201305-Semester I-MB0038- Management Process and Organization Behaviour-FLEXI

7/27/2019 201305-Semester I-MB0038- Management Process and Organization Behaviour-FLEXI

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Question 1. Describe the concept of vision in an organisation with anexample. How is it different from mission statement?(meaning -3, example - 2, explanation of parts of vision - 3, difference - 2)

A vision statement is a short and inspiring phrase of what a business intends to become and

achieve at some point in the future. It is something a company constantly strives towards

and should always be positioned in a future focused way. It captures the essence of a

companys goal but does not explain how you are going to achieve those goals.

Vision Statements also define the organizations purpose, but this time they do so in terms of

the organization's values rather than bottom line measures (values are guiding beliefs about

how things should be done.) The vision statement communicates both the purpose and

values of the organization. For employees, it gives direction about how they are expected to

behave and inspires them to give their best. Shared with customers, it shapes customers'

understanding of why they should work with the organization.

Virgin(Richard Branson) - I believe that in the future we will be able to enjoy healthy &

fulfilling lifestyles whilst minimizing the negative impact we have on the world

Nike - To be the number one athletic company in the world

Explanation of Part of Vision :

Defines the optimal desired future state - the mental picture - of what an organization

wants to achieve over time; Provides guidance and inspiration as to what an organization is focused on achieving in

five, ten, or more years;

Functions as the "north star" - it is what all employees understand their work every day

ultimately contributes towards accomplishing over the long term; and,

Is written succinctly in an inspirational manner that makes it easy for all employees to

repeat it at any given time.

Difference between Mission & Vision

Mission Vision

Concerns what an organization is all about. What the organization wants to become

Answers three key questions:

1. What do we do?2. For whom do we do it?3. What is the benefit?

Describes how the future will look if the

organization achieves its mission.

Gives the overall purpose of an organization Describes a picture of the "preferred future."

Explains what the organization does, for whom

and the benefit

Describes how the future will look if the

organization achieves its mission


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Question 2 - Define the term management. Explain the scientific management

theory proposed by Taylor

(Definition - 2, Brief on evolution of management - 2, Explanation of scientific

management theory - 6)

Definition -

Management consists of getting things done through others by directing their efforts in an

integrated and co-coordinated manner in order to attain business objectives. It is a process

consisting of functions such as planning, organizing, actuating and controlling business

operations in such a manner as to attain the predetermined goals. It also involves securing

men, money, materials and machinery needed for the achievement for business objectives

and putting all of them into operation and checking their performance in order to ensure

the productive use of the material resources. It consists of all organizational activities that

involve goal formation and accomplishment, performance appraisal and the development of

an operating philosophy that ensures organization survival.

Evolution of Management

1. Pre- scientific management period.- The concepts of management were mostly related to

the principles of specialization, selection of subordinates and their training and

simplification of administrative procedures.

2. Early management approaches represented by scientific management, process

management theory and human relations movement. Management as Science was

developed in the early 20th century and focused on increasing productivity and efficiencythrough standardization, division of labor, centralization and hierarchy.

3. Modern management approaches represented by behavioral science movement,

quantitative approach, systems approach. Tools like Total Quality Management (TQM), Six

Sigma and Lean were used to measure processes and improve productivity.

Explanation of Scientific management theory -

Scientific Management tries to increase productivity by increasing efficiency and wages of

the workers. It finds out the best method for performing each job. It selects employees by

using Scientific Selection Procedures. It provides Scientific Training and Development to the

employees. It believes in having a close co-operation between management and employees.

It uses Division of Labour. It tries to produce maximum output by fixing Performance

Standards for each job and by having a Differential Piece-Rate System for payment of wages.

Taylor wanted to create a mental revolution among the workers and management by

defining clear guidelines for improving production efficiency. He defined four principles of

management which are:

1. Develop a science for each element of an individual's work, which replaces the old rule of

thumb method.


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2. Scientifically select and the train, teach, and develop the worker.

