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SRI SAI Collage Anteneh Mulugeta Master of Business Administration (MBA) Semester 1 MB0038 – Management Process and Organization Behavior - 4 Credits Assignment Set- 1 (60 Marks) Submitted by Anteneh Mulugeta Date: Aug 15 2011 MB0038 – Management Process and Organization Behavior - Assignment Set 1 Page 1 of 22

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Page 1: MB0038 - Assignment Set I

SRI SAI Collage Anteneh Mulugeta

Master of Business Administration (MBA)

Semester 1

MB0038 – Management Process and Organization Behavior - 4 Credits

Assignment Set- 1 (60 Marks)

Submitted by Anteneh Mulugeta

Date: Aug 15 2011

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Master of Business Administration-MBA Semester 1MB0038 – Management Process and Organization Behavior - 4 Credits

(Book ID: B1127)Assignment Set- 1 (60 Marks)

Note: Each question carries 10 Marks. Answer all the questions.

Q.1 Write a note on the characteristics of Management. [10]

Q.2 Discuss intellectual abilities in detail. [10]

Q.3 Explain the classification of personality types given by Sheldon. [10]

Q.4 What are the different barriers to perception? [10]

Q.5 Mr. Batra is the General Manager, HR of a leading Automobile company. He is having a meeting with Mr. Chandan, a leading HR consultant. Mr. Batra is concerned about creating an environment that helps in increasing job satisfaction among employees. Assume that you are Mr. Chandan, the HR consultant. What suggestions will you give to Mr. Batra, for creating an environment that increases job satisfaction? [10]

Q.6 Given below is the HR policy glimpse of “iMagine”, an advertising company 1. It offers cash rewards for staff members 2. It promotes the culture of employee referral and encourages people to refer people they know, maybe their friends, ex. colleagues, batch mates and relatives. 3. It recognizes good performances and gives fancy titles and jackets to the people who perform well and also felicitates them in the Annual Day of the company. What all aspects does it take care of, according to Maslow’s Need Hierarchy ? [10]

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Q.1 Write a note on the characteristics of Management. [10]

Management characterizes the process of planning, organizing, leading, controlling and directing all or part of an organization, often a business, through the deployment and manipulation of resources (human, financial, material, intellectual or intangible). It is an art of getting things done through other people. Some important characteristics of management are listed below.

1. Goal Oriented Management is a critical activity which co-ordinates the efforts of the employees to achieve the goals of the organization. Goal Setting is critical to constantly improve personal performance, employees' performance and the overall performance of the company. Goal Settings focus towards constant improvement. The success of the management is measured by the extent of the achievement of organizational goals which are well defined and properly understood by the managers at different levels.

2. Economic Resource Management is one of the factors of production, together with land, labour and capital. It is the most important and critical input for the success of any organization, acting as a force or catalyst in integrating the resources such as labour, capital and material, which otherwise cannot perform independently.

3. Distinct Process Management is a distinct process consisting of planning, organizing, staffing, directing and controlling. These functions are so important and inter- related that it is not possible to specify their sequence or relative significance. The process of management involves decision making and putting them into practice.

4. Integrative Force The main objective of management is integration of human and other resources for achieving the desired goals. Managers are provided with the resources, together with which, they apply their own knowledge, experience and management principles to extract results from the employees. Managers also seek to harmonize the individuals’ goals with that of the organization for smooth working of the establishment.

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5. Intangible Force Management has been called an unseen force. The orderliness of the efforts, informed and motivated employees, buoyant spirit and adequate work output provides the evidence of its presence.

6. Results through Others The managers cannot do everything themselves. One of their most challenging responsibilities is to keep the employees motivated to do the best job they can. The key for managers is the ability to assess motivational levels and to understand what they can do to get the work accomplished by others.

7. A Science and an Art Management is a science that has an organized body of knowledge consisting of well-defined concepts, principles and techniques which have wide applications. The application of this science requires the specialized knowledge and skill of the manager, which depends on his personal capability, thus making it an art.

