Q$\mathrm{.}5$ Set. $($A$)$ Read the below case study and answer the two questions

Case study

Thirty years ago, Drivein $24$ was a small city $($about $70,000$ residents$)$ that served as an outer suburb to a large metropolitan city. The municipality of Drivein $24$ treated its employees like family and gave them a great deal of autonomy in their work. Everyone in the organization $($including the two labor unions representing employees$)$ implicitly agreed that the leaders and supervisors of the organization should rise through the ranks on the basis of their experience. Few people were ever hired from the outside into middle or senior positions. The rule of employment at Drivein $24$ was to learn the job skills, maintain a reasonably good work record, and wait your turn for promotion.

Drivein $24$ grew rapidly over the past three decades. As the population grew, so did the municipality$$s workforce to keep pace with the increasing demand for municipal services. This meant that employees were promoted fairly quickly and were almost assured guaranteed employment. In fact, until recently, Drivein $24$ had never laid off any employee. The organization$$s culture could be described as one of entitlement and comfort. Neither the elected city councilors nor the city manager bothered the departmental managers about their work. There were few cost controls because the rapid growth placed more emphasis on keeping up with the population expansion. The public became somewhat more critical of the city$$s poor service, including road construction at inconvenient times and the apparent lack of respect some employees showed toward taxpayers.

During these expansion years, Drivein $24$ put most of its money into $$outside$($also called $$hard$)$ municipal services. These included road building, utility construction and maintenance, fire and police protection, recreational facilities, and land use control. This emphasis occurred because an expanding population demanded more of these services and most of Drivein $24$s senior people came from the outside services group. For example, Drivein $24$s city manager for many years was a road development engineer. The $$inside$$ workers $($taxation$,$ community services, etc.$)$ tended to have less seniority$,$ and their departments were given less priority.

As commuter and road systems developed, Drivein $24$ attracted more upwardly mobile professionals into the community. Some infrastructure demands continued, but now these suburban dwellers wanted more of the soft services, such as libraries, social activities, and community services. They also began complaining about the way the municipality was being run. The population had more than tripled over the past three decades, and it was increasingly apparent that the organization needed more corporate planning, information systems, organization development, and cost control systems. In various ways, residents voiced their concerns that the municipality was not providing the quality of management that they would expect from a city of Drivein $24$s size.

Three years ago, a new mayor and council replaced most of the previous incumbents, mainly on the platform of improving the municipality$$s management structure. The new council gave the city manager, along with two other senior managers, an early retirement buyout package. Rather than promoting from the lower ranks, the council decided to fill all three positions with qualified candidates from large municipal corporations in the region. The following year, several long$-$term managers left Drivein $24$ and at least half of those positions were filled by people from outside the organization.

In less than two years, Drivein $24$ had eight senior or departmental managers hired from other municipalities who played a key role in changing the organization$$s value system. These eight managers became known $($often with negative connotations$)$ as the $$professionals$.$ They worked closely with each other to change the way middle and lower$-$level managers had operated for many years. They brought in a new computer system and emphasized cost controls in areas where managers previously had complete autonomy. Promotions were increasingly based more on merit than seniority$.$

These managers frequently announced in meetings and newsletters that municipal employees must provide superlative customer service and that Drivein $24$ would become one of the most customer$-$friendly places for citizens and those who do business with the municipality. To this end, the managers were quick to support the public$$s increasing demand for more soft services, including expanded library services and recreational activities. And when population growth recently flattened out, the city manager and other professionals gained council support to layoff a few of the outside workers due to lack of demand for hard services.

One of the most significant changes was that the outside departments no longer held dominant positions in city management. Most of the professional managers had work