SMU_MBA-Solved Assignment-Mb0038 management process and organizational behavior spring2015_assignment
- 1. ASSIGNMENT, Drive SPRING 2015 Program MBA, Semester 1 Subject code & name MB0038 – Management Process and Organizational Behavior Book ID B1621, Credit & Marks 4 CREDIT, 60 MARKS Answerall questions. Q. 1. Explainthe conceptof Management.Discuss the importance of Management. Q. 2. Discussthe stepsinvolvedinthe Planningprocess. Q. 3. What do you meanbyControl?Explainthe pre-requisitesof an Effective Control system. Q. 4. Discussthe concept of a Group. Explainthe purpose of aGroup. Discussthe typesof Formal Groups. Q. 5. Discussany tencharacteristicsof an Effective team. Q. 6. Write short notesonthe following: a) Goleman’sModel of Emotional Intelligence. b) Fielder’sContingencyModel of Leadership Q. No 1. Explain the concept of Management. Discuss the importance of Management. Ans.1- Conceptof Management Accordingto HaroldKoontz,“Managementisan art of gettingthingsdone throughandwithpeople informallyorganisedgroups.Itisanart of creatingan environmentinwhichpeoplecanperformas individualsandcanco-operate towardsthe attainmentof groupgoals”. Accordingto F.W.Taylor,“Managementisan art of knowingwhatto do,whento do,and see thatit isdone in the bestand cheapestway”. Letus modifythe definitionof HaroldKoontzanddefine managementas‘the processof designingandmaintaininganenvironmentinwhichthe individuals workingingroupsefficientlyemployresourcesandaccomplishthe selectedgoalsof self andthe organisation’.Thisdefinitionbringstofore the followingkeyissuesof management: It isabout people and otherresources There are goalsbutgoals of the individual andthe organisationhastobe managed It involvescreatinganenvironmentwherepeople andresourcesinteracttoproduce the goals. Importance of Management: Managementisimportantbecause of the followingreasons: It helpsin AchievingGroupGoals - It arrangesthe factorsof production,assemblesand organizesthe resources,integratesthe resourcesineffective mannertoachieve goals.It directsgroupeffortstowardsachievementof pre-determinedgoals.Bydefiningobjective of organizationclearlythere wouldbe nowastage of time,moneyandeffort.Management convertsdisorganizedresourcesof men,machines,moneyetc.intousefulenterprise.These resourcesare coordinated,directedandcontrolledinsuchamannerthat enterprise work towardsattainmentof goals. Optimum UtilizationofResources - Managementutilizesall the physical&humanresources productively.Thisleadstoefficacyinmanagement.Managementprovidesmaximum utilizationof scarce resourcesbyselectingitsbestpossiblealternateuse inindustryfromout of varioususes.It makesuse of experts,professional andthese servicesleadstouse of their
- 2. skills,knowledge,andproperutilizationandavoidswastage.If employeesandmachinesare producingitsmaximumthere isnounderemploymentof anyresources. ReducesCosts - It getsmaximumresultsthroughminimuminputbyproperplanningandby usingminimuminput&gettingmaximumoutput.Managementusesphysical,humanand financial resourcesinsuchamannerwhichresultsinbestcombination.Thishelpsincost reduction. EstablishesSoundOrganization - Nooverlappingof efforts(smoothandcoordinated functions).Toestablishsoundorganizational structure isone of the objective of managementwhichisintune withobjective of organizationandfor fulfilmentof this,it establisheseffective authority&responsibilityrelationshipi.e.whoisaccountable towhom, whocan give instructionstowhom, whoare superiors&whoare subordinates. Managementfillsupvariouspositionswithrightpersons,havingrightskills,trainingand qualification.All jobsshouldbe clearedtoeveryone. EstablishesEquilibrium- It enablesthe organizationtosurvive inchangingenvironment.It keepsintouchwiththe changingenvironment.Withthe change isexternal environment, the initial co-ordinationof organizationmustbe changed.Soitadaptsorganizationto changingdemandof market/ changingneedsof societies.Itisresponsible forgrowthand survival of organization. Essentialsfor Prosperityof Society - Efficientmanagementleadstobettereconomical productionwhichhelpsinturntoincrease the welfare of people.Goodmanagementmakes a difficulttaskeasierbyavoidingwastage of scarce resource.Itimprovesstandardof living. It increasesthe profitwhichisbeneficial tobusinessandsocietywillgetmaximumoutputat minimumcostbycreatingemploymentopportunitieswhichgenerate income inhands. Organizationcomeswithnewproductsandresearchesbeneficialforsociety. Q. No 2. Discuss the steps involved in the Planning process. Ans.2- Planningcanbe definedasabasic managementfunctionwhichenablesone toselectthe purpose