Master of Business Administration- MBA Semester 1 MB0038 Management Process and Organizational Behaviour "Boo# $%&B11'() Assignment Set-

1 "*0 Mar#s) Note: Each Question carries 10 marks. Answer all the questions.

!redits

Q. 1 State the characteristics of management. Answer: The main characteristics of management are as follows:

Management is an activity: Management is an activity which is concerned with the efficient utilization of human and non-human resources of production. Invisible Force: Management is an invisible force. Its existence can be felt through the enterprise or institution it is managing. Goal Oriente : Management is goal oriented as it aims to achieve some definite goals and objectives. According to the Haimann !"ffective management is always management by objectives#. Managers and other personnel officers apply their $nowledge experience and s$ills to achieve the desired objectives. Accom!lishment thro"gh the efforts of Others: Managers cannot do everything themselves. %hey must have the necessary ability and s$ills to get wor$ accomplished through the efforts of others. #niversal activity: Management is universal. Management is re&uired in all types or organizations. 'herever there are some activities there is management. %he basic principles of management are universal and can be applied anywhere and in every field such as business social religious cultural sports administration educational politics or military. Art as well as Science: Management is both an art and a science. It is a science as it has an organized body of $nowledge which contains certain universal truths and an art as managing re&uires certain s$ills which apply more or less in every situation. M"lti isci!linary $nowle ge: %hough management is a distinct discipline it contains principles drawn from many social sciences li$e psychology sociology etc. Management is istinct from ownershi!: In modern times there is a divorce of management from ownership. %oday big corporations are owned by a vast number of shareholders while their management is in the hands of paid &ualified competent and experienced managerial personnel. %ee at all levels: According to the nature of tas$ and scope of authority management is needed at all levels of the organization i.e. top level middle and lower level.

Integrate !rocess: Management is an integrated process. It integrates the men machine and material to carry out the operations of the enterprise efficiently and successfully. %his integrating process is result oriented.

Q. & 'hat are the 1( !rinci!les of management of )enri Fayol* Answer: 1( !rinci!les of Management of )enri Fayol: (. +ivision of 'or,: 'or$ should be divided among individuals and groups to ensure that effort and attention are focused on special portions of the tas$. )ayol presented wor$ specialization as the best way to use the human resources of the organization. *. A"thority of -es!onsibility: %he concepts of Authority and responsibility are closely related. Authority was defined by )ayol as the right to give orders and the power to exact obedience. +esponsibility involves being accountable and is therefore naturally associated with authority. 'hoever assumes authority also assumes responsibility. ,. +isci!line: A successful organization re&uires the common effort of wor$ers. -enalties should be applied judiciously to encourage this common effort. .. #nity of .omman : 'or$ers should receive orders from only one manager. /. #nity of +irection: %he entire organization should be moving towards a common objective in a common direction. 0. S"bor ination of In ivi "al Interests to the General Interests: %he interests of one person should not ta$e priority over the interests of the organization as a whole. 1. -em"neration of /ersonnel: Many variables such as cost of living supply of &ualified personnel general business conditions and success of the business should be considered in determining a wor$er2s rate of pay. 3. .entrali0ation: )ayol defined centralization as lowering the importance of the subordinate role. 4ecentralization is increasing the importance. %he degree to which centralization or decentralization should be adopted depends on the specific organization in which the manager is wor$ing. 5. Scalar .hain: Managers in hierarchies are part of a chain li$e authority scale. "ach manager from the first line supervisor to the president possess certain amounts of authority. %he -resident possesses the most authority6 the first line supervisor the least. 7ower level managers should always $eep upper level managers informed of their wor$ activities. %he existence of a scalar chain and adherence to it are necessary if the organization is to be successful. (8. Or er: )or the sa$e of efficiency and coordination all materials and people related to a specific $ind of wor$ should be treated as e&ually as possible.
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((. 12"ity: All employees should be treated as e&ually as possible. (*. Stability of Ten"re of /ersonnel: +etaining productive employees should always be a high priority of management. +ecruitment and 9election :osts as well as increased product-reject rates are usually associated with hiring new wor$ers. (,. Initiative: Management should ta$e steps to encourage wor$er initiative which is defined as new or additional wor$ activity underta$en through self direction. (.. 1s!rit e .or!s: Management should encourage harmony and general good feelings among employees

Q.3 +isting"ish between internal an e4ternal forces of change. Answer: Internal forces an 14ternal forces of change: (; Internal forces Any change in organization2s internal factors may also necessitate change. 9uch a change is re&uired because of two reasons< change in managerial personnel and deficiency in existing organizational practices.

