrial revolution

Characteristics. These are as follows:

 Power: In this case, all- time power is given to an executive.
 Authority: In this case, the authority is formal, that is, the authority of the manager is
paramount here
 Obedience: In this model, employees show loyalty to the boss rather than to the
organization
 Subsistence: In this case workers can meet their basic needs. Like food, clothing, shelter
etc.
 Progress: The progress of the employees so poor Because, in this case, everything is on
the manager
 Dependence: Workers show loyalty to their boss by becoming dependent on the boss
The Custodial Model:
In the autocratic model, employees always follow the orders of their leader or boss. They
are not considered any opinions here. As a result, frustration among employees is
observed. Therefore, to increase the productivity of employees, they need to be satisfied.
The supervisory model pays particular attention to employee satisfaction and well- being
and treats employees as somewhat important. The salient features of this model are
mentioned below.

 Economic resources: This model is based on the concept of economic resources

 Eliminating security insecurity: According to this model, employees are financially
secure. The lack of security is eliminated
 Dependence among employees: Every employee wants assurance. In this case there is a
guarantee of certainty. As a result employees can work with interest
 Dependence: In this case, workers are not on them; Depends on the organization
 Passive Co- operation: Employees do not feel strongly motivated towards the work
even if they get the supervisor's cooperation. As a result they provide only passive
cooperation
 Progress: More progress is achieved as employees work with enthusiasm
The Supportive Model:
This model is developed on the basis of Rensis Likert's principles of supportive
relationships. Likert said, "Leadership and other processes in the organization must be
such that employees perceive them as supportive of their own skill development." This
model is similar to Theory- x developed by McGregor. Its features are mentioned below-

 Leadership: Instead of power and money, its basis is leadership. Through leadership,
employees can be properly assigned to work
 Managerial function: Here the main function of management is to provide support to
employees. 3. Employee attitude: In this case, the psychological result of the employee
is participation in the work
 Employee attitude: In this case, the psychological result of the employee is the feeling
of participation in the work. They do the work of the organization as their own
 Employee's work: The responsibility of the employees is to perform the tasks with
obedience
 Employee's Needs: According to this model, employees try to fulfill higher level needs
 Morale: It shows the high morale of the employees
The Collegial Model:
The term collegial refers to a group of people with a common purpose. It's a team idea. Its
features are as follows-
1. Performance on the basis of partnership of managerial staff.
2. Recognition of the role of managers in the workplace.
3. Teamwork.
4. Employee's sense of responsibility in performance.
5. Self- discipline of workers and managers.
In the context of the above discussion of the models, it can be said that the supportive
model is very useful in the content for Bangladesh workers and management model-
Collaborative execution undoubtedly increases the quality of work.
 Opportunity for Careers Growth: Human resources seek career growth. They tend to
release from a job, which don‘t promise career growth. Organization must take it in
consideration that an individual is satisfied with his career and what career potential
exists in the job.
 Opportunity to Develop Human Capabilities: An individual is most satisfied, when he gets
an opportunity to use and develop his capabilities. So for measuring and introducing QWL
organization need to see to what extent does a job enable human resources to use and
develop their skills, knowledge and abilities and undertake tasks that are satisfying.
 Social Integration in the Work Place: An organization can possess supportive work groups
and interpersonal openness. Organization must find the opportunity to relate their
human resources to others; advancement based on merit and ensures the existence of
equal opportunity.
 Constitutionalism: The constitutionalism can be considered as hygiene factor. Though it
may not satisfy or motivate the human resources considerably but the absence of it
definitely felt by them and may have adverse effect.
 Work and Quality of Work: Organization needs to maintain a balance between work and
life away from work. Satisfactory work can influence the QWL of human resources
immensely. A challenging work, which utilizes the capabilities of human resources, plays
an important role in QWL.
Define the various models or theories of organizational behavior. Which one among them do
you think best for the organization?