3. Heartily cooperate with the workers so as to ensure that all work is done according to the

principles of the science that has been developed.

4. Divide work and responsibility almost equally between management and workers.Management takes over all work for which it is better fitted than the workers.

Taylor argued that following these principles would benefit both management and workers.

Workers would earn more pay, and management more profits.

Using scientific management techniques, Taylor was able to define the one best way for

doing each job. Then, he could select the right people for the job and train them to do it

precisely in this one best way. To motivate workers, he favoured incentive wage plans.

Question 3 -

Give the definition and importance of planning in an organisationand explain the steps in planning.(Definition - 2, importance - 3, List the steps in planning - 1, Explain steps -4)

Definition - A basic management function involving formulation of one or more detailed

plans to achieve optimum balance of needs or demands with the available resources. The

planning process (1) identifies the goals or objectives to be achieved, (2) formulates

strategies to achieve them, (3) arranges or creates the means required, and (4) implements,

directs, and monitors all steps in their proper sequence.

Importance -

Efficient Use of Resources

The planning process provides the information top management needs to make

effective decisions about how to allocate the resources in a way that will enable the

organization to reach its objectives.

Establishing Goals

Setting goals that challenge everyone in the organization to strive for better

performance is one of the key aspects of the planning process.

Managing Risk And Uncertainty

Managing risk is essential to an organizations success. Even the largest corporations

cannot control the economic and competitive environment around them.

Team Building

Planning promotes team building and a spirit of cooperation. When the plan is

completed and communicated to members of the organization, everyone knows

what their responsibilities are, and how other areas of the organization need their

assistance and expertise in order to complete assigned tasks.


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Creating Competitive Advantages

Planning helps organizations get a realistic view of their current strengths and

weaknesses relative to major competitors.

Steps of Planning -

The various stages in the process of planning are as follows:1. Goal setting:

Plans are the means to achieve certain ends or objectives. Therefore, establishment of

organizational or overall objectives is the first step in planning. Setting objectives is the most

crucial part of planning. The organizational objectives should be set in key areas of operations.

2. Developing the planning premises:

Before plans are prepared, the assumptions and conditions underlying them must be clearly

defined these assumptions are called planning premises and they can be identified through

accurate forecasting of likely future events.

3. Reviewing Limitations:

In practice, several constraints or limitations affect the ability of an organization to achieve its

objectives. These limitations restrict the smooth operation of plans and they must be anticipated

and provided for.

4. Deciding the planning period:

Once the broad goals, planning premises and limitations are laid down, the next step is to decide

the period of planning. The planning period should be long enough to permit the fulfillment of

the commitments involved in a decision.

5. Formulation of policies and strategies:

After the goals are defined and planning premises are identified, management can formulate

policies and strategies for the accomplishment of desired results. The responsibility for laying

down policies and strategies lies usually with management. But, the subordinates should be

consulted as they are to implement the policies and strategies.

6. Preparing operating plans:

These plans consist of procedures, programmers, schedules, budgets and rules. Such plans are

required for the implementation of basic plans.

7.Integration of plans:

Different plans must be properly balanced so that they support one another. Review and revision

may be necessary before the plan is put into operation. Moreover, the various plans must be

communicated and explained to those responsible for putting them into practice.

Question 4 -What is meant by leading? Describe the characteristics of

leading.(Explain concept of leading - 3, List characteristics- 1, Explanation -6)


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Leading A continuous process of setting objectives and trying to achieve them through the

efforts of other People. A definition of good leading would delete trying to achieve and

substitute achieving. Thus good leading means a continuous process of setting

objectives and achieving them through the efforts of other people. Leading would involve a

Leader setting objectives. It would not involve identifying an objective from some other

source.

Characteristics of Leading

1. Visionary- A leader must have a clear picture of the future while remaining focused on the

present. This can be hard because as Jonathan Swift said, Vision is the art of seeing things

invisible.If a leader takes the time to think about the future of their industry and the

possible changes, then they will see the invisibleand stay ahead of todays fast paced

society. Effective leaders have a clear picture of the future then gather people around them

who can produce results which lead to the vision being accomplished.

