A Term Paper on comparative analysis of

organizational behavior practices in Bangladesh

Group-8, Department of finance, University of Dhaka

 A Term Paper
On
Comparative analysis of organizational
behavior practices in Bangladesh

Submitted To

Nusrat Khan

Lecturer

Course No: F-301

Department of Finance

Submitted By

Group-08

BBA 15th Batch

Section: A

Department of Finance

University of Dhaka

DATE OF SUBMISSION

19th April, 2011

 Group profile of 9
Serial No Name Roll Marks

1 Prodip Somodder 15-087

2 Amit Sarker 15-0-125

3 Ataur Rahman 15-133

Bhuyan
4 Suvrota Acharjee 15-141

5 Shihab Karim 14-077

6. Md. Omar Faruq 15-256

7. Tuhin Rahman 13-254

LETTER OF TRANSMITAL
19th April, 2011
Nusrat Khan

Lecturer

University of Dhaka.

Sir:
We herewith present our “Term Report” authorized by you as a requirement for this
course. In this report, we have tried to provide comparative analysis on organizational
behavior practices in different organization.

To prepare this report, we have faced extensive one to one interaction with employees of
different levels of our chosen organizations. It has taught us the value of patience, and has
given us a higher insight on the level of communication in the practical world.

We have undertaken our sincere effort for successful completion of the term paper. If we have
any unintentional error and omission that may have entered into this term paper will be
considered with sympathy.

Therefore, it will be a great honor for us if you require us to explain any sort of queries.
We hope we have covered all that was required for the report.
If there be any clarification demanded, we would appreciate a call from you to our group
members.

Sincerely,

Suvrota Acharjee

Roll 15-141
 ACKNOWLEDGEMENT
In the different steps of preparing this report, we thank our course teacher for providing us
proper guidelines to prepare the report. We also thank her for assigning us such a practical
report that has boosted our knowledge from different aspects.

We are thankful and grateful to almighty Allah who has given us the strength
and ability to complete the report.
We are grateful to our classmates from whom we received cordial guidance,
suggestions for preparing this report.
We are also very much grateful to our group members because without their
perseverance, exertion and hardworking, this report will not be possible to make.
At last we thank Md. Alamgir Kabir,the head of the HR Department of EXIM bank & Asif
Iqbal, head of HR of Sonali bank , that provided us important tips in preparing this report.

This Term Paper is prepared by us to meet only for our academic purpose and not
for any other reason. It might not be used for the benefit of any other purpose.

Table of Contents
Figure & charts:
 Executive Summary

This report gives us an overview of the overall organizational behavior of Sonali Bank Ltd and
Exim Bank Ltd. It includes the administration and maintenance behavior of these two banks.

It mainly helps in observing operational behavior of these banks. It includes personality and
values, motivation procedures, decision making procedures, job satisfaction procedures,
organizational sufficiency, customer satisfaction, conflict and negotiation procedures followed
by the banks. Personality and Values refer to distinct personality and values obverted by
employees of these banks. Motivation procedures followed by them and outcomes of them.
Decision making procedures include how they reach rational decision. job satisfaction
procedures shows the outcomes of job satisfaction. Customer satisfaction involves tasks they do
to satisfy their customer and outputs of them. Finally conflict and negotiation analyze reasons
behind conflicts and find out the efficient way to resolve them.

To know the organizational behavior practices we worked on both Sonali Bank and EXIM bank
we have studied their day to day operations, studying their organizational profiles.

We compare their behavior and practices we observed closely and found they are highly
committed to customer satisfaction and quality improvement.
Introduction & Methodology
Introduction & Methodology
Introduction & Methodology
Background of the Report:
This report is prepared as a term paper assignment of Organizational behavior & Human resource
management development course F-301. In preparing this report at first we chose two companies “EXIM
Bank” & Sonali bank” .Then we collected the necessary information about the organizational behavior
practices through questionnaires and personal interview relevant for preparing our report. We also gave
our best efforts to emphasize on the information for our report completion

Objective of the Report:

Followings were the objectives of the study:

Broad objective: To develop the knowledge that how to implement the banking operations in
leading banking organizations like Sonali Bank, the largest govt. bank of Bangladesh and EXIM
Bank, one of largest private bank of Bangladesh.