.hange in the to! management: :hange in the top management and conse&uent change in the ideas to run the organization also leads to change in the system structure and processes. =ld managers are replaced by new managers which are necessitated because of retirement promotion transfer or dismissal. "ach new manager brings his own ideas and way of wor$ing into the organization. %he formal or informal relationships may change because of changes in top management. Moreover attitudes ideology leadership style of the person may be different from the earlier one this will reflect in their actions and decisions. %he result is that an organization has to change accordingly. .hange in si0e of the organi0ation: :hange in the organization2s size leads to change in the internal structure and complexity of the operations in the organization. /erformance ga!s: 'hen a gap between set target and actual results >in terms of mar$et share employee productivity and profit; is identified organizations face the forces to change and reduce the gap. 1m!loyee nee s an val"es: 'ith changing needs and values of the employees organizations change their policies. )or example attractive financial incentives challenging assignments vertical growth opportunities and autonomy at wor$ may be provided in an organization to attract and retain its effective employees. +eficiency in e4isting organi0ation: 9ometimes changes are necessary because of deficiency in the present organizational arrangement and process. %hese deficiencies may be in the form of unmanageable span of management large number of managerial levels

lac$ of co-ordination between various departments obstacles in communication multiplicity of committees lac$ of uniformity in policy decisions lac$ of co-operation between line and staff and so on. *; 14ternal forces "ach organization has goals and responsibility related to others in its environment. %hus an organization must not only deal with its environment in conducting its affairs but also give consideration to the goals of others as it establishes its goals and conducts its operations. %he present-day environment is dynamic and will continue to be dynamic. :hanges in social political economic technological and legal environment force organizations to change themselves. 9uch changes may result in organizational changes li$e major functions production process labour-management relations nature of competition economic constraints organization methods etc. In order to survive in the changing environment organization must change.

Technology: %echnological changes are responsible for changing the nature of the job performed at all levels in an organization. 'hen there is a change in technology in the organization2s environment and other organizations adopt the new technology the organization under focus becomes less cost-effective and its competitive position wea$ens. %herefore it has to adopt new technology. 'hen the organizations adopt a new technology its wor$ structures are affected and a new e&uilibrium has to be established. 'e have seen that technology has impact on organization structure organizational processes and behavior of people. )or example computers and automation have made significant impact on organizational functioning. 5"siness scenario: 4ue to rapid changes in the business scenario with increasing competition and global economy the needs and demands are also changing among the customers suppliers and other sta$eholders. =rganizations are therefore forced to change their operational methods to meet the demands of the sta$eholders. 9ince every organization exports its outputs to the environment an organization has to face competition in the mar$et. %here may be two types of forces which may affect the competitive position of an organization other organizations supplying the same products and buyers who are buying the product. Any change in these forces may re&uire suitable changes in the organization. )or example when Indian economy was liberalized >the process still continues; there were many foreign organizations which entered the Indian mar$et. %his forced many Indian organizations to re-align themselves with the new situation. %he result is that there have been many cases of divesting the business and concentrating on the core business ac&uiring core business and developing competitive competence to face competitive threats. 9imilarly there may be changes in buyers in terms of their needs li$ing-disli$ing and income disposal for a product. %hese changes force the organizations to bring those products which meet buyer2s re&uirements. 1nvironmental an %ational factors: "nvironmental factors such as economic political and demographic and legal factors play a vital role in devising organizational policies and strategy. Any change in these political and legal factors may affect the organizational operation. )or example organizations may have to change their employment policies in accordance with the government policy demand of the non-government organizations and changing economic conditions of a country.

Social changes: 9ocial changes reflect in terms of people2s aspirations their needs and their way of wor$ing. 9ocial changes have ta$en place because of the several forces li$e level of education urbanization feeling of autonomy and international impact due to new information sources. %hese social changes affect the behavior of people in the organization. %herefore it is re&uired to ma$e adjustment in its wor$ing so that it matches with people.

Q.(

+efine emotional intelligence. 14!lain Goleman6s mo el of emotional intelligence.

Answer: "motional intelligence is the capacity for recognizing our own feelings and those of others for motivating ourselves for managing emotions well in ourselves and in our relationships. 4aniel ?oleman and the Hay ?roup have identified a set of competencies that differentiate individuals with "motional Intelligence. %he competencies fall into four clusters<

Self7Awareness: :apacity for understanding one2s emotions one2s strengths and one2s wea$nesses. Self7Management: :apacity for effectively managing one2s motives and regulating one2s behavior. Social Awareness: :apacity for understanding what others are saying and feeling and why they feel and act as they do. -elationshi! Management: :apacity for acting in such a way that one is able to get desired results from others and reach personal goals.