2. Team Builder- An essential characteristic of leading others is the ability to build and

maintain teams of people. Good leaders know the value of having a united team that can

effectively work together to produce results. This can be done if a leader puts the right

people in the right places within the team or organization. Doing this requires taking the

time to know and understand your people

3. Communicator- A leader needs to be able to effectively communicate with others, both

verbally and non-verbally. The leaders words and body language needs to be lined up with

the message they are communicating. Becoming is a skill every leader must develop. This is

because so much of leadership is about communicating.

4. Change Agent- Leaders need to avoid the dangers of not changing by becoming change

agents. The status quo might be to stay the same and resist change but effective leaders

chose to rise above the status quo and create change. Great organizations and teams only

happen if the leader is moving forward. Many of the businesses and organizations that have

fallen during the recession were resistant change and kept doing what they have always

done. Those who have stayed strong have leaders who were creating change.

5. Producer- Effective leaders have the ability to produce and can influence others to

produce results in given areas. The true test of an effective leader is their ability to produce

desired results, whether its individual or team results. Its wise to remember leadership and

results are closely connected with each other.


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Question 5 -

What are attitudes? Explain the components and functions ofattitude.(Meaning of attitude - 2, Listing the components -1, Explanation ofcomponents- 3, List the functions - 1, Explanation of functions- 3)

A predisposition or a tendency to respond positively or negatively towards a certain idea,

object, person, or situation. Attitude influences an individual's choice of action, and

responses to challenges, incentives, and rewards (together called stimuli). In other words,

an attitude is the psychological response to a person, an object, to a situation, to society

and to life itself that generally influence our behaviours and actions. Attitudes are either

positive or negative.

Components of attitudes.

Three major components of attitude are (1) Affective: emotions or feelings. (2) Cognitive:belief or opinions held consciously. (3) Conative: inclination for action.

a. Cognitive - our thoughts, beliefs, and ideas about something. When a human being is the

object of an attitude, the cognitive component is frequently a stereotype, e.g. "welfare

recipients are lazy"

b. Affective - feelings or emotions that something evokes. e.g. fear, sympathy, hate. May

dislike welfare recipients.

c. Conative, or behavioral - tendency or disposition to act in certain ways toward something.Might want to keep welfare recipients out of our neighborhood. Emphasis is on the

tendency to act, not the actual acting; what we intend and what we do may be quite

different.

Attitudes serve four major functions for the individual: (1) the adjustments function, (2) the

ego defensive function, (3) the value expressive function (4) the knowledge function.

Ultimately these functions serve peoples need to protect and enhance the image they hold

of themselves. In more general terms, these functions are the motivational bases which

shape and reinforce positive attitudes toward goal objects perceived as need satisfying and

/ or negative attitudes toward other objects perceived as punishing or threatening. Thesesituations are diagrammed in Figure below. The functions themselves can help us to

understand why people hold the attitudes they do toward psychological objects.

Adjustment Function

The adjustment function directs people toward pleasurable or rewarding objects and away

from unpleasant, undesirable ones. It serves the utilitarian concept of maximizing reward

and minimizing punishment. Thus, the attitudes of consumers depend to a large degree on

their perceptions of what is needed satisfying and what is punishing. Because consumers

perceive products, services and stores as providing need satisfying or unsatisfying

experiences we should expect their attitudes toward these object to vary in relation to the

experiences that have occurred.


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Ego Defensive Function

Attitudes firmed to protect the ego or self-image from threats help fulfill the ego defensive

function. Actually many outward expressions of such attitudes reflect the opposite of what

the person perceives him to be. For example a consumer who has made a poor purchase

decision or a poor investment may staunchly defend the decision as being correct at the

time or as being the result of poor advice from another person. Such ego defensive attitude

helps us to protect out self-image and often we are unaware of them.