The behavioral leadership theory focuses on how leaders behave, and assumes that these
traits can be copied by other leaders. Sometimes called the style theory, it suggests that
leaders aren't born successful, but can be created based on learnable behavior. Leadership
style refers to different types of leadership. Again, the overall pattern of a leader's behavior
from the employees' point of view is called the leadership style.

According to Keith Davis, the way a leader performs tasks in a team is called leadership style.
The success of any business organization is largely dependent on the type of leadership
exercised by its leader. The nature of the leader's relationship with the followers of the team
can be understood through this style. Leadership styles can be mainly divided into three
categories. Such categories are as follows.
A. Style Based on Motivation
B. Style Based on Power:
C. Supervisory Style (Supervisory Style)
D. Style Based on Formalities
Style Based on Motivation: The main task of a leader in the organization is to give motivation
to the worker at work. In this the workers are motivated to employ all their energies in the
execution of the work. The two approaches worth mentioning are positive leadership and
negative leadership. These are discussed below:

1. Positive Leadership: The attempt by a leader to motivate his followers by rewarding them is
called positive leadership. In this system followers are automatically engaged in the work
as financial or material rewards are arranged as a reward for their work.

2. Negative Leadership: When a leader instructs his followers to work hard and announces that
disciplinary action will be taken if they do not perform properly, it is called negative
leadership.

Style Based on Power: Style Based on Power is the type of leadership in which the leader
mainly uses the power he has received. It is called power- based style of leadership. This type
of leadership can be divided into different categories. Namely.
1. Autocratic Leadership: When the leader keeps all the powers to himself and plays the main
role in decision- making, it is called autocratic leadership. The leader himself has all the
power and decision making. In this case, the workers have to follow his instructions sincerely.

2. Participative or Democratic Leadership: The opposite of autocratic leadership is called

participatory or democratic leadership. In this type of leadership, power and authority are
decentralized among subordinates.

3. Paternalistic Leadership: In paternalistic leadership, a father- child relationship can be

observed between the leader and the followers. In this case, the leader is always kind to the
followers. Paternalistic leadership is essentially an improved version of autocratic leadership.

Supervisory Style (Supervisory Style): On the basis of supervisory style, leadership can be
divided into two. Such classifications are as follows
1. Employee Centered Leadership: In employee centered leadership, leaders are empathetic
towards the human needs of employees. Leaders are attentive to employees' attitudes,
interests, and needs.

2. Job Centered Leadership: The leadership in which more emphasis is placed on the job
than the employee is called Job Centered Leadership. Here employees are rewarded or
recognized according to work. But in this kind of leadership the human side of the
workers is completely ignored and always the workers are considered by their
performance.

Style Based on Formalities: According to organizational rules, leadership style can be

divided into two. Namely:
Organization and Management
1. Formal Leadership: If every subordinate worker is obliged to follow the rules and
regulations of the organization, it is called formal leadership.

2. Informal Leadership: Leadership that influences the behavior of team members is called
informal leadership. As a result, the party members voluntarily cooperate in any work of
the leader.
Situational theory of leadership in the context of an organization/Bangladesh:
The Situational Leadership Model provides a useful approach to leading this important
organizational transformation. Since doing business in a developing country like Bangladesh
is not an easy task. Here, a lot of restrictions come from government, tax authority, political
and religious beliefs which create versatile situation to the manager or business leader. these
situations affect business decision making and the leader make him fit to adapt the versatile
situations. The business leaders of Bangladesh have to follow the Situational Leadership
Model and it is an appropriate choice of leadership models given the degree to which it fits
the stages of change at the follower of analysis described by the Trans theoretical Model of
Change prevailing in Bangladesh.
 What is Quality of Work Life (QWL)? Major criteria for improving of QWL?

Quality of Work Life (QWL) refers to the favorableness and un favorableness of a total job
environment for the human resources. QWL program is a combination of activities that are
undertaken by an organization with a view to improving the conditions of human resources,
which affects an individual‘s experience with an organization. QWL programs focus on
security, safety and health, participation in decisions, opportunities to use and develop
talents and skills, meaningful work, control over work time or place.