Specific objectives: To attain the broad objective following specific objectives were pursued:

To know briefly about the organizational behavior Practices

To find out what are the activities of human resource manager
To know about the Practices in Bangladesh
And lastly how the banking organizations are operated in Bangladesh.

SCOPE

This assignment gave us the opportunity to go through the different organizational policies
and practices applied by Sonali Bank and EXIM Bank.
Methodology and Sources of Information

Information is collected from the websites.

Information is collected from our text book.

Visiting and searching information

Limitations:

Preparing the report we have faced the following limitations…

 Due to time constrains we were not able to collect all the necessary
information and show the proper implication of this information.
 When we went to the organizations some confidential was available and we
did not get adequate information we badly needed to prepare this report.
 The information we needed to implement our assignment is qualitative and
so it was difficult to obtain.
 We did not get any publication that can help us acquire information.
 Company profile of Sonali Bank

Sonali Bank Limited is a state-owned leading commercial bank in

BANGLADESH. It is the largest bank of the country.
After independence of the country Sonali Bank emerged as the
largest and leading Nationalized Commercial Bank by proclamation
of the Banks' Nationalization Order 1972 (Presidential Order-26)
liquidating the then National Bank of Pakistan, Premier Bank and
Bank of Bhwalpur. As a fully state owned institution.
Sonali Bank has a total of 1191 branches. Out of them, 488 are
located in urban areas, 696 in rural areas, and 2 are located
overseas. It also operates the Sonali Exchange Company Inc. in USA
and Sonali Bank (UK) Ltd to facilitate foreign exchange remittances.
Vision:
Socially committed leading banking institution with global
presence.
Mission:
Dedicated to extend a whole range of quality products that support
divergent needs of people aiming at enriching their lives, creating
value for the stakeholders and contributing towards socio-
economic development of the country.
 Company profile of Exim Bank

EXIM Bank is a scheduled bank in the private sector established

under the Bank Companies Act, 1991 and incorporates as a Public
Limited Company under companies Act, 1994 with paid-up capital
of TK 225.00 million.
The bank was incorporated on June 02, 1999 and started its
operation on the 3rd August in the same year. EXIM Bank, with its
major focus on export and import trade financing, development of
entrepreneurship and patronization of private sector provides both
conventional and Islamic commercial banking services.
At present EXIM Bank has 19 branches positioned at different
locations of the Bangladesh. 10 branches are located in Dhaka, 3
branches at Chittagong, another 2 branches at Narayangonj, and
the rest of branches are located at Sylhet, Gazipur, Noakhali, and
Commilla.
 Chapter -1 theory
Personality:
Personality is the sum total of ways in which an individual reacts
and interacts with others. In short, personality is measurable traits
a person exhibits.
Personality Traits
Personality traits encode some enduring characteristics that
describe an individual’s behavior. It means some special
characteristics that describe human nature.

Personality
Determinants
• Heredity
• Environment
• Situation

Myers-Briggs Type Indicator (MBTI)

The Myer-Briggs type indicator is the most widely used personality
assessment instrument in the world. It’s a 100-questions
personality test that asks people how they feel or act in particular
situation. It taps four characteristics and classifies people into 1 of
16 personality types.
 Personality Types

Extroverted vs. Introverted (E or I)

Sensing vs. Intuitive (S or N)

Thinking vs. Feeling (T or F)

Judging vs. Perceiving (P or J)

The Big Five Model of Personality Dimensions

Extroversion:
The extraversion dimension captures ones comfort level with
relationships . Extravagant trend to be Sociable, gregarious, and
assertive.
Agreeableness:
A personality dimensions that describes someone who is good
natured , cooperative and trusting.
Conscientiousness:
A personality dimensions that describes someone who is
Responsible, dependable, persistent, and organized.
Emotional Stability
A personality dimensions that describes someone who is Calm,
self-confident, secure under stress (positive), versus nervous,
depressed, and insecure under stress (negative).
Openness to Experience:
A personality dimensions that describes someone who is curious,
imaginative, artistic, and sensitive
Major Personality Attributes:

Core Self-evaluation :Individuals’ degree of liking or disliking themselves

Machiavellianism: A Degree to which an individual is pragmatic, maintains

emotional distance, and believes that ends can justify means

Narcissism: A personality trait that the tendency to be arrogant, have grandiose

sence of self importance,require admiration and entitlement .