8. System of Authority Management as a team of managers represents a system of authority, a hierarchy of command and control. Managers at different levels possess varying degrees of authority. Generally the degree of authority reduces as we move down the managerial hierarchy. Authority enables the managers to perform their duties effectively.

9. Multi-disciplinary Subject Management study has evolved from various other disciplines such as Engineering, Anthropology, Sociology and Psychology. For instance, Industrial engineering helped in productivity orientation, Psychology gave rise to human relations orientation and so on.

10. Universal Application Management is universal in character. The principles and techniques are applicable in all fields of life where human efforts are required such as business, education, military, hospital, etc.

Q.2 Discuss intellectual abilities in detail. [10]

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Intellectual abilities are those required to perform mental activities. Intelligence tests are formulated to assess intellectual ability of a person to suit the job profile. This helps to hire and retain the top performers. Thus increase the organization’s productivity, reduce employee turn- over and recruitment time. Intelligence test is a measure of general intellectual ability and is measured by assessing abilities on seven dimensions The seven intelligence dimensions by Dunnette(1976) are:

1. Mathematical Ability It requires a person, for example an accountant, to do speedy and accurate arithmetic.

2. Verbal Ability It is a measure of communication capabilities consisting of reading, writing and speaking and is measured by assessing abilities on six dimensions. The sub-dimensions contained within the communication skills are:

Communication Process Command on Vocabulary Assertive Communication Interpersonal Skills Persuasive Communication Critical Thinking Ability

3. Perceptual SpeedPerception is the insight, intuition, or knowledge gained by perceiving. It helps to identify similarities and differences quickly and accurately. However, perception is not limited to the physical act of seeing. It encompasses all the senses that are used to gather facts or observations. These are the abilities required to aspire for a career in investigation.

4. Inductive Reasoning (the ability to derive general rules from examples)Logical strength is defined as the property of an argument whose premises, if true provide support for its conclusion. Inductive and deductive arguments are also distinguished based on the point that logical strength is a matter of degree. Inductive arguments are those whose premises make it reasonable to accept the conclusion though do not absolutely guarantee its truth. A market researcher uses inductive reasoning.

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5. Deductive Reasoning (the ability to derive examples from general rules)Deductive arguments are those whose premises guarantee the truth of the conclusion. Deductive reasoning is somewhat different from an inductive argument for the conclusion cannot possibly be false if the premises are true. Deductive arguments are able to guarantee their conclusions because the logical strength doesn't depend upon the specific content but on their form or structure. A supervisor uses deductive reasoning since he follows the sequence of the work closely.

f. Spatial AbilitySpatial cognition is the processing of visual info in terms of their spatial relationships.   Spatial visualization, spatial orientation, and object and location memory comprise the three categories of spatial cognition.   Female superior spatial ability regarding object-location memory arises from the presumption that during human evolution, women gathered food and men hunted for it. Conversely, males have better understanding of spatial visualization and spatial orientation because hunting requires both of those skills.  

g. MemoryMemory is defined as the ability by which sense impressions and information are retained in the mind and subsequently recalled. A person's capacity to remember and the total store of mentally retained impressions and knowledge also formulate memory. Different jobs demand different levels of intellectual abilities for various positions in the organization. Various theories of intelligence were developed. Among them Gardener’s theory suggests eight different intelligences. The level of understanding things vary from person to person. The eight different intelligences are listed below.

1. Linguistic intelligence ("word smart"):2. Logical-mathematical intelligence ("number/reasoning smart")3. Spatial intelligence ("picture smart")4. Bodily-Kinesthetic intelligence ("body smart")5. Musical intelligence ("music smart")6. Interpersonal intelligence ("people smart")7. Intrapersonal intelligence ("self smart")

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8. Naturalist intelligence ("nature smart")

Advantages Highly reliable. Verbal reasoning and numerical tests have shown high

validity for a wide range of jobs. The validity rises with increasing complexity of the job. Combinations of aptitude tests have higher validities than

individual tests alone. May be administered in group settings where many

applicants can be tested at the same time. Scoring of the tests may be completed by computer scanning

equipment. Lower cost than personality tests.

