Question 1- (a) A vision statement is a formal statement of what a business wants to be.

According
to Collins and Porras, a vision statement should have four parts. What are those four parts?
Answer: According to Collins and Porras, a vision statement should have four parts. Those four parts are:
1) Core values:
The core values are those things very close to your heart that you will not give up at any cost. It
can be integrity (for example, I will never cheat on the taxes I have to pay) or quality (I will never use a
lower quality wood), etc. Usually we say that you should have only 4 to 6 core values. Of course,
personal values and business values may differ. For example, love may be a very important personal
value but it may not be so relevant in your business of furniture though it can be relevant if you were
having a home for the aged. If you have too many of them, they fail to remain core and loses their
impact. Why are core values important? When you have a decision dilemma, they come up like a
lighthouse to navigate you.
2) Core purposes:
Core purpose is the purpose of the organization, for example, to make furniture. This is
something that you want to achieve within the framework of our core values. It gives the achievement
orientation to the business and therefore the focus. When we get an opportunity to expand or sell off and
if we are in a decision dilemma, this acts as another light house.
3) The Big Hairy Audacious Goal or BHAG:
The BHAG is about having a goal which qualifies the purpose. For example, to be the best furniture
maker in the town in five years or to be the most well known furniture supplier in India by 2025, etc. We
say that BHAG should be big, yet specific and that your chance of attaining it is only 70%. If the
probability of attaining it is more than 70%, perhaps your BHAG is not big enough and not audacious
enough and you have set your goals too low. (Dont read too much into the word hairy. This is an
American expression that depicts a huge bear with lot of hair, an animal which is the depiction of power.
Childrens stories of bear and the toy teddy bear is an American creation perhaps now popular in India
too).
4) The vivid description:
The vivid description should make the entire vision statement very inspiring to all stakeholders. It
should be simple and easily understandable. For example, Quit India is a very simple statement, but it is
very vivid and easily understandable by all. Let us be very clear that the vision statement is meant for the
stakeholders and therefore, the importance of the vivid and simple statement. We say that your
grandmother should be able to understand it or a twelve-year-old child should be able to understand it and
you should test it on them. This is also called The Grandmas Test or the 12-Year-Old Test.

(b) Differentiate between process and tasks
Answer: The difference between process and task are as follows:
Process Task
It is a set of logical activities that lead to some final
or interim output.
For example, taking piece of wood, making it
smooth, cutting it, making grooves, connecting
them, finishing them, and polishing them are
process.
These have to be done in some logical sequence.
It means sequence of work.
It is an activity that needs to be accomplished
within a defined period of time.
For example, cutting wood can be a task.
This is most basic unit in an organization.
It means particular one work in a process.



Question 2-Planning is called as the cornerstone of management. Define planning and describe the
importance of planning. Explain the types of planning.
Answer: Planning is a basic management function which enables one to select the purpose of the
business, and how the resources should be mustered to achieve that purpose to include using the available
resources optimally to do that. It implies goal setting for the organization keeping in mind the constrains,
opportunity, and threats as much as what the person or business which is planning wants to do. Thus, a
plan is a blue print for a goal achievement, a blue print that specifies the necessary resource allocation,
schedules, tasks, and other action to achieve the purpose.


Planning is important because
It helps the management to clarify, focus, and research their business or project's development
and prospects.
It provides a considered and logical framework within which a business can develop and pursue
business.
It offers a benchmark against which the actual performance can be measured and reviewed.
It helps to avoid mistakes or recognize hidden opportunities.
It guides the development of products, management, finances, and the markets and competition.
It helps to forecast the future.

Types of planning:
Based on level
Corporate plans: The plan made for various businesses by the corporate is called corporate plan.
Business plans: The plan that provides details on the business operations, products and services
and marketing strategies is called business plan.
Functional plans: The plan for handling money, marketing, recruiting people is called functional
plan.