Self-monitoring:A personality trait that measures an individual’s ability to adjust

his or her behavior to external, situational factors.

Risk taking: Individuals’ degree of taking risks themselves

Type A vs. Type B personality: A comparative discussion of human nature.

Proactive Personality: it Identifies opportunities, shows initiative, takes action,

and perseveres until meaningful change occurs

Core Values, Sustainable Values and Attitudes

Values may be defined as those qualities that an individual or society considers important as

Principles for conduct and that are intrinsically worthwhile. Values may be broadly categorized as

Core and sustaining values. They are fundamental to the formation of attitudes, which in turn affect the
acquisition and application of values. An elaboration of these terms is provided below:

"Values constitute the foundation of one’s attitudes and beliefs, which subsequently influence

One’s behavior and way of life. Values can vary across societies, as different social and economic

Conditions in different geographical locations may lead to different value emphases. However,

across societies, we can also identify certain values that are commonly or universally emphasized.

The emergence of these universal values illustrates the common concerns of human societies,

the basic qualities for human existence, the common elements in human civilization, and also

the common characteristics of human nature…we call these universal values core values

." And sustaining values are "other values that are also important at an instrumental level, being

regarded as important or helpful for sustaining the core values.

The following set of core and sustaining values and attitudes are proposed for incorporation

in the school curriculum

Comparative analysis:
We have gone through a practical analysis of the values practicing in Bangladeshi organization . we have
found that values are regarded as most important element prevailing in the organization . There are 7
values that have impact on Exim bank & sonali bank. These are
1.Self respect

2.Family security

3.freedom
4.A sense of accomplishment

5.Happiness

6.Responsibility

7.Ambition

10
9
8
7
6
5
4 Sonali
3 Exim
2
1
0
ct ity m t ss y n
pe ur do en ne ilit tio
re
s ec ee h m
pp
i is b bi
lf s fr lis ha
n am
se il y p po
m co
m r es
fa ac

Chapter -2 theory
Motivation
Motivation is the processes that account for an individual’s
intensity, direction, and persistence of effort toward attaining
a goal.

Hierarchy of Needs Theory:

Hierarchy of Needs Theory describes that there are two basic

types of human needs. one is lower needs that are basic
human needs and other are upper needs that are needed to
compensate human self actualization.

Se
lf
Esteem

Social

Safety

Physiological
Theory X & Theory

Having Little Ambition

Disliking Work

Avoiding Responsibility

Self-Directed

Enjoying Work

Accepting Responsibility
Two-factor theory

A theory that relates intrinsic factor to job satisfaction and associates extrinsic
factors with dissatisfaction.
McClelland’s theory of need:

Need for achievement

Need for power
Need for affiliation

Need for achievement is the drive to excel, to achieve in relation to a set of standards, to
strive to succeed. Need for affiliation is the desire for friendly and close personal relationships.
Need for power is the need to make others behave in a way that they would not have behaved
otherwise.

Cognitive evaluation theory:

A theory that states that allocating extrinsic reward for behavior that had been previously intrinsically
rewarding trends to decrease the overall level of motivation.

Goal setting theory:

A theory that says that specific and difficult goal with feedback lead to higher performance.

Self efficiency theory:

An individual’s belief that he or she is capable of performing a task.

Enactive Mastery

Vicarious Modeling

Verbal Persuasion

Arousal

Reinforcement theory:
A theory that says that behavior is a function of its consequence.

Equity theory:
A theory that says that individuals compare their job input and outcomes with those of other and then
responds to eliminate any inequity

Expectancy theory: A theory that describes that a person at first believe that he can do, then he do, if he
is rewarded then When he is rewarded, the reward will be something that he cares about.

Job Characteristics Model

Identifies five job characteristics and their relationship to personal and work outcomes.

Characteristics:
1. Skill variety
2. Task identity
3. Task significance
4. Autonomy

Job redesign:
1. Job rotation: public company uses

2. Job enlargement: public company uses

3. Job enrichment: public company uses

Employ involvement
1. Participative management: The uses of joint decision making.

2. Representative participation: Workers participation in organizational decision making through

small group of representative employees.