Q.3 Explain the classification of personality types given by Sheldon. [10]

William Sheldon classified personality according to body type. He called this a person’s somatotype. Sheldon identified three main somatotypes: Endomorphy, Mesophorphy and Ectomorphy

Endomorphy – focused on the digestive system, particularly the stomach (endoderm); has the tendency toward plumpness, corresponds to Viscerotonia temperament tolerant, love of comfort and luxury, extravert.

Mesophorphy – focused on musculature and the circulatory system (mesoderm), has the tendency towards muscularity, corresponds to the Somatotonia temperament courageous, energetic, active, dynamic, assertive, aggressive, risk taker.

Ectomorphy focused on the nervous system and the brain (ectoderm) – the tendency towards slightness, corresponds to Cerebrotonia temperament artistic, sensitive, apprehensive, introvert.

On this basis, Sheldon created his very interesting Atlas of Men (Macmillan Pub Co; 1970) in which all possible body types are graded in a scale from 1 (low) to 7 (high), based on the degree to which they matched these types; with 4 as average). Each type is represented by a series of photos, and is given a comical or descriptive name, like "saber tooth tiger" for extreme mesomorph, "Baluchitherium" (the largest prehistoric land mammal) for

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mesomorph and endomorph, "Male Mosquito" for the extreme ectomorph, and so on. On this scale, the extreme or pure mesomorph has a score of 1-7-1, the pure endomorph 7-1-1, and the pure ectomorph 1-1-7. Most people of course are a combination of types.

a. Endomorphic Body Type: soft body underdeveloped muscles round shaped over-developed digestive system Associated personality traits: love of food tolerant evenness of emotions love of comfort sociable good humoured relaxed need for affection

b. Mesomorphic Body Type: hard, muscular body overly mature appearance rectangular shaped thick skin upright posture Associated personality traits: adventurous desire for power and dominance courageous indifference to what others think or want assertive, bold zest for physical activity competitive love of risk and chance

c. Ectomorphic Body Type: thin flat chest delicate build young appearance tall lightly muscled

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stoop-shouldered large brain Associated personality traits: self-conscious preference for privacy introverted inhibited socially anxious artistic mentally intense emotionally restrained

Sheldon measured the proportions of hundreds of juvenile delinquent boys and concluded that they were generally mesomorphs (Ornstein, 1993).

Body types have been criticized for very weak empirical methodology and are not generally used in psychology. The use of somatotyping (using different taxonomies) is used more often in alternative therapies and Eastern psychology and spirituality.

Q.4 What are the different barriers to perception? [10]

Perception can be defined as a process by which individuals select, organize and interpret their sensory impressions, so as to give meaning to their environment. Perception is a complex cognitive process and differs from person to person. People's behavior is influenced by their perception of reality, rather than the actual reality. Perceptions have a crucial role in individual decision-making in organizations, by affecting both the decisions as well as the quality of the decision. The decision taken by an individual is a complex process involving the intake of data, screening, processing, and interpreting and evaluating of data, based on the perception of the individual.

Individuals have a tendency to use a number of shortcuts when they judge others. An understanding of these shortcuts can be helpful toward recognizing when they can result in significant distortions.

1. Selective Perception

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Any characteristic that makes a person, object, or event stand out will increase the probability that it will be perceived. It is impossible for an individual to internalize and assimilate everything that is seen .Only certain stimuli can be taken in selectively. Selectivity works as a shortcut in judging other people by allowing us to “speed-read” others, but, not without the risk of drawing an inaccurate picture. The tendency to see what we want to see can make us draw unwarranted conclusions from an ambiguous situation.

2. Halo EffectThe halo effect (Murphy & Anhalt, 1992) occurs when we draw a general impression on the basis of a single characteristic. For example, while appraising the lecturer, students may give prominence to a single trait, such as, enthusiasm and allow their entire evaluation to be tainted by how they judge the instructor on that one trait which stood out prominently in their estimation of that person. Research suggests that it is likely to be most extreme when the traits to be perceived are ambiguous in behavioral terms, when the traits have moral overtones, and when the perceiver is judging traits with which he or she has had limited experience.

