MBA - Organization Behaviour Notes

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“Management is a continuous process”. “Management is a distinct process consisting of planning, organizing, actuating and controlling, performed to determine and accomplish stated objective by the use of human beings and other resources”. As a process, management consists of three aspects: 1.Management is a social process - Since human factor is most important among the other factors, therefore management is concerned with developing relationship among people. It is the duty of management to make interaction between people - productive and useful for obtaining organizational goals. 2.Management is an integrating process - Management undertakes the job of bringing together human physical and financial resources so as to achieve organizational purpose. Therefore, is an important function to bring harmony between various factors. 3.Management is a continuous process - It is a never ending process. It is concerned with constantly identifying the problem and solving them by taking adequate steps. It is an on-going process. Enumerate the steps of control process. Controlling consists of verifying whether everything occurs in conformities with the plans adopted, instructions issued and principles established. Controlling ensures that there is effective and efficient utilization of organizational resources so as to achieve the planned goals The four steps in the control process in management are: 1. Establishing Standards: Standards are criteria against which results are measured. They are norms to achieve the goals. Standards are usually measured in terms of output. They can also be measured in non-monetary terms like loyalty, customer attraction, goodwill etc. 2. Measuring Performance: Measurement involves comparison between what is accomplished and what was intended to be accomplished. The measurement of actual performance must be in the units similar to those of predetermined criterion. The unit or the yardstick thus chosen be clear, well-defined and easily identified, and should be uniform and homogenous throughout the measurement process. 3. Comparing the Actual Performance with Expected Performance: This is the active principle of the process. The previous two, setting the goals and the measurement format are the preparatory parts of the process. It is the responsibility of the management to compare the actual performance against the standards established. 4. Correcting Deviations: The final element in the process is the taking corrective action. Measuring and comparing performance, detecting shortcomings, failures or deviations, from plans will be of no avail if it does point to the needed corrective action. Thus controlling to be effective, should involve not only the detection of lapses but also probe into the failure spots, fixation of responsibility for the failures at the right quarters, recommendation of the best possible steps to correct them. These corrective actions must be applied when the work is in progress. The primary objective should be avoidance of such failures in future.

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Organization Behaviour Notes

Transcript of MBA - Organization Behaviour Notes

  • Management is a continuous process.

    Management is a distinct process consisting of planning, organizing, actuating and controlling, performed to determine and accomplish stated objective by the use of human beings and other resources. As a process, management consists of three aspects:

    1.Management is a social process - Since human factor is most important among the other factors, therefore management is concerned with developing relationship among people. It is the duty of management to make interaction between people - productive and useful for obtaining organizational goals.

    2.Management is an integrating process - Management undertakes the job of bringing together human physical and financial resources so as to achieve organizational purpose. Therefore, is an important function to bring harmony between various factors.

    3.Management is a continuous process - It is a never ending process. It is concerned with constantly identifying the problem and solving them by taking adequate steps. It is an on-going process.

    Enumerate the steps of control process.

    Controlling consists of verifying whether everything occurs in conformities with the plans adopted, instructions issued and principles established. Controlling ensures that there is effective and efficient utilization of organizational resources so as to achieve the planned goals

    The four steps in the control process in management are:

    1. Establishing Standards:

    Standards are criteria against which results are measured. They are norms to achieve the goals. Standards are usually measured in terms of output. They can also be measured in non-monetary terms like loyalty, customer attraction, goodwill etc.

    2. Measuring Performance: Measurement involves comparison between what is accomplished and what was intended to be accomplished. The measurement of actual performance must be in the units similar to those of predetermined criterion. The unit or the yardstick thus chosen be clear, well-defined and easily identified, and should be uniform and homogenous throughout the measurement process.

    3. Comparing the Actual Performance with Expected Performance: This is the active principle of the process. The previous two, setting the goals and the measurement format are the preparatory parts of the process. It is the responsibility of the management to compare the actual performance against the standards established.

    4. Correcting Deviations: The final element in the process is the taking corrective action. Measuring and comparing performance, detecting shortcomings, failures or deviations, from plans will be of no avail if it does point to the needed corrective action.

    Thus controlling to be effective, should involve not only the detection of lapses but also probe into the failure spots, fixation of responsibility for the failures at the right quarters, recommendation of the best possible steps to correct them. These corrective actions must be applied when the work is in progress. The primary objective should be avoidance of such failures in future.

  • Locus of Control

    A locus of control orientation is a belief about whether the outcomes of our actions are contingent on what we do (internal control orientation) or on events outside our personal control (external control orientation).

    In 1954, psychologist Julian Rotter suggested that our behaviour was controlled by rewards and punishments, and that it was these consequences for our actions that determined our beliefs about the underlying causes for these actions. In 1966, Rotter published a scale designed to measure and assess external and internal locus of control.

    Internal locus of control is often used synonymously with "self-determination" and "personal agency." Research has suggested that men tend to have a higher internal locus of control than women and that locus of control tends to become more internal as people grow older.