3. Quality circle: A work group of employees, who meet regularly to discuss their quality
problems, investigate causes, recommend solutions, and take corrective actions
How to rewarding individual employees through variable pay
programmed.
1. Price rate pay: Workers are paid a fixed sum for each unit of production completed

2. Marit based pay: a payment on the basis of skill and merit.

3. Bonuses: occasional increment.

4. Bill based pay: A payment system on the basis of certain workings.

5. Profit-sharing plans: Organization wide programs that distribute compensation based on

some established formula designed around a company’s profitability.

6. Gain sharing: An incentive plan in which improvements in group productivity determine the
total amount of money that is allocated.
Comparative analysis:
 Chapter -3 theory
DECISION MAKING PROCESS IN SONALI
BANK
Simple decisions usually need a simple decision-making process. But difficult decisions typically
involve issues like these:

 Uncertainty - Many facts may not be known.

 Complexity – They have to consider many interrelated factors.
 High-risk consequences - The impact of the decision may be significant.
 Alternatives - Each has its own set of uncertainties and consequences.
 Interpersonal issues - It can be difficult to predict how other people will react.

With these difficulties in mind, the best way in which Sonali Bank takes a complex decision is to
use an effective process. Clear processes usually lead to consistent, high-quality results, and
they can improve the quality of almost everything we do. Here, we outline a process that will
help us to have a clear idea about the decision making process in the Sonali bank.

A SYSTEMATIC APPROACH TO DECISION MAKING IN SONALI BANK

A logical and systematic decision-making process helps you address the critical elements that
result in a good decision. By taking an organized approach, they're less likely to miss important
factors, and they build on the approach to make their decisions better and better.

There are six steps to making a decision in Sonali bank:

1. Creating a constructive environment.

2. Generating good alternatives.
3. Exploring these alternatives.
4. Choosing the best alternative.
5. Checking their decision.
6. Communicating their decision, and taking action.
Here are the steps in detail:

STEP 1: CREATING A CONSTRUCTIVE ENVIRONMENT

To create a constructive environment for successful decision making, they make sure do the
following:

 Establishing the objective - Defining what they want to achieve.

 Agreeing on the process - Knowing how the final decision will be made, including
whether it will be an individual or a team-based decision.
 Involving the right people - Stakeholder Analysis is important in making an effective
decision, and they want to ensure that they consult stakeholders appropriately even if
they're making an individual decision. Where a group process is appropriate, the
decision-making group - typically a team of five to seven people - should have a good
representation of stakeholders.
 Allowing opinions to be heard - They encourage participants to contribute to the
discussions, debates, and analysis without any fear of rejection from the group. This is
one of the best ways to avoid groupthink. The Stepladder Technique is a useful method
for gradually introducing more and more people to the group discussion, and making
sure everyone is heard. Also, they recognize that the objective is to make the best
decision under the circumstances: it's not a game in which people are competing to
have their own preferred alternatives adopted.
 Making sure they're asking the right question - The 5 Whys technique is a classic tool
by which they identify the real underlying problem that they face.

STEP 2: GENERATING GOOD ALTERNATIVES

When they generate alternatives, which force themself to dig deeper, and look at the problem
from different angles. They use the mindset ‘there must be other solutions out there, and
they're more likely to make the best decision possible. If they don't have reasonable
alternatives, then there's really not much of a decision to make!

Here's a summary of some of the key tools and techniques they use to develop good
alternatives.

GENERATING IDEAS

 They use the democratic method to generate ideas from a large number of
people. They believe that this is an extremely effective way to make sure that
 everyone's ideas are heard and given equal weight, irrespective of the person's
position or power within the organization.

CONSIDERING DIFFERENT PERSPECTIVES

 The Reframing Matrix uses 4 Ps (product, planning, potential, and people) as the
basis for gathering different perspectives. They also ask outsiders to join the
discussion, or ask existing participants to adopt different functional perspectives
(for example, have marketing people spoken from the viewpoint of a financial
manager).
 If they have very few options, or an unsatisfactory alternative, they use a
Concept Fan to take a step back from the problem, and approach it from a wider
perspective. This often helps when the people involved in the decision are too
close to the problem.
 Appreciative Inquiry forces them to look at the problem based on what's ‘going
right,' rather than what's ‘going wrong.'

ORGANIZING IDEAS

 They use this when they have a large number of ideas. Sometimes separate ideas
can be combined into one comprehensive alternative.