3. Contrast EffectsIndividuals do not evaluate a person in isolation. Their reaction to one person is influenced by other persons they have encountered recently. For example, an interview situation in which one sees a pool of job applicants can distort perception. Distortions in any given candidate’s evaluation can occur as a result of his or her place in the interview schedule.

4. ProjectionThis tendency to attribute one’s own characteristics to other people – which is called projection – can distort perceptions made about others. When managers engage in projection, they compromise their ability to respond to individual differences. They tend to see people as more homogeneous than they really are.

5. StereotypingStereotyping–judging someone on the basis of our perception of the group to which he or she belongs. Generalization is not without advantages (Hilton & Hippel, 1996). It is a means of simplifying a complex world, and it permits us to maintain consistency. The problem, of course, is when we inaccurately stereotype. In

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organizations, we frequently hear comments that represent stereotypes based on gender, age, race, ethnicity, and even weight. From a perceptual standpoint, if people expect to see these stereotypes, that is what they will perceive, whether or not they are accurate.

6. First-impression errorIndividuals place a good deal of importance on first impressions. First impressions are lasting impressions. We tend to remember what we perceive first about a person, and sometimes we are quite reluctant to change our initial impressions. First-impression error means the tendency to form lasting opinions about an individual based on initial perceptions. Primacy effects can be particularly dangerous in interviews, given that we form first impressions quickly and that these impressions may be the basis for long-term employment relationships.

7. Perceptual ContextThe context in which an object is placed influences perception. The organizational culture and structure provide the primary context in which workers and managers do their perceiving. Thus, a verbal order, a memo, a new policy, a suggestion, a raised eyebrow, or a pat on the back takes on special meaning and value when placed in the context of a work situation.

8. Perceptual DefenceAccording to the principle of perceptual defense, an individual is likely to put up a defence when confronted with conflicting, unacceptable, or threatening stimuli. The defence mechanisms put up by the perceiver may assume any of four forms: outright denial, modification of the data received, change in perception but refusal to change, and change in perception itself.

9. AttributionAttribution refers to the process by which the individual assigns causes to the behaviour he or she conceives. People are interested not only in observing behaviour in organization but in determining its causes. Their evaluation of and reactions to other’s behaviour may be heavily influenced by their perception that the others are responsible for their behaviour. For example, a nurse who drops a tray of medicine will be excused if the incident is perceived as caused by a slippery floor, rebuked if

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it is viewed to be caused by her clumsiness, and perhaps fired if it is viewed as a deliberate act.

Q.5 Mr. Batra is the General Manager, HR of a leading Automobile company. He is having a meeting with Mr. Chandan, a leading HR consultant. Mr. Batra is concerned about creating an environment that helps in increasing job satisfaction among employees. Assume that you are Mr. Chandan, the HR consultant. What suggestions will you give to Mr. Batra, for creating an environment that increases job satisfaction? [10]

Job satisfaction can be influenced by a variety of factors, e.g. the quality of one's relationship with their supervisor, the quality of the physical environment in which they work, degree of fulfilment in their work, etc.. Numerous research results show that there are many factors affecting the job satisfaction. There are particular demographic traits (age, education level, tenure, position, marital status, years in service, and hours worked per week) of employees that significantly affect their job satisfaction.

Satisfying factors motivate workers while dissatisfying ones prevent. Motivating factors are achievement, recognition, the job conducted, responsibility, promotion and the factors related to the job itself for personal development. Motivating factors in the working environment result in the job satisfaction of the person while protective ones dissatisfy him/her.

Maslow connects the creation of the existence of people's sense of satisfaction with the maintenance of the classified needs. These are: physiological needs (eating, drinking, resting, etc.), security needs (pension, health insurance, etc.), the need to love (good relations with the environment, friendship, fellowship, to love and to be loved), need to self esteem (self-confidence, recognition, adoration, to be given importance, status, etc.) need of self-actualization (maximization of the latent [potential] power and capacity, development of abilities, etc.).