Based on importance
Strategic plan: A plan that is important and future oriented and forms the hub of fulfilling the
vision is strategic plan.
operational plan: short term plans made for day to day functioning such as production, purchase
operation are called operation plan.
Based on formal process
Formal plan: When planning is done as per the steps and documented in a structured way, it is
called formal planning.
informal plan: When planning is done without steps and documentation, it is called informal
planning.
Based on approach
Proactive plan: The plans that we make anticipating an incident is called proactive plans.
Reactive plan: The plans that we make as a consequence of an event or action of the competition
is called reactive plan.
Based on period
Long term: Planning for the period of 8 - 20 yrs is long term plan.
Medium term: :Planning for the period up to 5 yrs is medium term plan.
Short term: :Planning for the period of 1 or 2 yrs is short term plan.




Question 3-What is meant by span of control? Differentiate between narrow span of control and
wide span of control. What are the factors that influence the span of control?
Answer: The term span of control indicates the number of employees of managers who work under one
head. It means the number of employees whom a manager can effectively manage. Therefore every
manager should be assigned or given a authority to handle few subordinates. Span of control may be
narrow or broad. When a very few people report to a head and a chain is made that way upward, then it is
called narrow span. In wide span there are may be 20 or more subordinates under one head.
The different between narrow and wide span of control are as follows:
Narrow span of control Wide span of control
Supervisor manages few employees
Appropriate if jobs are complicated
and customized.
Lots of control over work
New and untrained personnel are hired
Excessive distance between top and
bottom level.
Can manage with less training
Supervisor manages many employees
Appropriate if jobs are simple or
routine
Less control over work
Experienced and well trained employee
are hired
Less distance between top and bottom
level.
Requires high level of training.

The factor influencing span of control are as follows:
Training: Wide span demand high level of training while in narrow span, one can manage with
less.
Task definition and delegation: Wide span demands clear task definition and delegation while this
can be less in a narrow span.
Well defined plans and repetitive process: If the business has these a wide span is viable, if not a
narrow span is preferred.
Verifiable objectives: Wide span demands verifiable objectives and this is much less in narrow
span.
Speed of change: When the speed of change is high, a wide span may not be practical from
communication perspective but may not be practical if such changes need close control.
Organization structure, written and oral communication: When this is of a higher order, wide span
can work well.
Effective interaction and meeting: Wide span demands both more than narrow span.
Specialists: When there are a greater number of specialists at the upper level, a wide span is
preferable. If the number of specialists is more at the lower level, then a narrow span can work
better.
Task simplicity: If the task is simple , a wide span is viable.
Competency of managers: With highly competent managers, a wide span works well.
subordinates readiness: If the subordinates are mature and are willing to assume responsibility, a
wide span works well.
Question 4- Define Organizational behavior. What are the various approaches to Organizational
behavior?
Answer: Organization behavior is the study of what people do in an organization and how their behavior
affects organizational performance. It is concerned with the study of human behavior at work. It is the
systematic study of the behavior of individual and groups in organizational setting. It is concerned with
the understanding, predicting and managing human behavior in organization for improving organizational
effectiveness.
The various approaches to organizational behavior are as follows:
Human resource approach:
This approach is developmental. Employee growth and development are encouraged and
supported. They focus on human resources development and supports employee development rather than
controlling them. It is concerned with the growth and development of the people towards higher level of
competency, creativity and fulfillment. This approach is also known as 'supportive approach' because the
manager's primary role changes from control of employees to providing an active support for growth and
performance.
Contingency approach:
Different situation requires different behavioral practice. Organizational behavior concepts
reflects contingency condition. There is no "one best way" in organizational behavior. Each situation is
carefully analyzed prior to action. The solution to behavioral problems differ from situation to situation.
The strength of this approach is that it encourage analysis of each situation prior to action. Thus, it helps
to use all the current knowledge about people in the organization in the most appropriate manner.
Productivity approach:
In this approach, the output per unit is considered. Beside, economic inputs and outputs, we need
to have human and social inputs and outputs in workplace, is the premise of this approach.
Productivity is a ratio that compares unit of output with units. It often measured in terms of economic
inputs and outputs. Productivity is considered to be improved, if more outputs can be produced from the
same amount of inputs. But beside economic inputs and outputs, human and social inputs and outputs are
also important.
Systems approach:
It means that the organization 'people' employ 'technology' in performing the ' task' that they are
responsible for, while the 'structure' of the organization serves as a basis for coordinating all their
different activities. The systems view emphasizes the interdependence of each of these elements within
the organization, if the organization as a whole is to function effectively. This approach also looks at the
organization and its broader environment i.e. social, economic, cultural and political within they operate.