The major criteria for improving and measuring Quality of Work Life include:
 Open Communication: Here organization gives free access to the information, which are
very much needed by the human resources for their decision making.
 Equitable Reward Systems and Adequate Compensation: Compensation plays a greater
role in the satisfaction of human resources. So, organization must evaluate how
adequate and rationale are pay and benefits in terms of helping human resources
maintain an acceptable standard of living for improving QWL.
 Safe and Healthy Environment: Physical-working conditions are the most important
aspect in measuring QWL. Human resources who spend a lot of time at their workplace
consider it an important factor.
 Opportunity for Careers Growth: Human resources seek career growth. They tend to
release from a job, which don‘t promise career growth. Organization must take it in
consideration that an individual is satisfied with his career and what career potential
exists in the job.
 Opportunity to Develop Human Capabilities: An individual is most satisfied, when he gets
an opportunity to use and develop his capabilities. So for measuring and introducing QWL
organization need to see to what extent does a job enable human resources to use and
develop their skills, knowledge and abilities and undertake tasks that are satisfying.
 Social Integration in the Work Place: An organization can possess supportive work groups
and interpersonal openness. Organization must find the opportunity to relate their
human resources to others; advancement based on merit and ensures the existence of
equal opportunity.
 Constitutionalism: The constitutionalism can be considered as hygiene factor. Though it
may not satisfy or motivate the human resources considerably but the absence of it
definitely felt by them and may have adverse effect.
 Work and Quality of Work: Organization needs to maintain a balance between work and
life away from work. Satisfactory work can influence the QWL of human resources
immensely. A challenging work, which utilizes the capabilities of human resources, plays
an important role in QWL.
What is Job Enrichment ? Benefits of Job Enrichment? (Kvh© mg„w× wK? Gi myweav)

Job enrichment is a strategy used to motivate employees by giving them increased responsibility
and variety in their jobs. Job enrichment is a management concept that’s involves re-designing
job so that they are more challenging to the employee and have less respective works.

In modern management job enrichment is mainly focused for human resources development.

Benefits of Job Enrichment are as follows:

Area Benefits
Individual 1. Growth
2. Self-actualization
3. Job satisfaction

Organization: 1. Intrinsically motivated human resource

2. Better human resource performance
3. Less absenteeism and turnover Fewer grievances.

Society 1. Full use of human resources

2. More effective organizations
Different between Hierarchical and Organic/Natural Organizational Design

Organizational design is often divided into two distinct styles: hierarchical and organic.
The table below shows some of the key characteristics of hierarchical and organic
designs
Hierarchical Organizational Design Organic Organizational Design

A hierarchical organization (‡kÖbx web¨vm An organic organization (‰Re msNVb) structure is

msNVb) is an organizational structure where every characterized by an extremely flat reporting structure
within an organization.
unit in the organization, except one, is subordinate to
another unit.
Mechanical organization structure emphasizes on It emphasizes on wide span of control.
narrow span of control.
It follows hierarchy of command. Organic organization structure does not
follow hierarchy of command
There is an intensive division of labor and work is The work is divided into general tasks and there is little
divided into specific tasks. or no specialization
People consider individual goals as different There is synchronization of individual goals with
from organizational goals organizational goals.

Control is exercised from the top There is self-control.

 (Module-E)
Organizational Ethics and Code of Conduct
Indicative Questions

1. Characteristics of Organizational Ethics?

2. Explain the concept of ethical leadership?
3. Explain the concept of Organizational Code of Conduct?
4. Perceive Code of Conduct in the context of the banking
industry?
Q 01. What do you understand by Organizational Ethics? Describe the ethicial principles?
Ans:
"Ethics is that discipline which deals with what is good and bad and also deal with moral duty and
obligation. Ethics are set of moral principles or values." Carol Buchholtz

"Ethics is a conception of right and wrong conduct. Ethics tell us when our behavior is moral and when it is
un-moral. Ethics deal with fundamental human relationship how we think and behave towards others and
how we want them to think and behave towards us." Post, Frederick, and Lawlrence

Business ethics:
“The rules, principles, and standards of deciding what is morally right or wrong when working.” So,
business ethics refers to the implementation of appropriate business practices and policies in the
workplace.