of the business,andhowthe resourcesshouldbe musteredtoachieve thatpurpose to include usingthe available resourcesoptimallytodothat. Let us now discussthe stepsinvolvedin the Planning process. Beingaware of opportunities – thismeansbeingaware of the customerneeds,market, competition,ourstrengths,andweaknesses.Thisisusuallydone throughmarketresearch, competitoranalysis,andanalysisof ownstrengthsandweaknessesthroughaformal process calledswotanalysis(strength,weaknesses,opportunity,andthreat). Establishingobjectives – thisimpliesestablishingwhatwe wanttobe and whatwe wantto accomplishandwhenandin relationtowhichmarketsegment.Atthe highestlevel,thisis done throughvisionandmissionbuilding. Thisprocesstakesplace atbusinesslevel,project level, etc. also. Developingpremises –Decidingonthe environment(bothexternal andinternal) inwhich our plansare goingtooperate.Businesshasexternalenvironmentcreatedbypolitical factors to include legislation,legalframework,etc. Forexample,foreigncompaniescannot investdirectlyinmulti-brandretail inIndia.There canbe economicreasonssuchasgeneral slowdowninwhichcase the shopperstothe bakerymaydecrease,there canbe factors such as nuclearfamilyandeatingouthabitwhichhelpsSambhavi tohave agreatermarket,etc. The external analysisisdone throughaprocesscalledPESTanalysis(Political,Economic,
- 3. Social,andTechnological).Some addculture asan additional separate factorwhile others include itinSocial.PESTis a frameworkandhelpsyoutothinksystematicallythroughthe factors thatcouldaffect.In relationtothe businessmission,eachof the factorsmay become a threat or opportunity(orof course maybe neither). Determiningalternative courses – identifyingthe mostpromisingalternativesto accomplish whatwe wantto. Thisisdone by combiningthe informationaboutthe opportunities, threats,andown strengthandweaknesses. Evaluating alternative courses– comparingthe alternativestofindoutwhichof themwill meetourgoals andat optimal costandprofitkeepingsustainabilityintomind. Selectinga course – selectingthe course thatwe wantto follow. Formulatingplans – thisimpliesmakingplansthatsupportthe course of actionby buying equipment,space,planningthe type of hr,etc. Qualifyingplans by budgeting– Identifyingthe costinvolved,how the financial resources will be mobilised,whatiscapital expenditure,whatisoperational expenditure,the working capital,etc. Q. No 3. What do you mean by Control?Explain the pre-requisitesofan Effective Control system. Ans.3- Meaningof Control Controllingcanbe definedasmeasuringandcorrectingof performance toachieve the organisational goals.Accordingto Brech,“Controllingisasystematicexercise whichiscalledas a processof checkingactual performance againstthe standardsorplanswitha view toensure adequate progress and alsorecordingsuchexperience asisgainedasa contributiontopossible futureneeds.” Accordingto Donnell,“Justasa navigatorcontinuallytakesreadingtoensure whetherhe isrelative to a plannedaction,soshoulda businessmanagercontinuallytake readingtoassure himself thathis enterprise isonrightcourse.” Pre-requisitesofaneffective Control System All managerslike tohave controlsbecause withoutthemtheirplanswouldgoawry.Letusnow studythe pre-requisitestohave aneffective control system. Tailoring controlsto plans and positions – A control is exercisedonanactivityor a group of activities.Itfollowsthatwhatcontrol isgoodfor a positionmaynotbe relevantforanother e.g.,the Vice Presidentof marketingandthe Vice Presidentof operationscannothave the same controlsthoughbothmaybe basedon a financial control system.E.g.,the outlet managerof Sambhavi canhave a control basedonROI, butthe snack countermanager needstohave it basedonper customerrevenue ratherthanROI. Tailoring controlsto individual manager– Controlshave tobe adjustedtothe individual manager’scapabilityalso. If someonedoesnotunderstandacontrol,he/shewillnottrustit or use it as a resultof whichit will become dysfunctional. Designing‘pointto the exceptionsat critical point’ – If a control has to be effective,itmust control the exceptionandthattoo at the critical point.Forexample,the critical pointin home deliveryof abirthdaycake is the time and accuracy of writingthe name.The exceptioncanbe wrongname due to spellingvariationsandthe time of deliverydue to wrongaddress.Therefore,control shouldexistsothatthe deliveryorderphone number(we usuallyexperience itwhenwe orderapizza) andthe spellingof the name isrechecked.If the AssistantManagercan call the customerjustbefore the deliveryandrecheckthe delivery addressandthe spellingof the name,anappropriate control canbe designed.