Value expression function

Whereas ego defensive attitudes are formed to protect a persons self-image, value

expressive attitudes enable the expression of the persons centrally held values. Therefore

consumers adopt certain attitudes in an effort to translate their values into something more

tangible and easily expressed. Thus, a conservative person might develop an unfavorable

attitude toward bright clothing and instead be attracted toward dark, pin striped suits.Marketers should develop an understanding of what values consumers wish to express

about themselves and they should design products and promotional campaigns to allow

these self-expressions. Not all products lend themselves to this form of market

segmentation however. Those with the greatest potential for value expressive segmentation

are ones with high social visibility. Cross pens, Ferrari automobiles and Bang & Children

stereo systems are examples.

Knowledge function

Humans have a need for a structured and orderly world, and therefore they seek

consistency stability definition and understanding. Out of this need develops attitudestoward acquiring knowledge. In addition, the need to know tends to be specific. Therefore

an individual who does not play golf, nor wish to learn the sport is unlikely to seek

knowledge or an understanding of the game. This will influence the amount of information

search devoted to this topic. Thus, out of our need to know come attitudes about what we

believe we need or do not need to understand.

Question 6 -

Define leadership. Differentiate between authoritarian and democratic

leadership style.(Definition of leadership- 2, Meaning & characteristics of authoritarianleadership style- 4, Democratic leadership style- 4)

The activity of leading a group of people or an organization or the ability to do this.

Leadership involves

(1) Establishing a clear vision,

(2) Sharing that vision with others so that they will follow willingly,

(3) Providing the information, knowledge and methods to realize that vision, and

(4) Coordinating and balancing the conflicting interests of all members and stakeholders.

Authoritarian Style


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The Authoritarian Leadership Style is characterized by a leader who makes all the decisions

and passes the directives to subordinates who are expected to carry these out under very

close supervision. Any subordinates attempt at questioning the directives given are

discouraged. There is little or no opportunity for subordinates to develop initiative and

creativity. Employee behavior is closely controlled through such means as punishment,

reward, arbitrary rules, and task orientation.

The authoritarian leadership style is based upon the assumption that the leader knows

everything and knows what is best for the organization. Employees are ignorant, indolent,

lack ambition, dislike responsibility, and prefer to be led. Employees cannot be trusted to do

what is right for the organization. Unlimited authority is thus rightly vested in the leader.

Authoritarian leaders can be arrogant, hostile, boastful, and egotistical.

Inspite of its weaknesses, the authoritarian leadership style is well suited for certain

environments such as the military, a prison, etc. In those settings, in which the lives ofpeople depend on others following orders, the authoritarian styles is ideal. This style would

also be appropriate for directing beginning teachers in the school setting because of their

inexperience they tend to need more direction.

Democratic Style

It is characterized by a structured but cooperative approach to decision making. It focuses

on group relationships and sensitivity to the people in the organization. This type of

leadership style fosters professional competence. Supervision is minimal as individuals take

the responsibility for their behavior. Subordinates are encouraged to express their ideas and

make suggestions. However, shared decisions are not likely to occur in all aspects of theorganizational operations. Democratic leaders sell ideas. They tend to be warm, confident,

and friendly.

The democratic leadership style encourages employee participation and professional

growth. It is well suited in environments where people have a very high level of expertise

such as software engineers, lawyers, doctors, mature teachers, etc. The democratic

leadership style promotes greater job satisfaction and improved morale.

While democratic leadership has been described as the most effective leadership style, it does

have some potential downsides. In situations where roles are unclear or time is of the essence,democratic leadership can lead to communication failures and uncompleted projects. In some

cases, group members may not have the necessary knowledge or expertise to make quality

contributions to the decision-making process.

Democratic leadership works best in situations where group members are skilled and eager to

share their knowledge. It is also important to have plenty of time to allow people to contribute,

develop a plan and then vote on the best course of action.

201305-Semester I-MB0038- Management Process and Organization Behaviour-FLEXI

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