STEP 3: EXPLORING THE ALTERNATIVES

When they're satisfied that you have a good selection of realistic alternatives, then they
evaluate the feasibility, risks, and implications of each choice. Here, we discuss some of the
most popular and effective analytical tools they generally use.

RISK

In decision making, there's usually some degree of uncertainty, which inevitably leads to
risk. By evaluating the risk involved with various options, they determine whether the
risk is manageable.

 Risk Analysis helps them look at risks objectively. It uses a structured approach
for assessing threats, and for evaluating the probability of events occurring - and
what they might cost to manage.
 Impact Analysis is a useful technique for brainstorming the ‘unexpected'
consequences that may arise from a decision.
VALIDATION

They determine if resources are adequate, if the solution matches their objectives, and
if the decision is likely to work in the long term.

 Cost-Benefit Analysis looks at the financial feasibility of an alternative.

STEP 4: CHOOSING THE BEST ALTERNATIVE

After they have evaluated the alternatives, the next step is to choose between them. The
choice may be obvious. However, if it isn't, the following tools help them:

 Grid Analysis, also known as a decision matrix, is a key tool for this type of evaluation.
It's invaluable because it helps them bring disparate factors into their decision-making
process in a reliable and rigorous way.
 They use Paired Comparison Analysis to determine the relative importance of various
factors. This helps them compare unlike factors, and decide which ones should carry the
most weight in their decision.
 They use Decision Trees which are also useful in choosing between options. These help
you lay out the different options open to you, and bring the likelihood of project success
or failure into the decision making process.

For group decisions, there are some excellent evaluation methods available.

When decision criteria are subjective and it's critical that they gain consensus, they use
techniques like Nominal Group Technique and Multi-Voting. These methods help a group agree
on priorities, for example, so that they can assign resources and funds.

The Delphi Technique uses multiple cycles of anonymous written discussion and argument,
managed by a facilitator. Participants in the process do not meet, and sometimes they don't
even know who else is involved. The facilitator controls the process, and manages the flow and
organization of information. This is useful where you need to bring the opinions of many
different experts into the decision-making process. It's particularly useful where some of these
experts don't get on!
STEP 5: CHECKING THEIR DECISION

The first part of this is an intuitive step, which involves quietly and methodically testing the
assumptions and the decisions they've made against their own experience, and thoroughly
reviewing and exploring any doubts they might have.

A second part involves using a technique like Blindspot Analysis to review whether common
decision-making problems like over-confidence, escalating commitment, or groupthink may
have undermined the decision-making process.

A third part involves using a technique like the Ladder of Inference to check through the logical
structure of the decision with a view to ensuring that a well-founded and consistent decision
emerges at the end of the decision-making process.

STEP 6: COMMUNICATING THEIR DECISION, AND MOVING TO ACTION!

Once they've made their decision, it's important to explain it to those affected by it, and
involved in implementing it. They talk about why they chose the alternative they did. They
know that the more information they provide about risks and projected benefits, the more
likely people are to support the decision.
 Chapter -4 theory
Job satisfaction: job satisfaction is a general or global affective reaction that
individuals hold about their job. While researchers and practitioners most often measure
global job satisfaction, there is also interest in measuring different "facets" or
"dimensions" of satisfaction. Examination of these facet conditions is often useful for a
more careful examination of employee satisfaction with critical job factors. Traditional
job satisfaction facets include: co-workers, pay, job conditions, supervision, nature of the
work and benefits."

Creating Job Satisfaction

So, how is job satisfaction created? What are the elements of a job that create job satisfaction?
Organizations can help to create job satisfaction by putting systems in place that will ensure that
workers are challenged and then rewarded for being successful.Organizations that aspire to creating a
work environment that enhances job satisfaction need to incorporate the following:

•Flexible work arrangements, possibly including telecommuting

•Training and other professional growth opportunities

•Interesting work that offers variety and challenge and allows the worker opportunities to "put his or
her signature" on the finished product

•Opportunities to use one's talents and to be creative

•Opportunities to take responsibility and direct one's own work

•A stable, secure work environment that includes job security/continuity

•An environment in which workers are supported by an accessible supervisor who provides timely
feedback as well as congenial team members

• Flexible benefits, such as child-care and exercise facilities

•Up-to-date technology

•Competitive salary and opportunities for promotion

Probably the most important point to bear in mind when considering job satisfaction is that there are
many factors that affect job satisfaction and that what makes workers happy with their jobs varies
from one worker to another and from day to day. Apart from the factors mentioned above, job
satisfaction is also influenced by the employee's personal characteristics, the manager's personal
characteristics and management style, and the nature of the work itself. Managers who want to
maintain a high level of job satisfaction in the work force must try to understand the needs of each
member of the work force.