- 4. Objectivityof controls – Many managementactionsare subjective,butwhencontrolsare created,theymustbe objective,accurate,andmustsuita standard.While thismaybe relativelyeasyinmachine relatedsystemsandfinancial relatedindicator,we have tobe careful whenwe have torelate itto the intangible areas.Forexample,how wouldyouhave controlsforthe kidcare managerinSambhavi outlets? Flexibility–Controls mustbe flexibletoinclude the changedplans,unforeseen circumstances,oroutrightfailure.Forexample,Sambhavi mayuse budgetcontrol tosaythe inventorylevel butif the salesare significantlyhigherorlower,there shouldbe flexibilityin the control.Suppose we definethe inventoryperrupee of costof productionorper kilogramof production.Itwouldbe flexible tocontrol itusinganannual budgetarycontrol or average inventorybasedonearlierdata. Fittingto the organisational culture – Imagine puttingtightcontrol overSambhavi whose culture isfamily-likeandopenwiththe freedomtoexperiment.The control will most certainlyaffectthe culture whichtobeginwithisthe competitive advantageof Sambhavi. Therefore,itmustfitthe culture.If youhave a tightand bureaucraticsystem, alose control will alsonotwork. Economy of controls – Controlsmustbe worththeircosts.Creatingcontrolswhichare excessivelyexpensive iscounter-productive.Forexample,we cannothave the same controls inan aircraft and a car. Abilityto lead to corrective action – The control shouldleadtocorrective action.Onlythen it closesthe loopandleadstobetterperformance.Forexample,if the ROIof an outletis belowthe standardsspecified,there shouldbe areview system, whichdetectsthe sections that have not contributedtheirpartandhave exceededitsothat the performance canbe correctedor rewarded. Q. 4. Discuss the concept of a Group.Explainthe purpose of a Group.Discuss the typesof Formal Groups. Ans.4- Conceptof a group A groupis basedonthe conceptof synergyto attainthe goal.By synergywe meanthatthe sum total of the outputby the individualmembersare collectivelysurpassedbythe groupandthis happensbecause of itsabilitytocreate betterinput(ideas) and workpracticesthatcoverthe deficienciesof eachother.Social facilitationtheoryexplainshow performancetendstoimprove or decline inthe presence of others.Infactthe synergyisdependentonsocial facilitation.Social facilitationeffectalsoresultsinpeople whoare proficientinajobdoingthe same job fasterand betterinthe presence of a groupand those whoare notproficientdoingitworse inthe presence of a group. Interestingly,if we have totrainpeople onsimple things,itisbetter todoit ina groupas the learningisfasterandif on complex things,itisbettertotrainthemindividually.Thatperhaps explainswhymentoringisfarmore effective thanaclassroom sessionorgroupactivityintraining managersto take decisions. Purpose of groups People joingroupsforvariouspurpose suchas: Goal achievement:Whenittakesmore than one personto do a thinge.g.,an orchestraor playcards, or designasystem,make a commentary,thinkandcreate a solution,youneedto joina group. Identity:It givespeople identityandtherefore enhancestheir self-esteemandoftenthe affiliationneeds. Power and status: Groups give bothsince a groupis able toascertainrightsof itsmembers betterandgive thema positioninsocietyandlife.