    It is also important to note that locus of control is a continuum. No one has a 100 percent external or internal locus of control. Instead, most people lie somewhere on the continuum between the two extremes.

    Those with an internal locus of control:

    Are more likely to take responsibility for their actions Tend to be less influenced by the opinions of other people Tend to work hard to achieve the things they want Feel confident in the face of challenges Often achieve greater success in the workplace

    Those with an external locus of control:

    Blame outside forces for their circumstances Often credit luck or chance for any successes Don't believe that they can change their situation through their own efforts Frequently feel hopeless or powerless in the face of difficult situations Are more prone to experiencing learned helplessness

    However, it is also important to remember that internal does not always equal "good" and external does not always equal "bad." In some situations an external locus of control can actually be a good thing, particularly if a person's level of competence in a particular area is not very strong.

  • Management is the art of getting things done through other people. Explain the importance of management in the light of this statement.

    Management is the process by which human efforts are coordinated and combined with other resources to accomplished organizational goals and objectives. Mary Parker Folett defines management as the art of getting things done through people.

    Getting things done means to get tasks and activities carried out. It implies that management is not a mere philosophy but a highly performance-oriented function. Management gets things done through people, comprising of both managers, subordinate and staff members.

    Getting things done through the people is really an art, which consists of a range of skills acquired and refined in the course of practice. The skills which are required to get things done through people include conceptual skills, technical skills, administrative skills, social skills and so on. In order to get things done through people, management has to plan the things which are to be done. This planning describes the formulation of objectives, strategies, policies and programs at the top level of management. The tasks to be carried out for achieving the goals are to be determined and assigned to individuals and work units. It is called organisation. Then the roles or various position holders and their inter-relationships are to be designed and defined. Thus, the management means to get things done in an organized and disciplined manner.

    Yes, of course it is the art of getting things done through people. A good management requires a good manager in directing or leading his subordinates, as well as a good subordinate in doing things in a right way in order to meet the goal and objectives of the organization. It is also said that management requires an understanding of the economic principle of the division of labor, which breaks down into subtasks, and the coordination of effort, which recognize the subtasks into an efficient and effective whole. The managers do not do the work themselves. They get the work done through the workers. The workers should not be treated like slaves. They should not be trickled, threatened or forced to do the work. A favorable work environment should be created and maintained.

    Define coordination

    Co-ordination is the unification, integration, synchronization of the efforts of group members so as to provide unity of action in the pursuit of common goals. It is a hidden force which binds all the other functions of management.

    According to Mooney and Reelay, Co-ordination is orderly arrangement of group efforts to provide unity of action in the pursuit of common goals.

    According to Charles Worth, Co-ordination is the integration of several parts into an orderly hole to achieve the purpose of understanding.

    Management seeks to achieve co-ordination through its following basic functions

    planning, organizing, staffing, directing controlling.

  • That is why; co-ordination is not a separate function of management because achieving of harmony between individuals efforts towards achievement of group goals is a key to success of management. Co-ordination is the essence of management and is implicit and inherent in all functions of management.

    Controlling is looking back.

    Controlling involves an assessment of the past performance and evaluating them against the set standards. it also aims at improving the future performance by taking the required corrective actions. Controlling investigates whether planning was successful.

    Controlling referred to as terminal management function, takes place after the other functions have been completed. And for this process we have to look back and have to analyze the performance of our planning, organizing and leading. And therefore we have to look back also.

    In this sense, controlling is said to be a backward looking function.

  • Human Behavior is generally caused and predictable. Explain

    Humans are predictable in most of their human behavior. It is incorrect to say that humans are not predictable and we can never predict what humans might do. Indeed, human behavior is predictable and if you will simply take this notion and adopt it, then you too will be able to predict what human behavior will occur in various situations.

    Human behavior is also predictable in light of the environment within which it occurs. It is not as absolutely predictable as is the case with chemical reactions, gravitational phenomena, and heavenly bodies in space, but it is predictable enough for us to know generally what will happen under given conditions. There is, indeed, a science of human behavior. Human behavior is lawful and as is the case with other sciences, we can predict events-not, perhaps, with the same level of certainty, but certainly at high levels of accuracy.

    Human behavior is predictable and therefore humans are predictable and therefore you can know the outcome in advance in most circumstances to a very large percentage of probability.

    What do you mean by group cohesiveness? Group cohesion is the total field of forces causing members to remain in the group. In other words, group cohesion is the extent to which the members within a group are attracted to the ideas held by the group.

    In the work environment, it is important for all employees to share a common goal, namely, to complete tasks that will benefit the company or organizational group. Having employees work toward a common goal promotes an interdependency among the co workers; if each team member does their part, the task will ultimately come together. A cohesive work environment increases the likelihood of employee satisfaction and serves as an incentive for employees to arrive prepared and willing to conquer the tasks of the day. Lack of cohesion within a working environment is certain to result in unnecessary stress and tension among co workers. As might be expected, when employees do not get along together, work suffers. Thus, cohesion in the work place could, ultimately, be the rise or demise of an organization or companys success.