Insufficient education, inability to select qualified workers for the job, lack of communications, lack of job definitions, all affect job satisfaction negatively. It has been asserted that participating in the management, having the decision making power, independence on the job and the unit where the individual works, have positive impact upon the job satisfaction.

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The job itself (the work conducted), and achievement and recognition at work result in satisfaction while the management policy, relations with the managers and colleagues result in dissatisfaction. Factors related to the job itself such as using talents, creativity, responsibility, recognition have influence on the job satisfaction.

Age is one of the factors affecting job satisfaction. Studies conducted in five different countries prove that the elder workers are more satisfied. Kose has also found a meaningful relation between the age and job satisfaction.

There is a strong connection between feeling secure and saying one is satisfied with a job.People who state their job is secure have a much larger probability of reporting themselves happy with their work. Similarly, by some researchers, sex is also found to have an influence on job satisfaction. Besides, Wahba has found out that male librarians give more importance to personal development and free decision making in their jobs than the female librarians, and the female librarians are more dissatisfied than the male librarians.

Job satisfaction and devotion to the job, affected each other reciprocally, and they have great impact upon performance. The most significant of the factors affecting performance are economical, technical, socio-political, cultural and demographical ones. However, most efforts to improve performance seem to center on improving the conditions surrounding the work. These are worthwhile efforts, but they usually result only in short-term improvements in attitudes and productivity, and the situation often returns quickly to normal.

There is no strong acceptance among researchers, consultants, etc., that increased job satisfaction produces improve job performance -- in fact, improved job satisfaction can sometimes decrease job performance. For example, you could let workers sometime sit around all day and do nothing. That may make them more satisfied with their "work" in the short run, but their performance certainly doesn't improve. The individual's willingness to get a result, his/her endeavour and expectation of maintaining the result will push him/her to show the highest performance.

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Job satisfaction varies a lot. (Researches suggests, the higher the prestige of the job, the greater the job satisfaction). But, many workers are satisfied in even the least prestigious jobs. They simply like what they do. Most workers like their work if they have little supervision. The least satisfied workers are those in service occupations and managers that work for others. Ethnic and religious orientation is associated to work attitudes, and job satisfaction is related to education.

The difference between the results that the individual desire and those she/he maintained will affect his/her satisfaction. There is a consistent relationship between the professional status and the job satisfaction. High levels of job satisfaction are observed in those professions which are deemed of good standing in the society.

The workers usually compare their working conditions with the conditions of the society, under the variable of social conditions. If the social conditions are worse than the individual's working conditions, then this will result in satisfaction of the individual, as the workers deem themselves relatively in good position.

Therefore, job satisfaction could be affected by age, professional experience, education level, training, salary, sex, working environment and member in professional group.

Q.6 Given below is the HR policy glimpse of “iMagine”, an advertising company 1. It offers cash rewards for staff members 2. It promotes the culture of employee referral and encourages people to refer people they know, maybe their friends, ex. colleagues, batch mates and relatives. 3. It recognizes good performances and gives fancy titles and jackets to the people who perform well and also felicitates them in the Annual Day of the company. What all aspects does it take care of, according to Maslow’s Need Hierarchy ? [10]

Abraham Maslow is a humanistic psychologist. Humanists do not believe that human beings are pushed and pulled by mechanical forces, either of stimuli and reinforcements (behaviorism) or unconscious instinctual impulses (psychoanalysis). Humanists focus upon potentials. They believe that humans strive for an upper level of capabilities. Humans seek the frontiers of creativity, the highest reaches of consciousness and wisdom. This has been labelled "fully

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functioning person", "healthy personality", or as Maslow calls this level, "self-actualizing person."

Maslow has set up a hierarchic theory of needs. All of his basic needs are instinctual, equivalent of instincts in animals. Humans start with a very weak disposition that is then fashioned fully as the person grows. If the environment is right, people will grow straight and beautiful, actualizing the potentials they have inherited. If the environment is not "right" (and mostly it is not) they will not grow tall and straight and beautiful.