- 5. Safety and security:Groups provide SafetyandSecurity. Formal groups:- Everyorganisationisdividedintoformal organisationalstructuressuchasmarketing,finance, operations,projectetc.These are oftencalleddepartmentsandtechnicallytheyhave the characteristicsof a group i.e.,size,interaction,influence andgoals.However,thesecharacteristics are notstrict (i.e.,the size islarge,interactionfew,influence limitedandgoalsmany) inthe departmentof anorganisation.Now,if the departmenthastoaccomplisha specificgoal,itwould have to create a group withinthe departmentwithapurpose of doingthe worke.g.,creatingan auditgroup withinthe finance department.These maybe permanentortemporaryinnature.A formal grouphas the followingcharacteristics: Definedgoals,deadlines,androles. Explicitlydefinedstructure,procedural rules,andmembershipandnorms. Relativelypermanentortemporary(e.g.steeringgrouporproblemsolvinggroup). Types offormal groups: - Formal groupscan be classifiedintothe following: Command group: A commandgroupconsistsof a managerand the employeeswhoreporttohimor herand fitsintothe organisation'shierarchy.Forexample,outletmanagerandthe managersof bakery,snackmeal,merchandise whoreporttohim.Membershipinthe grouparisesfromeach employee'spositiononthe organisational chart. Task Group:A task groupis made up of employeeswhoworktogethertocomplete aparticulartask or project.Here,the membersdonotreportto the hierarchical superiorbuttothe personwhois giventhe taskto do. For example,URS’taskgroupto identifythe bestoutletconsistsof members fromvariousoutletsandarea andwho donot reportto the group leaderinthe normal processof business. Committee:A group of people officiallydelegated toperformafunction,suchasinvestigating, considering,reporting,oractingona matter.They usuallymake recommendationsandreports. Q. 5. Discuss any ten characteristics of an Effective team. Ans.5:- A teamisany groupof people organisedto worktogetherinterdependentlyand cooperativelytomeetapurpose or a goal. Characteristics ofan Effective team:- 1. Clear purpose refersto the conditionwhere groupmembersagree onthe group'sgoals.These sharedgoalsact to spark group effortbyprovidingcleardirectionandbuyin.(Itshouldbe noted that such goalscouldhave beenunilaterallysetbythe leaderasitoftenhappensinanorganisation, jointlysetbythe leaderandgroupmembers,orsetby groupmembersindependentof the boss). 2. Consensusdecisionmaking occurs whengroupsallow all memberstoexpresstheiropinionsand preferencesopenlyanddiscussanydisagreementthatmightexist.Withinthe consensusdecision- makingprocess,all membersare allowedto‘have theirdayincourt’while buildingaconsensusasto whichalternative iscorrect.Some members maystill believe thatthere isabetteralternative but can accept the positiontakenbythe othergroupmembers.
- 6. 3. Shared leadershipoccurs whensuchleadershiprolesascontributor,collaborator,challenger, facilitator,andcontrollerare carriedoutbythe groupmembersratherthanby the group's leader exclusively.Suchsharedleadershipvariesfromsituationtosituationandmaynotalwaysbe carried out bythe same individual. 4. Listeningreflectsthe willingnessof groupmemberstolistentoothersinaneffortto achieve interpersonalunderstandingandfacilitateinterpersonal sensitivity.Teammembersactivelyseekout listeningopportunitiestoensure openchannelsof communicationare maintained. 5. Open communicationoccurs whengroupmemberstake advantage of communication opportunities,openlyshare theirfeelings,provide timelyandrelevantfeedback,andshare relevant informationwithothergroupmembers. 6. Self-Assessmentallowsgroupsandtheirmemberstoassessperformance,changing environments,andexistinggoals.Suchassessmentallowsgroupstodeterminewhenchangesshould be made to ensure groupsuccess. 7. Civiliseddisagreementimpliesthatgroupshave developedappropriateinternal mechanismsand interpersonalsensitivitiesnecessarytomanage the full range of conflictsthatoccur withinthe groups. 8. Style diversityoccurs whengroupmembersare notonlytolerantof style andbehavioural differencesbutalsoactivelyseekoutthose differencesnecessarytoperformanddevelop. 9. Networkingreflectsgroupmembers'abilityandwillingnesstolinkupwithothers,external tothe group.Such contacts can be drawn uponforinformation,support,andassistance whenneededto facilitate goal achievement. 10. Participationby group membersinabroad range of groupactivitiesanddecisionsfacilitates memberbuy-in.Participationalsofacilitatesstrategydevelopmentandincreasesmemberself- efficacy. Q. 6. Write short notes on the following: a) Goleman’sModel of Emotional Intelligence. b) Fielder’sContingencyModel of Leadership Ans.6- Emotional intelligence isthe capacityforrecognisingourownfeelingsandthose of others, for motivatingourselves,formanagingemotionswell inourselvesandinourrelationships Goleman’smodel ofEmotional Intelligence (EI) Daniel Golemanandthe Hay Group have identifiedasetof competenciesthatdifferentiate individualswithEI.The competenciesfallintofourclusters: Self-awareness:Capacityforunderstandingone'semotions,one'sstrengthsandone's weaknesses. Self-management:Capacityforeffectivelymanagingone'smotivesandregulatingone's behaviour. Social awareness:Capacityforunderstandingwhatothersare sayingandfeelingandwhy theyfeel andact as theydo. Relationshipmanagement:Capacityforactinginsucha way that one isable to getdesired resultsfromothersandreach personal goals.