%he most popular and accepted mixed model of emotional intelligence is the one proposed by ?oleman >(55/;. He viewed emotional intelligence as a total of personal and social competences. -ersonal competence determines how we manage ourselves whereas social competence determines how we handle our interpersonal relationships. /ersonal com!etence It comprises of three dimensions of emotional intelligence such as self-awareness selfregulation and motivation. 9elf-awareness is the ability of an individual to observe him@herself and to recognize Aa feeling as it happens2 >?oleman (55/;. %he hallmar$s of this ability are selfconfidence self- assessment and openness to positive criticism. 9elf-regulation is the ability to control emotions and to redirect those emotions that can have negative impact. %rustworthiness integrity tolerance of ambiguity and attitude to accept change are some characteristics of this
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ability. Motivation is the ability to channelize emotion to achieve a goal through self-control and by moderating impulses as per the re&uirement of the situation. %he people who have this ability are optimistic and committed towards organizational as well as individual goals. Social com!etence It comprises of two dimensions namely empathy and social s$ills. "mpathy is the ability to feel and get concerned for others ta$e their perspective and to treat people according to their emotional reactions. -eople with this ability are experts in generating and motivating others. 9ocial s$ills are the ability to build rapport and to manage relationships with people. -eople having this s$ill are very effective in persuasiveness and team management. !9ocial s$ill# is the culmination of all other components of emotional intelligence assuming that people can effectively manage social and wor$ relationships only when they can understand and control their own emotion and can emphasize with the feelings of others.

Fig"re: Goleman6s emotional intelligence mo el 8199:;

+,./0lain the different leadershi0 st1les as 0er Managerial 2eadershi0 3rid 4heor1,

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Answer:

%he Managerial ?rid was the original name which was the modifications were made by +obert + Bla$e and Anne Adams Mc:anse. After the modifications it was named as 7eadership ?rid. Fig"re: <ea ershi! Gri

7eadership ?rid C an approach to understanding a leader2s concern for results >production; and concern for people The five ma=or lea ershi! styles s!ecifie as !er Managerial > <ea ershi! Gri Theory: 1. The im!overishe style 81? 1;. The in ifferent <ea er 81va e @ 1l" e; In this style managers have low concern for both people and production. Managers use this style to avoid getting into trouble. %he main concern for the manager is not to be held responsible for any mista$es which results in less innovative decisions. A leader uses a !delegate and disappear# management style. 9ince they are not committed to either tas$ accomplishment or maintenance6 they essentially allow their team to do whatever it wishes and prefer to detach themselves from the team process by allowing the team to suffer from a series of power struggles. &. The co"ntry cl"b style 81? 9;. The accommo ating <ea er 8Aiel @ .om!ly; %his style has a high concern for people and a low concern for production. Managers using this style pay much attention to the security and comfort of the employees in hopes that this would increase performance. %he resulting atmosphere is usually friendly but not necessarily that productive. %his person uses predominantly reward power to maintain discipline and to encourage the team to accomplish its goals. :onversely they are almost incapable of employing the more punitive coercive and legitimate powers. %his inability results from fear that using such powers could jeopardize relationships with the other team members. 3. The !ro "ce or !erish style 89? 1;. The .ontrolling <ea er 8+irect @ +ominate; %his believes in the authority-obedience. 'ith a high concern for production and a low concern
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for people managers using this style find employee needs unimportant6 they provide their employees with money and expect performance bac$. Managers using this style also pressure their employees through rules and punishments to achieve the company goals. %his dictatorial style is based on %heory D of 4ouglas Mc?regor and is commonly applied by companies on the edge of real or perceived failure. %his is used in case of crisis management. -eople who get this rating are very much tas$-oriented and are hard on their wor$ers >autocratic;. %here is little or no allowance for co-operation or collaboration. Heavily tas$-oriented people display these characteristics< they are very strong on schedules6 they expect people to do what they are told without &uestion or debate6 when something goes wrong they tend to focus on who is to blame rather than concentrate on exactly what is wrong and how to prevent it6 they are intolerant of what they see as dissent >it may just be someone2s creativity; so it is difficult for their subordinates to contribute or develop. (. The mi le7of7the7roa style 8:? :;. The Stat"s > Q"o <ea er. 85alance @ .om!romise; It is =rganization C man management approach which believes that the ade&uate organization performance is possible through balancing the necessity to get out wpr$ with maintaining morale of people at satisfactory level. Managers using this style try to balance between company goals and wor$ers2 needs. By giving some concern to both people and production managers who use this style hope to achieve acceptable performance. :. The team style 89? 9;. The So"n B Team <ea er 8.ontrib"te @ .ommit; %his is based on the aspect that wor$ accomplishment is from committed people6 interdependence through a common sta$e in the organization purpose leads to relationships of trust and respect. In this style high concern is paid both to people and production. As suggested by the propositions of %heory E managers choosing to use this style encourage teamwor$ and commitment among employees. %his method relies heavily on ma$ing employees feel as a constructive part of the company. %his type of person leads by positive example and endeavors to foster a team environment in which all team members can reach their highest potential both as team members and as people. %hey encourage the team to reach team goals as effectively as possible while also wor$ing tirelessly to strengthen the bonds among the various members. %hey normally form and lead some of the most productive teams. + * Mr, Suresh 5umar is the 6P- 78 of a leading 9inancial services com0an1, 7e is having
a meeting :ith Ms, 8e;ani !handran leading 78 consultant, Mr, Suresh is concerned a<out creating an environment that hel0s in increasing the ;o< satisfaction amongst em0lo1ees, Assume that 1ou are Ms, 8e;ani= the 78 consultant, >hat suggestions 1ou :ill give to Mr, Suresh= for creating an environment that increases ;o< satisfaction?