Organizational structure analysis:

Organizational structure have a powerful affect on organizational behavior .

Involvement with the organization:

Job involvement is very important for any organization. If employees realize that they are
not only a payee but also a part they do their level best to serve the organization. I n early
Bangladesh job involvement practices are not practiced in govt offices but they are now
practicing job involvement. Sonali bank is now trying to practice job involvement. Exim
bank is now a good condition about job involvement.

Job involvement
Sonli Exim

33%

67%

Organizational sufficiency
The structure of sonali bank is very wide but this in not provide that it is not sufficient in
technical tools ,the implementation of technology is very poor. But Exim bank don’t have
multiple branches like Sonali but it has high implementation of technology. The latest material,
fixture, fittings, computers, internet banking software processor etc are sufficient in EXIM Bank which
makes the employees give positive attitude towards their job whereas the reverse is found in Sonli Bank
due to the lacking of equipments and materials

Sufficiency
12
10
8 exim
Sonali
6
4
2
0
Technoly Manpower

Involvement in decisions affecting organizational

Decisions that affect organizational community is a growing discipline to help employees become
better positioned to understand how the decision making process can affect individuals at a cognitive
level. Performance improvement is intimately linked to this. Maximum number of employees of EXIM
Bank and sonali bank feel involve in this decision

organizational community
Sonali Exim

45%
55%

Managerial activities:
We see that managers of the sonali bank are too much involved in traditional
management. They give a small attention on communication but do a little bit
human resource management and don’t do any kind of networking. The managers
of exim bank ,give more attention on communication , then HRM, and others.

Sonali bank Exim bank

traditional management traditional communication
commucation Hrm Networking
Human resouce management 11%
Networking 19%
19% 26%
32%
44%
20%
29%

Reviewing Progress by manager

There is no such significant deviation is found in this case so managers in both organizations can be
called sincere and responsible which helps employee to be productive.

feedback

Sonali
Exim

Overall Productivity in getting job done: Most of the employees of EXIM bank vote
themselves GOOD in this criteria whereas a good no employees vote for EXCELLENT. IN Sonali Bank
AVERAGE result is found for maximum no of employees though a small percentage goes for EXCELLENT
and GOOD regarding overall productivity in getting done.

70
60
50
40 Excelent
30 Good
20 bad
10
0
sonali exim

Responding towards customer’s need:

Maximum no. of employees of EXIM Bank are strongly agree that they respond towards their
customer’s need although some of them are somewhat agree in fulfilling their customer’s need.

In Sonali bank, most of the employees are also strongly agree on responding towards their
customer’s need .Also strongly disagree is found in this criteria unlike EXIM Bank.

Feeling valued and affirmed at work

Senior officer of Sonali bank said “When significant people in our lives listen, value our contribution
and reward us appropriately, we feel valued”.  So, feeling valued and affirmed at workplace directly
impacts employees senses of self-awareness and self-esteem, creating a positive self-image that allows
them to work to their full potential.

Both the employees of EXIM Bank and Sonali bank have the feeling that they are valued at their
workplace.
 sonali
BANK

Yes

Feeling free to do the things at work

Workplace boredom can be as stressful and damaging as overwork - perhaps more so. Both the
employees of EXIM Bank and JANATA Bank have the feeling that they feel free to do things at work. But
reversely an equal percentage is also gone for their negative answer that they don’t feel free to do
things at workplace

EXIM
BANK
sonali
BANK

Individual values fit the organizational values

Accurately measuring an individual's value system and contrasting this with the organization's culture
can be helpful in diagnosing performance issues. All the employees of EXIM Bank have the feeling that
their values fit organizational values whereas only a few percentages of employees of JANATA Bank have
the same feeling.A huge percentage of employees of JANATA Bank are disagree with this statement.