Maslow has set up a hierarchy of five levels of basic needs. Beyond these needs, higher levels of needs exist. These include needs for understanding, esthetic appreciation and purely spiritual needs. In the levels of the five basic needs, the person does not feel the second need until the demands of the first have been satisfied, nor the third until the second has been satisfied, and so on. Maslow's basic needs are as follows:

Physiological NeedsFor the most part, physiological needs are obvious — they are the literal requirements for human survival. If these requirements are not met, the human body simply cannot continue to function.

Air, water, and food are metabolic requirements for survival in all animals, including humans. Clothing and shelter provide necessary protection from the elements. The intensity of the human sexual instinct is shaped more by sexual competition than maintaining a birth rate adequate to survival of the species.

Safety NeedsWith their physical needs relatively satisfied, the individual's safety needs take precedence and dominate behavior. In the absence of physical safety -- due to terrorist attack, war, natural disaster, or, in cases of family violence, childhood abuse, etc -- people (re-)experience post-traumatic stress disorder and trans-generational trauma transfer. In the absence of economic safety -- due to economic crisis and lack of work opportunities - these safety needs manifest themselves in such things as a preference for job security, grievance procedures for protecting the individual from unilateral authority, savings accounts, insurance policies, reasonable disability accommodations, and the like.

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Safety and Security needs include: Personal security Financial security Health and well-being Safety net against accidents/illness and their adverse impacts

Needs of Love, Affection and Belongingness

After physiological and safety needs are fulfilled, the third layer of human needs is social and involves feelings of belongingness. The need is especially strong in childhood and can over-ride the need for safety as witnessed in children who cling to abusive parents which is sometimes called Stockholm syndrome. The absence of this aspect of Maslow's hierarchy - due to hospitalism, neglect, shunning, ostracism etc - can impact individual's ability to form and maintain emotionally significant relationships in general, such as:

Friendship Intimacy Family

Humans need to feel a sense of belonging and acceptance, whether it comes from a large social group, such as clubs, office culture, religious groups, professional organizations, sports teams, gangs, or small social connections (family members, intimate partners, mentors, close colleagues, confidants). They need to love and be loved (sexually and non-sexually) by others. In the absence of these elements, many people become susceptible to loneliness, social anxiety, and clinical depression. This need for belonging can often overcome the physiological and security needs, depending on the strength of the peer pressure; an anorexic, for example, may ignore the need to eat and the security of health for a feeling of control and belonging. Needs for Esteem

All humans have a need to be respected and to have self-esteem and self-respect. Esteem presents the normal human desire to be accepted and valued by others. People need to engage themselves to gain recognition and have an activity or activities that give the person a sense of contribution, to feel self-valued, be it in a profession or hobby. Imbalances at this level can result in low self-esteem or an inferiority complex. People with low self-esteem need respect from others. They may seek fame or glory, which again

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depends on others. Note, however, that many people with low self-esteem will not be able to improve their view of themselves simply by receiving fame, respect, and glory externally, but must first accept themselves internally. Psychological imbalances such as depression can also prevent one from obtaining self-esteem on both levels.

Needs for Self-Actualization

“What a man can be, he must be.” (Abraham Maslow, Motivation and personality Harper and Row New York, New York 1954 pg 91).  This forms the basis of the perceived need for self-actualization. This level of need pertains to what a person's full potential is and realizing that potential. Maslow describes this desire as the desire to become more and more what one is, to become everything that one is capable of becoming. This is a broad definition of the need for self-actualization, but when applied to individuals the need is specific. For example one individual may have the strong desire to become an ideal parent, in another it may be expressed athletically, and in another it may be expressed in painting, pictures, or inventions. As mentioned before, in order to reach a clear understanding of this level of need one must first not only achieve the previous needs, physiological, safety, love, and esteem, but master these needs.

Therefore, according to “iMagine” HR policies, staff members physiological, safety, Love, Affection and Belongingness need and self- Esteem are fulfilled.

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