Question 5- Perception is the way we see and interpret things. Explain the importance of such
perception. What are the factors affecting perception?
Answer: Perception is the process by which individual organize and interpret their sensory impression in
order to give meaning to their environment. It is perhaps the most important aspect of Ob that we use in
our day to day life and in management. The importance of perception are as follows:
While creating vision for an organization, our perception of the future and the way things should be is a
deciding factor.
While making strategy, out perception of the opportunities and threats make us see the same situation
differently.
Perception gives the impetus to seek more information to make more rational decisions.
Perception affects the planning because the goals set depend on our perception of the world and the
employees and their ability to achieve them.
The way we organize, i.e., flat versus hierarchical, depends on our perception of the competence of the
employees and business needs. You will find the same industry having different organizational set up
because of this.
The way we select staff is often fully based on perception and once we select, the way we manage their
performance, reward and promote them and treat them are also heavily dependent on perception.
Business leaders make an effort to change the perception of the employees to bring about change.
The controls that we put in place are based on our perception of the competence and sincerity of the
employees.
Reasons for most workplace stress and conflict are differing perception and biases in perception. Hence
knowing about perception is very important.
Factors affecting perception are as follows;
1. Perceiver related factors:
People's attitude, motives, interests, experience, expectations, self concepts, moods, cognitive
structure affect perception.
2. Target related factors:
These are novelty, motion, sounds, size, background and proximity. We see how these are used in
business especially in advertisements. The way of speaking, background, body language affects the
perception.
3. Situation related: Time, work tradition, nature of the word and social setting are important factors in a
work situation that affects perception.
Question 6- Give the definition and importance of motivation. Describe Maslows hierarchy of
needs theory.
Answer: Motivation is the process that account for an individual's intensity, direction, and persistence of
effort toward attaining a goal. ( Robbins, 2003) Intensity is concerned with how hard a person tries. This
is the element most of us focus on when we talk about motivation. Direction is the orientation that
benefits the organization. And persistence is a measure of how long a person can maintain his/her effort.
Motivated individuals stay with a task long enough to achieve their goal.
Motivation is important to an individual because:
Motivation helps to achieve personal goals.
Motivation gives job satisfaction.
Motivation helps in self-development of individual.
An individual would always gain by working with a dynamic team.
Similarly, motivation is important to a business because:
The more motivated the employees are, the more empowered the team is.
The more is the team work and individual employee contribution, more profitable and successful is the
business.
During period of change, there is more adaptability and creativity.
Motivation leads to an optimistic and challenging attitude at work place
According to the Maslow's hierarchy of need theory , human beings have wants and desire which
influence their behavior. Maslow created the following five hierarchies:
1. Physiological: It includes hunger, thirst, shelter, sex, and other bodily needs. So if the workplace
does not fulfill these, an individual will not be motivated. If he gets these, he will need the next
hierarchy.
2. Safety: It includes security and protection from physical and emotional harm and therefore he
looks for safer working place, and does not want to be threatened or abused in the workplace.
3. Social: It includes affection, belongingness, acceptance, and friendship in the workplace and if he
gets this, he will be happy to work hard. Workplaces which guarantee this motivate them, we saw
in the Hawthorne experiments, how social relationship led to higher productivity.
4. Esteem: It includes internal esteem factors, such as, self-respect, autonomy, and achievement; and
external esteem factors, such as status, recognition, and attention. So, when we set goals, supports
him to achieve it and rewards him for it, it fulfills his esteem needs and also other needs because
of the money he gets as a result which he can use to fulfill the other needs such as buying a
house(safety), giving a party(social) or donating for a charity( self esteem). The focus of
organization today is to fulfill this need and social need and so combine it with reward that he can
fulfill most of his other needs.
5. Self-actualization: The drive to become what one is capable of becoming includes growth,
achieving one's potential ,and self-fulfillment.

Fig: Maslows hierarchy of needs theory