EXIM
BANK
Sonali
BANK
Creativity and innovation are supported

Creativity and innovation are often key to the success of a business, particularly when strategizing during
strategic planning. Maximum percentages of employees of EXIM Bank have the feeling that their bank
support creativity and innovation and only a small percentage deny it. But in JANATA Bank all the
employees don’t agree that their organization support creativity and innovation.

EXIM
BANK
Sonali
BANK

Knowing what is expected from the individuals

All the employees of EXIM Bank know that what is expected from him or her at workplace. In Sonali
bank though most of the employees know what is expected from him or her at workplace some of them
are disagree with this statement.

EXIM
BANK
Sonali
BANK
Having the opportunity of doing best every day at work

All the employees of EXIM Bank thin that they have the opportunity of doing best every day at work.
Though most of the employees of Sonali bank also think that some of them have negative thinking
regarding this statement.

EXIM BANK
Sonali BANK

Knowing someone at work who encourages development

If some people remains at workplace who value self-esteem of others by giving praise for good work and
caring about their development as a person, it would work as a great motivation. Both the employees of
EXIM Bank and Sonali bank have the positive concern regarding this statement.

EXIM BANK
SOnaliBANK
Going beyond expectations to make customers happy

The employees of JANATA Bank work as much as is expected from them but they never go beyond this
whereas a variation is found among EXIM Bank’s employees. Some of them sometimes go beyond their
expectation and some of them always try to do that and some of them do what is expected from them.

Yes, I always do so
100%
90%
80% Yes, occasionally
70%
60%
I work as much as
50%
is expected of me
40%
30%
I work less than
20% what is expected of
10% me
0% N/A
EXIM BANK Sonali BANK

Job satisfaction
100% Energy level to care
people at the end of
w orking day
Energy level to engage
90% in personal interest at
the end of w orking day
Having time time and

80% energy to read books

af ter of f ice hours
Having good f riends at
w ork
70%
Feeling valued and
af f irmed at w ork

60% Feeling recognized and

appreciated at w ork

Trust in leadership
50% team

Opportunity to do best

40% everyday at w ork

Fairly compensated

30%
Opportunities to learn

20% Feeling inf ormed about

w hats going on

Having opportunity of
10% doing best everyday at
w orkplace
Mangers cares as a
0% person

EXIM BANK JANATA BANK

Exim Sonali bank

 Chapter -5
Conflict and Negotiation
We know conflict can be a serious problem in an organization. It can create chaotic conditions
that make it impossible for employees to work together. However, conflict also has a less-well-
known positive side. Now throughout our discussion we are going to show the difference
between negative and positive conflicts.

Conflict: Definition
Conflict is a process that begins when one party perceives that another party has negatively affected, or
is about to negatively affects, something that the first party cares about.

Transitions in Conflict Thought

There are several views over the role of conflict in groups and organizations. They are discussed below:

1. Traditional View of Conflict: The belief that all conflict is harmful and must be avoided.
2. Human Relations View of Conflict: The belief that conflict is a natural and inevitable outcome in
any group.
3. Interactionist View of Conflict: The belief that conflict is not only a positive force in a group but
that it is also an absolute necessity for a group to perform effectively.

The Conflict Process

A process with five stages:
Stage 1-Potential
Opposition or
incom patibility:
incompatibility: Stage 2-Cognition
Antecedent Stageand
4- Behaviour:
conditions Personalisation:
*Party's Behaviour
*Com m unication
*Communication *Perceived Conflict
*Others Reactions
*Structure *Felt Conflict. Stage 3-Intentions
*Personal *Com peting
*Competing
variables. *Collaborating
*Com prom ising
*Compromising
Stage 5-Outcomes:
5-Outcom es: *Avoiding
*Increased Group *Accom m odating.
*Accommodating.
Perform ance
Performance
*Decreased Group
Perform ance
Performance
 HOW TO MANAGE CONFLICT IN AN ORGANIZATION

CONFLICT RESOLUTION TECHNIQUES

Problem Solving Face-to-face meeting of the conflicting parties for the purpose of identifying
the Problem and resolving it through open discussion.
Super ordinate Goals Creating a shared goal that can’t be attained without the co-operation of
Each of the conflicting parties.
Expansion of Resources When a conflict is caused by the scarcity of resource—say, Money, Promotion
Opportunities, Office space—expansion of resource can create a win-win
Situation.
Avoidance Withdrawal from or suppression of the conflict.