According to Andrew Crane, "Business ethics is the study of business situations, activities, and decisions
where issues of right and wrong are addressed."

According to Raymond C. Baumhart, "The ethics of business is the ethics of responsibility The business man
must promise that he will not harm knowingly."
There are the ethics of principles:

 Leadership: The conscious effort to adopt, integrate, and emulate the other 11
principles to guide decisions and behavior in all aspects of professional and personal
life.
 Accountability: Holding yourself and others responsible for their actions. Commitment
to following ethical practices and ensuring others follow ethics guidelines.
 Integrity: Incorporates other principles—honesty, trustworthiness, and reliability.
Someone with integrity consistently does the right thing and strives to hold themselves
to a higher standard.
 Respect for others: To foster ethical behavior and environments in the workplace,
respecting others is a critical component. Everyone deserves dignity, privacy, equality,
opportunity, compassion, and empathy.
 Honesty: Truth in all matters is key to fostering an ethical climate. Partial truths,
omissions, and under or overstating don't help a business improve its performance. Bad
news should be communicated and received in the same manner as good news so that
solutions can be developed.
 Respect for laws: Ethical leadership should include enforcing all local, state, and federal
laws. If there is a legal grey area, leaders should err on the side of legality rather than
exploiting a gap.
 Compassion: Employees, the community surrounding a business, business partners, and
customers should all be treated with concern for their well-being.
 Fairness: Everyone should have the same opportunities and be treated the same. If a practice
or behavior would make you feel uncomfortable or place personal or corporate benefit in
front of equality, common courtesy, and respect, it is likely not fair.
 Loyalty: Leadership should demonstrate confidentially and commitment to their employees
and the company. Inspiring loyalty in employees and management ensures that they are
committed to best practices.
 Environmental concern: In a world where resources are limited, ecosystems have been
damaged by past practices, and the climate is changing, it is of utmost importance to be
aware of and concerned about the environmental impacts a business has. All employees
should be encouraged to discover and report solutions for practices that can add to
damages already done.
Q . Explain the Important Characteristics of Organizational Ethics ?
Important Characteristics of Organizational Ethics
1. Organizational ethics are the principles, which govern and guide the management to
perform organizational functions in a discipline manner.
2. Organizational ethics continuously test the rules and moral standards and is dynamic in
nature
3. Organizational ethics is based on theological principles such as sincerity, human welfare,
service, and good behavior etc.
4. Organizational ethics is based on reality and social customs prevailing in business
environment. Many of the ethical principles develop the personal dignity
5. Organizational ethics studies the activities, decisions and behaviour which are related to
human beings and has universal application.
6. Organizational ethics keeps harmony between different roles of management and
employees, with customer, suppliers, investors, and society.
Q. Explain the concept of ethical leadership ? Why Is Ethical Leadership is Important?

Ans:
Ethical leadership is leadership that is directed by respect for ethical beliefs and values and
for the dignity and rights of others. It is related to concepts such as trust, honesty,
consideration, personality, and fairness.

Ethical leadership means both acting ethically and setting the standard for others to do so
as well. Leaders have an opportunity to inspire others not only to do the right thing but
also to consider the kind of people they want to be.

Top Characteristics of an Ethical Leader :

 The following are the most important characteristics of an ethical leader:
 Integrity and Accountability
 Driven by Values
 Transparency
 Zero Tolerance for Ethical Violations
Why Is Ethical Leadership is Important?
Ethical leadership is the most powerful factor in promoting overall organizational growth.
Here are some reasons ethical leaders are the essence of an organization:

1. Improves Company Image: By acting with integrity, ethical leaders represent their
organization in a positive light. Every decision they make is with the aim to improve the
well-being of employees and customers alike. This makes the company operate with a
sense of what is right. A great brand image then attracts valuable talent, customers, and
investors
2. Increases Loyalty: Customers and employees stick with companies led by ethical leaders.
These leaders operate with fairness and equality. When employees know they will be
treated well every step of the way, they will naturally not look elsewhere.