Answer:
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Fob satisfaction is the sense of fulfillment and pride felt by people who enjoy their wor$ and do it well. )or an organization satisfied wor$ force ensures commitment to high &uality performance and increased productivity. Fob satisfaction helps organizations to reduce complaints and grievances absenteeism turnover and termination. Fob satisfaction is also lin$ed to a healthier wor$ force and has been found to be a good indicator of longevity. And although only little correlation has been found between job satisfaction and productivity it has also been found that satisfying or delighting employees is a prere&uisite to satisfying or delighting customers thus protecting the bottom line. 5elow are the s"ggestions that as a lea ing )- cons"ltant I will give to Mr. S"resh? for creating an environment that increases =ob satisfaction:

Mentally .hallenging 'or,: "mployees tend to prefer jobs that give them opportunities to use their s$ills and abilities and offer a variety of tas$s freedom and feedbac$ on how well they are doing. Gnder conditions of moderate challenge most employees will experience pleasure and satisfaction. /ersonality7Cob Fit: -eople with personality types congruent with their chosen vocations should find they have the right talents and abilities to meet the demands of their jobs6 and because of this success they have a greater probability of achieving high satisfaction from their wor$. It is important therefore to fit personality factors with job profiles. 12"itable -ewar s: "mployees want pay systems and promotion policies that they perceive as being just unambiguous and in line with their expectations. 'hen pay is seen as fair based on job demands individual s$ill level and industry pay standards satisfaction is li$ely to result. 9imilarly employees see$ fair promotion policies and practices. -romotions provide opportunities for personal growth more responsibilities and increased social status. Individuals who perceive that promotion decisions are made in a fair and just manner are li$ely to experience job satisfaction. S"!!ortive wor,ing con itions: "mployees prefer physical conditions that are comfortable and facilitate doing a good job. %emperature light noise and other environmental factors should not be extreme and provide personal comfort. )urther employees prefer wor$ing relatively close to home in clean and relatively modern facilities and with ade&uate tools and e&uipment. S"!!ortive .olleag"es: "mployees have need for social interaction. %herefore having friendly and supportive co-wor$ers and understanding supervisor2s leads to increased job satisfaction. Most employees want their immediate supervisor to be understanding and friendly those who offer praise for good performance listen to employees2 opinions and show a personal interest in them. 'histle blowing: 'histle-blowers are employees who inform authorities of wrongdoings of their companies or co-wor$ers. 'histle blowing is important because committed organizational members sometimes engage in unethical behaviour in an intense desire to succeed. =rganizations can manage whistle blowing by communicating the conditions that are appropriate for the disclosure of wrongdoing. :learly delineating

wrongful behaviour and the appropriate ways to respond are important organizational actions.

Social -es!onsibility: :orporate social responsibility is the obligation of an organization to behave in ethical ways in the social environment in which it operates. 9ocially responsible actions are expected of organizations. :urrent concerns include protecting the environment promoting wor$er safety supporting social issues investing in the community etc. Managers must encourage both individual ethical behaviour and organizational social responsibility.

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