Write a note on ERG theory.

7. Write a note on ERG theory.

Ans – Clayton Paul Alderfer, an American psychologist, further developed Maslow’s hierarchy of needs theory by proposing what is known as the ERG theory. ERG stands for Existence needs, Relatedness needs and Growth needs. E, R and G represent different needs from the lowest level to the highest level. In this sense, it has similarities with the Hierarchy of needs theory, but there is an important difference between the two: As per the ERG theory, more than one level of needs can be activated at the same time. The existence needs as per the ERG theory correspond to the first two levels of the Hierarchy of needs theory: Physiological needs and Safety needs. The relatedness needs of the ERG theory are somewhat similar to the ‘Belonging and love’ needs (social needs) and to some portion of the Esteem needs of Maslow’s theory. The remaining portion of the Esteem needs (the self-esteem part) and the self-actualisation part of Maslow’s Hierarchy of needs theory are grouped as Growth need in the ERG theory. An implication of ERG theory to organisational behaviour is that if a higher order need is not satisfied, a person might try to get a lower level need satisfied in its place. For example, if an employee is neither able to derive job satisfaction from his work nor is he able to enjoy a comfortable relationship with his supervisors, he might demand higher wages.

8. Define group dynamics.

Ans – The term group dynamics contains two terms viz Group and Dynamics. Group is generally a collectively of two or more persons. Dynamics comes from a Greek word meaning ‘force’. Thus, Group Dynamics refers to the interaction of forces between group members in a social situation. Group Dynamics encompasses the dynamics of interaction patterns within the group, the subtle and the nonsubtle pressures exerted by group members, the manner in which decisions are made in the group, how work gets done and how members’ needs are satisfied. Understanding of all these enable managers to manage groups effectively, leading to organisational effectiveness. Cartwright and Zander(1968) observe that “group dynamics is a set of behavioural and psychological processes that occur within a social group or between groups. It refers to the nature of groups, the laws of their development, and their interactions with individuals, other groups and larger institutions”. Eminent theorists on group dynamics are Gustave LeBon, William Mc Dougall, Sigmund Freud, Jocob L, Moreno, Kurt Lewin, William Schutz, Bruce Tuckman, M.Scott Peek and Richard Hackman.

9. What do you mean by BATNA and ZOPA?

Ans – The term BATNA (Best Alternative to Negotiated Agreement) was coined by Roger Fisher and William Ury (1991) who first used it in their bestseller, Getting to Yes: Negotiating Without Giving In. The negotiator negotiates to get a result that is better than what he can get without negotiating. If there are a range of outcomes that are possible without a negotiation, one of them should be chosen as the best among them. It is the best alternative to the negotiated agreement and is called the BATNA for the negotiation in question. Suppose you are negotiating with a potential buyer the price of a house that you want to sell. You have been offered INR 70 lakh by the other party to the negotiation, whereas your hope is that you will be able to realise INR 80 lakh for the house. If you already have an offer from someone else to buy your house for INR 75 lakh, you have the option to sell it to him if the negotiation fails. Thus selling the house to that third party for INR 75 lakh is your BATNA. Only if you are offered anything above your BATNA (INR 75 lakh) during the negotiation, it is beneficial for you. If it is less than your BATNA, you should not concede, since you can walk away from the negotiation and can still sell the house for INR 75 lakh to the other party.

Now imagine that the opposite side in the negotiation (the party who wants to buy your house) has the option to buy a similar house in the same locality for INR 78 lakh. Buying that house for INR 78 lakh is his BATNA. Only if you offer your house to him at a price that is less than INR 78 lakh is he likely to accept your offer.

You are not likely to sell below INR 75 lakh (your BATNA). The other party is not likely to buy above INR 78 lakh (his BATNA). The deal will go through if the negotiated price falls in the range INR 75 lakh to INR 78 lakh. This range is called ZOPA (Zone of Possible Agreement) or the bargaining range.

10. Define stress management.

Ans – Stress management is defined as “a wide spectrum of techniques and psychotherapies aimed at controlling a person’s level of stress, especially chronic stress,” usually for the purpose of improving everyday functioning (from Wikipedia). This definition is quite comprehensive and includes negative as well as positive consequences of stress. In the terminology advocated by Hans Selye, ‘eustress’, is a stress whose consequences are helpful. Stress management and prevention must involve the development of strategies that comprehensively address the antecedents of work stress (psychological and organisational hazards) and their effects on employee health.

With a view to developing an effective stress management strategy, it is necessary first to identify the factors that are vital to a person controlling his stress, and to identify the intervention techniques which effectively target these factors. Lazarus and Folkman’s explanation of stress focuses on the transaction between people and their external environment known as the ‘Transactional Model’. This model maintains that stress may not act as stressor if a person does not see the stressor as a threat but rather as a positive or challenge stress. However, the stress effect is reversed once stress is handled properly.

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