3. Keeps Scandals at Bay: Every corporate scandal comes with heavy financial, reputational,
and legal damages. By leading with empathy and keeping their doors open to their
employees’ grievances, ethical leaders never let minor issues turn into major disasters.
They adhere to the organization’s values and lead by example. This, in turn, keeps the
company’s compliance image spotless.
Q . Explain the concept of Organizational Code of Conduct?
Ans:
A code of conduct is a set of rules outlining the norms, rules, and responsibilities or proper
practices of an individual party or an organization.

A code of conduct is an essential guide outlining the principles, values, and behaviors
expected within a company, reflecting the company's culture and serving as a reference for
employees and stakeholders

The code of conduct is necessary, as it guides workplace behaviour, articulates the company's
values, boosts employee morale, measures employee success, and ensures adherence to the
law, creating a supportive and legal work environment.

In several instances, there are legal reasons for implementing a code of conduct as well. All
public organizations in several countries are required by law to have a code of conduct in
place.
A code of conduct should craft statements on values of the organization. Values in an
organization can be a deciding factor and draw for talented employees seeking a compatible
workplace; values are often what people see first when learning about an organization‘s
culture. It is expected to have statements to support the idea that the employees will be
receiving humanely and with empathy as valuable members of the working team.

Monitoring and conducting survey on the results of your code of conduct is a crucial process.
Organizations should regularly monitor and audit the implementation of their codes of
conduct, paying close attention to levels of compliance and effectiveness of enforcement
mechanisms. Organizations should share the results of these audits with their employees in
ways that respect the privacy of those involved. There should be regular review procedure of
the code of conduct. This may be necessary to reflect changes in the law, regulations, and
ethical norms. Employees should be invited to submit feedback on the code of conduct.
Q Perceive Code of Conduct in the context of the banking industry ?
Ans:
The Code of Conduct applies to all employees, permanent and contractual. When someone
joins the Bank he/she should review and understand and sign on the Code of Conduct and
therefore agree to comply with the guidelines. The Code should be practiced and promoted by
Management to lead the way for employees. Once set up, the Code of Conduct should be part
of the induction process and discussed with all new employees on joining.

The Code of Conduct is part of Employee Handbook and also very useful to keep on the Bank's
Web Portal so employees can access it any time they need to.
It is important to keep the Code up-to-date and therefore it should be reviewed at regular
interval, and disseminate the same to the employees after any change.

Banks handle depositors‘ money, and thus very sensitive. Maintaining public trust, addressing
clients with sincerity and respect, confidentiality of the information, and complying with the
regulations must get adequate focus in the Code of Conduct of a bank
The objective of this Code of Conduct (the "Code") is to define the behavior that the Bank
expects of its employees in order to safeguard the reputation enjoyed by the Bank and its
subsidiaries, by establishing rules of conduct with respect to confidentiality, conflict of
interest and professional conduct.

To achieve our goal and maintain the public's trust and preserve the quality of the work
environment, we must abide by the six basic principles below and apply them in our day-to-
day operations:

 Act honestly and with integrity

 Comply with the law
 Treat others with respect
 Safeguard the confidentiality of information
 Avoid conflicts of interest
 Respect the organization.
By adopting this Code, the Bank intends:
 To conduct business and operations in a fair, honest and ethical manner so as to assure
that the long-term interests of the shareholders, customers and other stakeholders are
served.
 To set out certain policies and principles for such fair, honest and ethical business
practices and behavior by which the Bank shall abide
 To increase transparency in the provision of banking services so as to enhance the
understanding of customers of what they can reasonably expect of the services provided
by the Bank.
 To improve the reputation, trust and confidence of the Bank and better protect its
stability in the banking sector.
Thank You.
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