  • 14 principles of management as given by Henry Fayol.

    Different management experts have explained different principles on the basis of their research. Henry Fayol, a famous industrialist of France, has offered fourteen principles of management for the first time in 1916 The fourteen principles given by Fayol are as under: 1. Division of labour: If people are specialists, they can perform their tasks better. It recommends grouping of people as per their areas of specialization. The modern assembly line concept is an outcome of such division of labour. 2. Authority: Managers must have the authority to get things done. But formal authority alone may not ensure obedience from the subordinates. Managers must have the expertise to exert personal authority as well. 3. Discipline: People working in an organization need to comply with rules and agreements that govern the organization. Results cannot be achieved without discipline. Good discipline is the result of good leadership and together they can create an environment of good work culture. 4. Unity of command: Members in an organization must receive instructions from only one person. Conflicts arise when one receives orders and instructions from multiple bosses. Therefore, ideally an employee should report to a single boss. 5. Unity of direction: All operations of an organization need to be directed at one objective. Goals cannot be achieved without unity of direction. 6. Subordination of individual interest to the common good: Interests of an individual employee should not take precedence over the interests of the organization as a whole. 7. Remuneration: It should be fair to both employees and employers. 8. Centralization: While centralization reduces the role of the subordinates in the process of decision making, decentralization enhances it. Managers should retain responsibility by centralization but at the same time give their subordinates enough authority to do their jobs properly. 9. The hierarchy: There should be a line of authority, illustrated in the form of an organizational chart, showing the hierarchy clearly from the top management down to the lowest level. 10. Order: Men and materials should be in the right place at the right time. Job allocation should be made in a way that suits employees. 11. Equity: Managers should be fair to their subordinates. 12. Stability of staff: Employee turnover should be the minimum possible to ensure continuity and efficiency of an organization. 13. Initiative: Subordinates should have the freedom to plan and work out their tasks, even though they may commit mistakes. 14. Esprit de corps: Team spirit should be promoted to develop a culture of unity in an organization. Wherever possible, verbal communication should be used instead of formal written communication as this helps in developing team spirit in an organization.

  • What are the leadership qualities that you would look for in a manager? Distinguish between innate and acquirable qualities with examples.

    There will be good times, stressful times, and terrible times, but a great leader is always able to lead a team to success, regardless of the situation at hand. Simply holding a position in leadership doesnt make someone a good leader. A truly great leader understands the many different factors that come with leading others, and strives to help others reach their goals; they are always developing themselves, and act as visionaries for their organization.

    Qualities are most important for a manager to be an effective leader are list below.

    Honesty: The foundation of any relationship, both personal and professional, is honesty. People want to work for a leader they can trusta leader that has morals, values, and integrity.

    Communication: Without clear communication, your employees wont understand your mission, goals, and vision. Employees want to work toward something they believe in, so its important they understand that they are working toward the same goals you are. With great communication, your employees will know exactly what they are working for, will rely on you, and will give their best effort for you.

    Confidence: When things go wrong, employees look to you for the answers and judge the situation based upon your reaction. Even if the company is experiencing a major downturn, its important to always be confident, calm, and set a good example. Good Leaders job is to maintain the happy work environment, and continue leading the team in their daily work.

    Inspiration: Inspiration often looks forward to the future, its also important for the present; it gives employees a reason to work, to succeed, and to do their best in everything they do. Make them feel invested in the company through inspiration and theyll be loyal, hard-working employees.

    Delegation: If there is a highly-important project, it can be difficult to trust employees without micromanaging. Trusting them to do their best possible work is a sign of strength in your leadership, and will encourage them to live up to your expectations. When it comes to delegation, the idea is to decide what strengths each employee possesses, and to assign them tasks that best fit those strengths. The ability to delegate successfully will lead to higher quality work and productivity.

    Humor: Although not a requirement, a sense of humor goes a long way in leadership. It helps create a positive work environment and enhances the feeling of camaraderie. Unique personality and sense of humor shows your employees that you are more than a leader, and that you arent a machine, which encourages them to feel comfortable around you.

    Intuition: Sometimes we are presented with situations that arent in the textbooks, and for which you might not be prepared as a leader. The first decision isnt always the best one, and taking your time to come up with a unique solution can be in the best interest of your workers and organization. Sometimes, leaders have to draw upon their instincts, past experiences, and mentors for help in these complicated situations.

  • The various traits can be classified into innate and acquirable traits, on the basis of their source.

    Innate qualities are those which are possessed by various individuals since their birth. These qualities are natural and often known and God-gifted. On the basis of such qualities, it is said that leaders are born and not made. These qualities cannot be acquired by the individuals

    Acquirable qualities of leadership are those which can be acquired and increased through various processes. In fact, when child is born, he learns many of the behavioral patterns through socialization and identification processes. Such behaviors patterns are developed among the child as various traits over a period of time. Many of these traits can be increased through training programmers.