Smoothing Playing down differences while emphasizing common interest between the
Conflicting parties.
Compromise Each party to the conflict gives up something of value.

Authoritative Command Management uses its formal authority to resolve the conflict and then
Communicates its desires to the parties involved.
Altering the Human
Variable Using behavioral change techniques such as Human Relations training to alter
Attitudes and behaviors that cause conflict.

Altering the Structural Changing the formal Organization structure and the interaction patterns of
Variable conflicting parties through job redesign, transfers and the like.

Conflict Stimulation Techniques

Communication Using ambiguous threatening messages to increase conflict levels.
Bringing in Outsiders Adding employees to a group whose backgrounds, values, attitudes ,
Managerial styles differ from those of present members.
Restructuring the
Organization Realigning work groups , altering rules and regulations, increasing
Interdependence and making similar structural changes to disrupt the status
Quo.
Appointing a Devil’s
Advocate Designating a critic to purposely argue against the majority positions held by
The group.
NEGOTIATION
A process in which two or more parties exchange goods or services and attempt to agree on the
exchange rate for them. There are two general approaches to Negotiation:

1. Distributive Bargaining: Negotiation that seeks to divide up a fixed amount of resources, a win-win
situation.
2. Integrative Bargaining: Negotiation that seeks one or more settlements that can create a win-win
situation.

NEGOTIATION PROCESS:
The negotiation process is made up of five steps.
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 ISSUES OF NEGOTIATION

There are four contemporary issues in Negotiation.

1. The Role of Mood and Personality Traits in Negotiation: Negotiators who are in positive moods negotiate
better outcomes than those who are in average moods.
2. Gender Differences in Negotiations: Do men and women negotiate differently? And does gender affect
negotiation out comes? The answer to the first question appears to be No. The answer to the second is a
qualified Yes.
A popular stereotype held by many is that women arm or cooperative and pleasant in negotiation
than are men. The evidence does not support this belief.
3. Cultural Differences in Negotiations: Negotiations styles clearly vary across national cultures. The French
like conflict. They frequently gain recognition and develop their reputation by thinking and acting against
others. The Chinese also draw out negotiations but that’s because they believe negotiations never end.
4. Third Party Negotiations: Occasionally individuals or group representatives reach a stalemate and are
unable to resolve their differences through direct negotiations. In such cases , they may turn to a third
party to help them find a solution. There are four basic third party roles:

i.Mediator

ii. Arbitrator

iii. Conciliator

iv. Consultant.

STAGE 1: POTENTIAL OPPOSITION OR INCOMPATIBILITY

The first step in the conflict process is the presence of conditions that create opportunities for conflict to
arise. They need not lead directly to conflict, but one of these conditions is necessary if conflict is to
surface. For simplicity’s sake, these conditions have been considered into three general categories:

1. Communication
2. Structure
3. Personal Variables.

STAGE 2: COGNITION AND PERSONALIZATION

This stage is Important because it is where conflict issues tend to be defined. This is the place in the
process where the parties decide what the conflict is about. It has two general categories:

1. Felt Conflict
 2. Perceived Conflict

STAGE 3: INTENTIONS
Intentions are decisions to act in a given way. Intentions intervene between people’s perceptions and
emotions and their overt behavior. In addition, there is typically a great deal of slippage between
intentions and behavior, so behavior does not always accurately reflect a person’s intentions.

Five conflict handling intentions can be identified:

1. Competing
2. Collaborating
3. Avoiding
4. Accommodating
5. Compromising

STAGE 4: BEHAVIOR
The behavior stage visualizes the conflict. This stage includes the statements, actions and reactions
made by the Conflicting parties. These conflict behaviors are usually overt attempts to implement each
party’s intentions. But these behaviors have a stimulus quality that is separate intentions. As a result of
miscalculations or unskilled enactments, overt behaviors sometimes deviate from original intentions.

STAGE 5: OUTCOMES
The action-reaction interplay between the conflicting parties results in consequences. Outcomes may be
functional in that the conflict results in an improvement in the group’s performance, or dysfunctional in
that in hinders group performance. So outcomes are of two types:

1. Functional Outcomes
2. Dysfunctional Outcomes