- 7. The most popularandacceptedmixedmodel of EIisthe one proposedbyGoleman(1995). He viewedEIasa sumof personal andsocial competences.Personal competencedetermineshow we manage ourselves,whereassocialcompetence determineshow we handle ourinterpersonal relationships. Personal competence:- Personal competence comprisesthree dimensionsof EI,suchas, self-awareness,self-regulationand motivation.Self-awarenessisthe abilityof anindividual toobservehimself/herself andtorecognise 'a feelingasithappens'(Goleman,1995). The hallmarksof thisabilityare self-confidence,self- assessmentandopennesstopositivecriticism.Self-regulationisthe abilitytocontrol emotionsand to redirectthose emotionsthatcanhave negative impact.Trustworthiness,integrity,tolerance of ambiguity andattitude toacceptchange are some characteristicsof thisability.Motivationisthe abilitytochannelizeemotiontoachieve agoal throughself-controlandbymoderatingimpulsesas perthe requirementof the situation.The peoplewhohave thisabilityare optimisticandcommitted towardsorganisational aswell asindividualgoals. Social competence:- Social competence comprisesof twodimensionsnamely,empathyandsocial skills.Empathyisthe abilitytofeel andshowconcernforothers,take theirperspectiveandtotreat people accordingto theiremotional reactions.Peoplewiththisabilityare expertsingeneratingandmotivatingothers. Social skillsare the abilitiestobuildarapportand to manage relationshipswithpeople.People havingthisskill are veryeffective inpersuasivenessandteammanagement.‘Socialskill’isthe culminationof all othercomponentsof EIassumingthatpeople caneffectivelymanage socialand workrelationshipsonlywhentheycanunderstandandcontrol theirown emotionandcan emphasise withthe feelingsof others. Fielder’sContingencyModel ofLeadership Contingencytheoriessuggestthatthere isnoone beststyle of leadershipandthataneffective style dependsonhowthe leaderadoptsastyle inrelation tothe group andthe situation.A previously successful style maynotbe effective inanew context.Effective leadershipisaboutfindingagoodfit betweenthe behaviour,context,andneed. Fielder’sContingencyModel (FCM) ofleadership:- Thismodel dominatesthe modernliterature on contingencytheories.FCMpostulatesthatthe leader’seffectivenessisbasedon‘situational contingency’whichisaresultof the interactionof twofactors,i.e.,leadershipstyle andsituational favourableness.Thoughover400 studieshave beenconductedusingthistheory,itisnota highly popularmodel.Fieldersuggestedthatthe leadershipstyleof the leadercanbe measuredbyan instrumentcalledleastpreferred co-worker.The termanditsuse seemtohave made Fielder unpopular.He identifiedthree situational componentsthatdeterminethe favourableness of situationcontrol.Theyare: How definedandstructuredthe workis? How muchpositionpower(authority) the leaderhas? The relationshipbetweenthe leaderandthe followers. Thoughthere mightbe criticismthatit iscomplex andthe LPC measuresare inaccurate andoften missesitspredictivevalidity, etc.,thismodel givesusaclearideaof the fitbetweenthe leaderand the situationandtendstosubstantiate thateffectivenessiscontingentuponthe leader’sorientation and the situation.