Economic Factors: Wages, working conditions, and benefits.
Institutional Factors: Trade unions, employer associations, and labor laws.
Technological Factors: Automation, job displacement, and skill requirements.
Social/Psychological Factors: Employee morale, job satisfaction, and organizational culture.
Political Factors: Government policies and political stability.

5. State the types of formal organization? Write a short note on informal organization? (5 Marks)

A. Types of Formal Organization

Line Organization: Direct vertical flow of authority. Simple and fast decision-making.
Functional Organization: Authority flows from functional experts. High specialization.
Line and Staff Organization: Combines line authority (command) with staff authority (advice/support).
Matrix Organization: Dual reporting structure (functional and project).

B. Informal Organization (Short Note)

An Informal Organization is the network of personal and social relationships that spontaneously arises among employees who work together. It is not established by management but by the common interests, friendships, and shared values of the members.

Characteristics: Unofficial, based on emotion and personal relationships, has its own communication channels (the grapevine).
Importance: It satisfies the social and psychological needs of employees, provides a fast channel of communication, and can influence the formal organization's effectiveness (positively or negatively).

6. How can we describe the concept of job satisfaction? Why is satisfaction of employees so important to an organization? Mention a few factors which can affect the satisfaction of employees regarding their job? What is job evaluation? State its importance and advantages & limitations of job evaluation? (10 Marks)

A. Job Satisfaction

Job Satisfaction is the pleasurable emotional state resulting from the appraisal of one's job or job experiences. It is the extent to which people like (or dislike) their jobs.

B. Importance of Employee Satisfaction

Increased Productivity: Satisfied employees are generally more motivated and productive.
Lower Absenteeism and Turnover: High satisfaction leads to fewer unplanned absences and a lower rate of employees leaving the organization.
Improved Quality: Satisfied workers are more committed to producing high-quality work.
Better Industrial Relations: High satisfaction reduces grievances and conflicts, leading to harmonious relations.

C. Factors Affecting Job Satisfaction

Work Itself: The degree of challenge, interest, and variety in the job.
Pay and Benefits: The amount of compensation and its perceived fairness.
Supervision: The technical and human skills of the immediate supervisor.
Working Conditions: Physical environment, safety, and comfort.
Co-workers: The quality of social interaction with colleagues.
Promotion Opportunities: Perceived fairness and availability of career advancement.

D. Job Evaluation

Definition: Job Evaluation is a systematic process of determining the relative worth of a job in an organization. It is concerned with the job, not the person doing the job.
Importance: It provides a rational basis for developing a fair and equitable wage and salary structure.
Advantages: